First foreign bank opens in Somalia after five decades
Ziraat Katilim Bank of Türkiye has opened a branch in the capital of Somalia, Mogadishu, marking the first international financial institution to operate in Somalia in more than five decades.
The Central Bank of Somalia (CBS) on Sunday issued a statement granting the Turkish bank the license to operate "following an extensive application process".
“This is a testament to the success of the reforms of Somalia’s finance sector, further enhancing opportunities for investment and development,” said CBS Governor Abdirahman Mohamed Abdullahi in the statement.
“It is a historic moment for all of us, Ziraat Katilim is the first international bank to establish operations in Somalia for more than five decades. We anticipate the new Bank to add value to the development of Somalia’s financial sector and contribute to the growth of our economy,” he added.
In July 2022, the CBS granted operating licenses to two overseas banks, Ziraat Katilim Bank and Egypt's Banque Misr. Ziraat Katilim is a state-owned participation bank that is a subsidiary of the Ziraat Finance Group which has 15 subsidiaries and 27 offices in 20 countries.
In the 1960s, foreign commercial banks like Italy's Banco di Napoli and Banco di Roma, Egypt's Banque de Porte Saide, and the UK's National Grindley's Bank operated in Somalia. However, all foreign banks were nationalised in 1970 following a change from civilian government.
