In a landmark development for Somaliland’s financial sector, the Central Bank of Somaliland has been granted associate membership in the International Association of Deposit Insurers (IADI). The approval came during an Executive Council meeting in Taipei, Taiwan, on September 11, 2025, coinciding with the IADI Core Principles International Conference and the 40th anniversary celebrations of Taiwan’s Central Deposit Insurance Corporation (CDIC).
Governor Abdinasir Ahmed Hersi of the Central Bank of Somaliland announced the news in a detailed statement released from Taipei, describing it as a “historic decision” that underscores Somaliland’s dedication to international financial standards. “This recognition marks a significant milestone for Somaliland,” Hersi stated. “It validates our country’s unwavering commitment to building a sound, transparent, and resilient financial sector, one that upholds international standards of governance and inspires confidence both at home and abroad.”
The IADI, a Basel-based global body representing over 100 deposit insurers, provides technical support in policy development, regulatory practices, and deposit insurance. Hersi expressed gratitude to the IADI Executive Council, noting that the membership will enhance the Bank’s capacity to integrate into international financial systems. This move is particularly vital for Somaliland, as it seeks to bolster its economy amid challenges like limited access to global payment networks.
Strengthening Bilateral Ties with Taiwan
Governor Hersi, who is currently in Taipei, outlined upcoming high-level meetings with key Taiwanese institutions, including the Central Bank of Taiwan, the Financial Supervisory Commission (FSC), the CDIC, and the Ministry of Foreign Affairs. These engagements aim to expand economic and trade cooperation, focusing on modernizing Somaliland’s financial infrastructure. Key areas of collaboration highlighted in the announcement include: –
Capacity Building and Technical Support:
-Joint training programs, expertise exchanges, and staff secondments to build institutional strength at the Central Bank of Somaliland.
-Financial Technology Infrastructure:
Aid in establishing IT systems, cybersecurity, servers, core banking platforms, national switching, and payment systems.
-Policy and Regulatory Framework Development:
Advice on creating robust policies, supervisory practices, and regulations for a stable and inclusive financial sector.
– International Payment Systems and SWIFT Integration:
Assistance to overcome barriers in cross-border payments, including settlement systems and secure channels.
Hersi, who played a pioneering role in initiating Somaliland-Taiwan relations in 2019, reaffirmed his commitment to the partnership. “Our partnership is not just bilateral—it is a statement to the world that two democracies, though unrecognized in some international forums, can chart their own course of cooperation, mutual respect, and shared progress,” he said.
This builds on a history of growing ties, including a July 2025 coast guard cooperation agreement and earlier pacts on IT, agriculture, health, and education. Taiwan and Somaliland, both facing diplomatic isolation—Taiwan due to China’s influence and Somaliland due to its unresolved status with Somalia—have fostered a unique alliance since establishing representative offices in 2020.
Recent collaborations, such as Taiwan’s support for health information systems in Berbera and wildlife conservation, underscore the mutual benefits.
Somaliland’s Strategic Vision and Geoeconomic Role
The announcement ties the IADI membership to Somaliland’s broader economic ambitions. Hersi emphasized that a strengthened financial system will drive sustainable growth, attract investment, promote trade, and improve financial inclusion.
Somaliland’s location on the Gulf of Aden, adjacent to the Bab al-Mandab Strait—a vital chokepoint for 21% of global trade and 12% of energy supplies—positions it as an emerging hub in the Horn of Africa. Ongoing projects like the Berbera Port expansion, the Berbera Economic Free Zone, and the Berbera-Ethiopia Corridor are expected to amplify this role.
“A modern, well-regulated financial system will further consolidate Somaliland’s role as a reliable partner for global trade and financial stability,” Hersi noted.
In closing, Hersi congratulated the CDIC on its anniversary, drawing inspiration from Taiwan’s achievements in deposit protection and financial resilience. He acknowledged upcoming challenges but expressed optimism: “With determination and the support of our partners in Taiwan and beyond, I am confident we will build a stronger, more inclusive, and globally connected financial system for Somaliland.”
This development has garnered positive reactions on social media, with Somaliland officials and supporters hailing it as a step toward global financial integration. The news aligns with IADI’s recent growth, having surpassed 100 members earlier in 2025, and reflects Somaliland’s proactive diplomacy despite its unrecognized status.