Monday August 26, 2024
Somalia's Deputy Prime Minister Salah Jama, Central Bank Governor Abdirahman Mohamed, Nira Director General Tima'adde and other ministers pose for a photo after signing of the partnership agreement. [Courtesy Nira]
Somalia has introduced a national digital identification aimed at enhancing its banking services across the country.
This follows a partnership between the National Identification and Registration Authority (NIRA) and the Somali Bankers Association (SBA).
NIRA Director General Abdiwali Tima’adde said the partnership will advance Somalia’s economy while aligning business practices with global standards and reducing financial risks such as fraud and money laundering.
“The partnership’s agenda also includes discussions on the implications of this collaboration, the strategic plan to bring registration and National ID issuance closer to the public, and the critical contributions of key stakeholders in driving economic development and ensuring access to modern, secure financial services that comply with international standards,” said Mr Tima'adde.
The landmark agreement represents a major milestone in advancing Somalia’s economic and financial landscape.
Mr Tima'adde said the collaboration aims to integrate the Somali National ID system with the banking sector, marking a significant step toward fostering inclusive economic growth and enhancing financial security.
This achievement he said, would not have been possible without the generous support of the World Bank, whose contributions have been crucial in the successful implementation of the Somali National ID system.
He said the 2019 McKinsey Global Institute report had indicated a widespread adoption of digital ID systems like Somalia’s could unlock economic value equivalent to 3-13 per cent of global GDP by 2030.
Deputy Prime Minister Salah Ahmed Jama said the central role of the national ID card in the National Transformation Plan (NTP) is currently under formulation, noting that the agreement with the Somali Bankers Association is a major step towards formally integrating the Somali economy with global financial systems.
His sentiments were echoed by Minister for Interior Ali Yusuf Ali who reaffirmed the importance of integrating the National Identification System with banking services.
While highlighting the initiative’s role in bolstering financial security, Ali said it will increase public trust, and ensure adherence to international regulatory standards.
Ms Kristina Svensson, World Bank Country Manager for Somalia while speaking about the potential impact of a comprehensive national ID system on economic development said over 85 per cent of Somalis currently lack official identification, which has constrained effective service delivery and limited opportunities for many citizens.
Similarly, Minister for Communications Mohamed Adan Moallim praised NIRA’s efforts in implementing KYC-ID for end-user identification and noted that the data centre, nearing completion will further enhance the system’s effectiveness.
Somalia’s Central Bank Governor Abdirahman Mohamed Abdullah said as the banking sector is working to establish the Credit Reference Bureau, the ID will serve as a primary reference with its Unique Identification Number, ensuring accuracy and reliability in credit assessments.
His remarks were echoed by Mr. Yasin Ibar, CEO of the Somali Bankers Association who expressed enthusiasm for the agreement, highlighting its importance for correspondent banking and KYC regulations.
He acknowledged the collective efforts of the banks and NIRA in advancing digitalization and financial inclusion.
Deputy Minister of Finance Abdiqafar Elmi Hange while reaffirming the importance of the national ID in enhancing financial transparency and accountability announced the upcoming launch of a Tax Identification Number linked to the National ID System, which will further streamline the tax system and contribute to a more robust financial infrastructure.