MOGADISHU Somalia — International Bank of Somalia is first bank in Mogadishu that not only offers money transfer services, but international banking services as well. PHOTOS – AMISOM SOMALIA
The other challenge is you need to educate people on how the banking sector really works (and) who benefits from the banking sector, because people have their own mentality of how banks work, so some of the products you’re going to introduce, if you are not able to adapt to the local customs, there will be a challenge,” he continued.
“Most Somali people are used to the ‘hawala’ money transfer system, there was no recognised banking system.
“If I’m not wrong, this is the first bank that not only offers money transfer services, but international banking services as well,” added Abdi Nasir Sheik Ahmed, one of IBS’s first customers.
Analysts regularly point to Somalia’s economic potential.
The resource-rich Horn of Africa nation lies in a region that the World Bank says experienced 4.7 per cent growth last year.
Livestock, remittances and telecommunications form the backbone of a healthy informal sector.
The unprecedented return of diaspora Somalis looking to invest and the bustling sea and air ports are also encouraging signs in the absence of substantive economic statistics.
The recent and highly-publicised installation of the country’s first ATM at the popular ‘Jazeera Hotel’, is another symbolic – and tangible – indicator that Somalia is now open for business.
“Somalia’s banking sector is going to grow.
“More banks are coming, there will be more regulations and actors coming into the scene.
“There will be good news coming, for example the stock market, an association of banks will also be in play,” said Ahmed Hassan.
Somalia’s financial players like Ahmed Hassan have big plans for their country, but the true measure of their success will be how profoundly and quickly the benefits of their initiatives will be felt in the businesses and lives of their nation’s ordinary citizens.
