Regulatory Alerts2025-11-12
Central Bank of Somalia Grants First Licences to Microfinance Institutions
The Central Bank of Somalia has approved the inaugural licenses for seven non-deposit-taking microfinance institutions, formalizing the sector under the newly enacted Financial Institutions Law 2025. The new regulatory framework mandates that licensed entities adhere to strict governance, transparency, reporting, and consumer protection standards while requiring all unlicensed operators to submit applications by 6 December 2025 or face legal enforcement. This initiative aims to expand access to Sharia-compliant financial products for underserved households and microenterprises, thereby strengthening financial inclusion and reducing poverty through a regulated, transparent market.
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