Ziraat Katilim Bank of Türkiye has launched a branch in the Somali capital of Mogadishu, becoming the first international financial institution to ply from the Horn of Africa nation in more than five decades, the Central Bank of Somalia (CBS) announced on Sunday.
According to the CBS, the establishment of the first foreign bank in Somalia would strengthen the country’s financial sector by expanding economic possibilities and commerce between the country and its trading partners.
“The new branch of Ziraat Katilim Bank in Somalia is expected to offer a wide range of corporate banking services to businesses, international institutions, and development partners,” the Somali apex bank said in a statement issued in Mogadishu.
Following a rigorous application procedure, the CBS awarded two operating licenses to two overseas banks in July 2022: Ziraat Katilim Bank and Egypt’s Banque Misr. Ziraat Katilim is a state-owned participation bank that is part of the Ziraat Finance Group which has 15 subsidiaries and 27 offices in 20 countries.
“We are happy to see the operationalization of the Ziraat Katilim branch in Mogadishu. This is a testament to the success of the reforms of Somalia’s financial sector, further enhancing opportunities for investment and development,” CBS Governor Abdirahman Mohamed Abdullahi said.
Mohamed stated that the CBS is still dedicated to promoting inclusive economic growth in Somalia and establishing a strong and stable financial system.
“We anticipate the new bank to add value to the development of Somalia’s financial sector and contribute to the growth of our economy.”
In the 1960s, foreign commercial banks that operated in Somalia included Italy’s Banco di Napoli and Banco di Roma, Egypt’s Banque de Porte Saide and UK’s National Grindley’s Bank.
But, when the Supreme Revolutionary Council (SRC) overthrew the civilian government in October 1969, all foreign banks in Somalia were nationalised under an order of the SRC on May 7, 1970.
Turkey’s Ziraat Katilim bank launch in Somalia heralds better and bigger economic opportunities for the Somali public
