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DevNews Desk| East Africa. Urge- DevWire
Somalia advances development-finance partnerships to support private enterprise and domestic investment
Somalia is seeking to move from reliance on external aid towards more sustainable development financing, with the African Development Bank Group backing efforts to strengthen domestic financial institutions and mobilise long-term investment.
The Bank reported on 8 October 2026 on its participation in the Somali Development Finance Forum, convened in Mogadishu on 19 September by the Somali Development and Reconstruction Bank under the theme “Financing Somalia's Next Chapter: From Recovery to Sustainable Development.”
The forum brought together government leaders, financial institutions and development partners to examine how Somalia can build a stronger financing system for productive investment.
President Hassan Sheikh Mohamud emphasised the need to strengthen domestic institutions and direct investment towards sectors capable of supporting long-term growth. These include agriculture, livestock, fisheries, renewable energy and small and medium-sized enterprises.
During the forum, the Somali Development and Reconstruction Bank signed financing partnership agreements with Asal Microfinance, Maal Microfinance and Himilo Microfinance under its Ramad Microfinance Programme.
The agreements are intended to expand access to Sharia-compliant financing for micro, small and medium-sized enterprises and productive sectors. This is particularly relevant in Somalia, where smaller businesses play a significant role in employment and local economic activity but often face constraints in accessing suitable finance.
The African Development Bank called for stronger investment pipelines and greater use of risk-mitigation instruments to help attract private capital.
The initiative represents an institutional step towards building a more sustainable development-finance architecture. Its long-term impact will depend on the availability of capital, sound lending practices and the ability to convert financing into productive investment and employment.
DevNews Desk| East Africa. Urge- DevWire
Date: 8 October 2026 | Country: Somalia | City: Mogadishu
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