Regulatory Alerts2025-07-18
Added · Updated
CBS Opens Licensing Process for Non-Deposit Taking Microfinance Institutions
The Central Bank of Somalia has launched the licensing process for Non-Deposit Taking Microfinance Institutions following the enactment of the Financial Institutions Law. The new regulation establishes clear requirements for licensing, governance, and capital adequacy to ensure responsible operation under central bank supervision. Institutions are invited to submit applications within six months of the regulation's effective date to benefit from enhanced credibility and integration into the formal financial system.
PRESS RELEASE Ref. 1743-CU-07/15 Date: 15 July 2025 Tel:+252 610 620004 Corso somalo 55, PO Box 11 Mogadisho, Somalia For further inquiries please contact Email: Communications@centralbank.gov.so website:www.centralbank.gov.so CBS Opens Licensing Process for Non-Deposit Taking Microfinance Institutions Mogadishu, Somalia, 15 July 2025. The Central Bank of Somalia (CBS) has officially launched the licensing process for Non-Deposit Taking Microfinance Institutions (NDMFIs), marking a significant step in the formalization and regulation of Somalia’s microfinance sector. This follows the enactment of the Financial Institutions Law in May 2025 and the subsequent approval of the NDMFI Licensing Regulation by the CBS Board of Directors. To guide the industry through this transition, CBS held a regulatory workshop on 03 July 2025, with currently registered microfinance institutions. The event provided a platform to explain the new licensing framework and highlight the importance of compliance in fostering public confidence, protecting customers, and unlocking new funding opportunities. The new regulation establishes clear requirements for licensing, governance, capital adequacy, reporting, and permissible activities, ensuring that institutions operate responsibly under the supervision of the Central Bank. CBS now invites all microfinance institutions operating in Somalia to submit their license applications within six months from the regulation’s effective date 06 June 2025. Timely compliance will position Microfinance Institutions to benefit from enhanced credibility, access to funding, and integration into Somalia’s formal financial system. The Central Bank acknowledges the constructive engagement of the sector throughout the consultation process and reaffirms its commitment to supporting a strong, inclusive, and well-regulated microfinance industry. For further information, please contact: Central Bank of Somalia Licensing and Supervision Department Email: licensing@centralbank.gov.so Website: www.centralbank.gov.so -END-