A groundbreaking collaboration has been forged between the National Identification and Registration Authority (NIRA) and the Somali Bankers Association (SBA).
According to Abdiwali Tima’adde, the Director General at NIRA, this alliance is poised to revitalize the economy by harmonizing Somali business operations with global standards while curbing calamities like fraud and money laundering.
“Beneath the facade of this partnership lies a blueprint for discussions on its potential impacts, strategies to bring registration and National ID closer to everyday folks, and vital stakeholder contributions to economic progress. Access to secure, modern financial services aligned with international criteria stands at the forefront,” stated Mr. Tima’adde.
This pivotal agreement heralds a significant leap forward, setting the stage for an extensive overhaul in Somalia’s economic and financial realm.
The goal, Mr. Tima’adde noted, is to meld the Somali National ID setup with the banking sphere. This initiative aims to spark inclusive growth and fortify financial safety.
He acknowledged the instrumental role of the World Bank in this feat, crediting their support as indispensable for rolling out the Somali National ID system.
The 2019 report by McKinsey Global Institute showed that embracing digital ID systems similar to Somalia’s could unleash economic value reaching 3–13% of the global GDP by 2030, he reflected.
Deputy Prime Minister Salah Ahmed Jama emphasized that the national ID card is central to the National Transformation Plan (NTP) under development. He underscored the importance of the pact with the Somali Bankers Association in linking Somalia’s economy to the global financial network.
Minister for Interior Ali Yusuf Ali shared similar sentiments, highlighting the critical nature of integrating the National Identification System with banking.
In underscoring the initiative’s role in strengthening financial stability, Ali asserted that it would bolster public trust and ensure compliance with international standards.
Kristina Svensson, World Bank Country Manager for Somalia, remarked on how introducing a robust national ID system could spur economic growth. With over 85% of Somalis lacking formal identification, service delivery has suffered, limiting opportunities for countless individuals.
Mohamed Adan Moallim, Minister for Communications, expressed appreciation for NIRA’s efforts in setting up the KYC-ID for user identification, noting that the forthcoming data center will significantly boost system efficiency.
In the banking sector’s drive to establish a Credit Reference Bureau, Somalia’s Central Bank Governor Abdirahman Mohamed Abdullah revealed that the ID will serve as a key reference, enhancing accuracy and reliability in credit scoring due to its Unique Identification Number.
Yasin Ibar, the CEO of the Somali Bankers Association, echoed this sentiment with enthusiasm, stressing the alliance’s significance for correspondent banking and Know Your Customer (KYC) compliance.
Edited by: Ali Musa
alimusa@axadletimes.com
Axadle international–Monitoring
