In a significant step toward enhancing economic resilience and international integration, the Central Bank of Somaliland has deepened its partnership with Taiwan through high-level discussions focused on financial sector modernization.
Abdinasir A. Hersi, Governor of the Central Bank of Somaliland, met with key Taiwanese officials, including Ambassador Wu Chih-chung François, Deputy Minister and Acting Minister of Foreign Affairs, as well as leaders from Taiwan’s Central Bank, Financial Supervisory Commission (FSC), and Central Deposit Insurance Corporation (CDIC).
These engagements, held on September 13, 2025, underscore the evolving “special relationship” between the two nations, initiated in 2019 and built on mutual respect and shared democratic values. The talks highlighted Somaliland’s push to overcome financial isolation amid its unrecognized status, with Taiwan pledging support in critical areas to bolster economic stability in the Horn of Africa.
This development comes amid growing bilateral ties, including recent coast guard agreements and technological collaborations, positioning the partnership as a model for like-minded states facing diplomatic challenges.
Reaffirming a Strategic Partnership Governor Hersi, who played a pioneering role in establishing Somaliland-Taiwan relations in 2019, emphasized the maturity of this alliance during his meeting with Taiwan’s Foreign Ministry. “Deepening cooperation in finance, trade, and technology will be critical to the prosperity of both nations,” Hersi stated, recalling the trust-based foundation laid over the years.
Taiwan’s leadership echoed this sentiment, with the Acting Foreign Minister affirming Taiwan’s commitment to expanding support, particularly in finance.
Accompanied by Somaliland’s Ambassador to Taiwan, H.E. Mohamoud Adam Jama Galal, and Senior Advisor Mohamoud Ahmed Mohamed, Hersi’s visit builds on prior milestones, such as the 2020 establishment of mutual representative offices and a 2021 IT cooperation agreement. More recently, in July 2025, the two sides signed a coast guard deal to enhance maritime security, further solidifying ties.
Focus Areas for Financial Modernization The core of the discussions centered on practical support for Somaliland’s financial infrastructure. Over several days, Hersi engaged with Taiwan’s Central Bank, FSC, and CDIC to outline a four-pillar strategy for collaboration:
1. Capacity Building: Training programs, staff exchanges, and technical assistance to enhance institutional expertise at the Central Bank of Somaliland.
2. Modern Financial Infrastructure and Technology: Development of IT systems, cybersecurity frameworks, core banking platforms, and payment systems.
3. Legal and Policy Frameworks: Guidance on designing regulatory standards, supervisory practices, and prudential policies aligned with international best practices.
4. Integration into Global Systems: Assistance in accessing SWIFT and other international payment networks to facilitate secure cross-border transactions, remittances, and trade.
These initiatives aim to address Somaliland’s exclusion from global financial networks, a barrier exacerbated by its lack of formal recognition. Hersi noted that such support is “essential to breaking Somaliland’s financial isolation and strengthening our economy,” drawing parallels to Taiwan’s own success in building a resilient sector despite geopolitical pressures.
In a separate meeting with CDIC Chairman Tien-Mu Thomas Huang, President Annie Cheng, and Executive Vice President Yvonne Y. Fan, the parties explored deposit insurance operations, risk management, and resolution frameworks. Somaliland expressed readiness to sign Memoranda of Understanding (MoUs) with Taiwanese institutions, starting with CDIC to establish a Somaliland Deposit Protection Fund.
This would mark the first formal MoU in this domain, enhancing depositor confidence and financial stability. Additionally, the Bank of Somaliland’s recent associate membership in the International Association of Deposit Insurers (IADI), approved on September 11, 2025, during an executive council meeting in Taipei, complements these efforts. This milestone, celebrated alongside CDIC’s 40th anniversary, opens doors to global best practices and further integration.
Broader Implications for Somaliland and Taiwan
The agreements signal Taiwan’s strategic interest in expanding its footprint in Africa, particularly the Horn of Africa, where Somaliland’s strategic location and stability offer opportunities for trade, investment, and countering influences from other powers.
For Somaliland, the partnership supports economic diversification beyond livestock and fisheries, into technology, renewable energy, and manufacturing—areas where Taiwanese expertise, including from the National Chung-Shan Institute of Science and Technology, could prove invaluable.
Governor Hersi concluded the engagements by reaffirming: “Strengthening our cooperation will drive sustainable economic growth in Somaliland while expanding Taiwan’s reach and partnerships in the Horn of Africa. We are committed to building on the foundation we laid in 2019, overcoming our shared challenges, and creating a model partnership for others to follow.”
As Somaliland navigates its quest for international recognition—bolstered by recent U.S. discussions on potential partnerships—this collaboration with Taiwan not only fortifies its financial sovereignty but also highlights its role as a reliable partner in regional stability.