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Waagacusub.net – Somalia’s IBS Bank, believed to hold the largest amount of funds, Al-Qaeda’s finance minister from Comoros, Fazul Abdallah, began issuing Visa card payments for the first time. The Al-Shabaab finance minister confirmed that Mohamed Ali Warsame had $157 million in cash, who, according to Khalif Ereg, later received a bribe of $2 million.
Visa and IBS Bank have partnered to launch Somalia’s first Visa card payment service. The partnership will allow Somalis to access global and local cashless payment opportunities.
“Visa’s entry into Somalia means we are on the right path of growth and progress. We will continue to build partnerships to bring convenient and innovative financial solutions to the people,” said Mahat Mohamed, CEO of IBS Bank.
Somalia has not had a formal banking or financial system since the fall of the government in 1991, but has made significant progress in reviving financial entities.
In 2014, 47 years after the invention of ATMs and 25 years after their introduction in Nigeria and Kenya, Al-Salaam Bank installed Somalia’s first ATM in Mogadishu, the capital of Somalia. This ATM is only for overseas returnees and foreigners to withdraw cash (US dollars).
A year later, in June 2015, Mastercard partnered with Premier Bank to become the first international payment network to enter the Somali market and issued 5,000 debit cards for Premier Bank account holders to use for domestic transactions.
“There are new players coming in now. Two years ago, we had about five licensed banks, and today we have 13 licensed commercial banks. This shows the enthusiasm for the sector,” Mohamed added.
Central Bank of Somalia Governor Abdurahman Mohamed Abdullahi said the partnership with Visa will connect Somalia to the global financial system and demonstrates growing confidence in the country’s banking and financial sectors.
The presence of Mastercard and Visa in Somalia will help position their market as arable land ready to be sown and reap a bountiful harvest.
“We plan to install an electronic verification system to simplify biometric identification of customers opening bank accounts or conducting transactions in Somalia. We believe this will help build trust and confidence in international transactions from Somalia to other financial markets,” Abdullahi said.
With more collaborations like this, the buzz about Somalia could increasingly focus on innovation and entrepreneurship.
By Omar Hilowle
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