Friday September 27, 2024
Mogadishu (HOL) — The United Nations Development Programme (UNDP) and Visa have partnered to accelerate digital financial inclusion in Somalia, with a focus on helping vulnerable communities and Micro, Small, and Medium Enterprises (MSMEs) overcome financial barriers. The partnership was announced during the UN General Assembly on Wednesday and is part of broader efforts to support Somalia's Sustainable Development Goals (SDGs).
The two organizations formalized their collaboration in early September with a Memorandum of Understanding (MoU) that outlines a shared vision for improving public services and expanding digital payment systems, particularly for youth and women entrepreneurs. The joint effort will address key barriers faced by MSMEs, such as high-interest rates, lack of collateral, and limited credit history, which often restrict access to formal financing.
Lionel Laurens, UNDP Somalia Resident Representative, expressed optimism about the newly formed partnership with Visa, highlighting its potential to drive progress toward the Sustainable Development Goals (SDGs) by fostering digital transformation and financial inclusion across Somalia.
"I strongly believe our new partnership with VISA will play a catalytic role in leveraging cutting-edge digital innovative solutions for the public and the private sector to address some of the persistent challenges facing Somalia. We hope many Somali people will benefit from this cooperation through enhanced access to digital financial services and public service delivery," said Laurens.
The partnership will also support Somalia's National Identification and Registration Authority (NIRA) in scaling the country's digital national ID project. Additionally, UNDP and Visa will collaborate to build e-Government infrastructure in line with Somalia's National Transformation Plan.
MSMEs play a crucial role in Somalia's economy, accounting for 80% of employment but contributing only 1.2% to the nation's GDP due to financial challenges.