Mohamoud Walaaleye
The Central Bank of Somaliland, led by Governor Abdinasir Ahmed Hersi, Deputy Governor Hamse Abdirahman Khaire, and Director General Yasin Jama Alas, has spearheaded strategic initiatives to strengthen the financial system, safeguard the value of the Somaliland Shilling, and boost the national economy. Their efforts have focused on modernizing banking systems, enhancing regional trade, overseeing financial institutions, and fostering international cooperation, particularly in the development of the Berbera Port.
- Modernization of the Financial System
The Central Bank has implemented modernization programs to enhance the efficiency and credibility of the financial system. A five-year plan was developed to improve banking capacity and financial infrastructure. Additionally, a meeting was held to support the World Bank-funded SPRING project, aimed at promoting a sustainable financial system.
- Strengthening Regional Trade
The Bank has worked on improving payment systems for traders, particularly those in neighbouring countries, and cross-border banking services, such as livestock exports. This aligns with the strategy to support the Berbera Port, which has become a competitive trade hub in the Horn of Africa.
- Oversight and Stabilization of the Somaliland Shilling
Robust measures have been taken to control inflation and stabilize the value of the Somaliland Shilling. The Bank has strengthened the foreign currency exchange system, particularly at the Berbera Port, to ensure economic stability. Strict policies have been enacted to combat financial crimes and enhance international confidence.
- International Cooperation
The Central Bank participated in global forums such as the IADIARC 2025 in Kenya and established partnerships with countries like Taiwan and African nations. It also signed an MoU with AfricaNenda to advance financial services. A working visit by Deputy Governor Hamse Abdirahman Khaire to Berbera on August 10, 2025, underscored the Bank’s role in promoting international collaboration.
- Building Financial Trust
Modernization programs, oversight of financial institutions, and staff training have increased public and business confidence, facilitating the preservation of the national currency’s value.
Economic Impact on the Country
– Boosting Regional Trade: Strengthening livestock exports to Ethiopia has increased national revenue.
– Berbera Port Development: A $500 million investment from DP World and infrastructure improvements have transformed Berbera into a vibrant economic hub.
– Financial Stability: Modernized banking systems and stringent policies have contributed to economic stability.
Challenges and Opportunities
Challenges such as limited access to financial services and weak financial infrastructure persist. However, opportunities arising from international cooperation, investments in the Berbera Port, and digital solutions (Tether, Sorted Wallet, GEAMT) provide Somaliland with the potential to address these challenges.
Conclusion
The leadership of the Central Bank of Somaliland has demonstrated significant achievements in modernizing the financial system, safeguarding the Somaliland Shilling, and fostering economic growth. Their strategic initiatives, including strengthening regional trade, overseeing financial institutions, and promoting international cooperation, have laid a strong foundation for economic progress. The development of the Berbera Port and international investments reflect a forward-looking vision. To sustain these successes, there is a need to further strengthen financial infrastructure, enhance public confidence, and accelerate strategic investments in the Berbera Port.