UN Development Programme Partners with Visa to Boost Digital Financial Inclusion in Somalia
The United Nations Development Programme (UNDP) has partnered with Visa, a leading American payment company, to enhance digital financial inclusion for Micro, Small, and Medium-Sized Enterprises (MSMEs) and Somali citizens. This partnership was formalized through the signing of a protocol agreement, unveiled last week on the sidelines of the 79th United Nations General Assembly in New York, USA.
Key Objectives
The initiative will focus on improving public services and digitizing government systems and processes. It will also include awareness-raising activities and financial education programs targeting MSMEs and Somali citizens.
The Need for Financial Inclusion
Financial inclusion remains low in Somalia, which is considered one of the least developed countries in the world, as reflected in its ranking in indicators such as GDP per capita, Human Development Index, and Fragile States Index.
Current State of Financial Inclusion in Somalia
According to a report by the National Economic Council, 85% of the country's population does not have a bank account in commercial banks. The report also highlights that less than 5% of account holders are active users.
This partnership aims to address these challenges and promote digital financial inclusion, ultimately contributing to the economic growth and development of Somalia.
