📋 Tender Overview
Project Number
608925
Primary Business Area
Financial Institutions Group
Disclosure Date
Sep 2, 2025
Country
Federal Republic of Somalia
Region
Africa
IFC Approval Date
Mar 11, 2025
Status
Active
Estimated Total Budget
$750,000.00
(Project budget includes all project-funded activities)
Last Updated Date
Project Estimated Start Date
May 1, 2025
Project Estimated End Date
Apr 30, 2028
Project Description
A significant portion of the Somali population relies on remittances, estimated at $1.2 billion annually, which constitutes about one-third of the country's GDP and surpasses aid and foreign direct investment combined. Domestic credit to the Somaliland’s economy heavily relies on remittances, which account for $1.3 billion annually (37% of GDP) and serve as a vital income source for up to 50% of the population, surpassing aid and foreign direct investment combined. Despite strides in digitization, with 70% of adults using e-money daily, access to credit remains limited, with domestic credit to the private sector at just 3.2% of GDP. MSMEs face significant barriers due to lack of collateral, formal records, and financial tools, while the financial sector struggles with inadequate credit information-sharing systems and reliance on informal processes. However, the widespread use of mobile money and remittance data presents an opportunity to develop innovative, data-driven solutions to address information asymmetry, enhance credit underwriting, and expand financial inclusion for underserved segments. This project aims to support the Bank of Somaliland in establishing a credit infrastructure ecosystem [that is, Credit Information System (CIS) and a Secured Transactions and Collateral Registry (STCR)], enhancing the legal and regulatory framework, and building stakeholder capacity. It will explore alternative data for credit decision-making and portfolio monitoring, contributing to a more robust financial sector, greater access to credit, and economic growth in Somaliland.
