By Dr. Amina Sheikh Omar - is an academic and Islamic finance expert who serves as Deputy Rector for Planning and Development at SIMAD University, where she also works as a lecturer.
“Somalia’s financial progress should be measured not simply by access, but by whether financial services create resilience, opportunity, and security.” By Dr. Amina Sheikh Omar
I recently read the Somalia Financial Access Survey Report (SOM-FAS2026), published by the Central Bank of Somalia in partnership with the Somalia National Bureau of Statistics.
While this report provides critical evidence regarding how people in Somalia currently gain access to financial services, I believe it represents an even broader story: the ongoing evolution of Somalia’s financial system.
Most notable in the report is the substantial difference between banking penetration, which continues to be relatively low at approximately 19 percent, and the reach of mobile money infrastructure, which now extends to 87 percent of the adult population.
These statistics provide important insight into how financial access in Somalia did not evolve primarily through traditional banking channels. Rather, it evolved largely as a result of digital innovation and the basic operational requirements of daily life for many Somalis.
Mobile money has provided a fundamental tool for the majority of Somalis to perform simple tasks such as sending and receiving money and making payments in an environment where traditional formal banking has historically had little to no presence. In this way, mobile money has helped fill a significant gap in financial access that traditional formal banking systems had not addressed at scale.
While there is certainly considerable value in recognizing this progress, we should not take for granted that having access to financial services automatically equates to being included in those services.
ACCESS AND INCLUSION ARE DIFFERENT#
Perhaps the most important insight from the report is that access to financial services is just the beginning. Access allows individuals to participate within a system. However, true inclusion occurs when that system functions in a meaningful and sustainable manner for the individual.
Examples of this distinction include individuals who have access to mobile money but continue to lack the ability to regularly save funds, obtain affordable and reasonable loans, secure insurance (takaful) against potential risks or shocks, or successfully grow their businesses.
These distinctions matter because true financial inclusion implies not only that individuals can access the financial system, but also that the system functions in a meaningful and sustainable manner for them.
WHY DOES THE STORY MATTER?#
The Somalia experience is important for local readers because it represents a reality that local residents already understand: mobile money has become an integral component of everyday life.
Mobile money has fundamentally altered how families support each other, how businesses operate, and how communities adapt to rapid economic changes. For many Somalis, it has become an essential tool for managing their finances on a day-to-day basis.
For international readers, Somalia provides an additional example. It demonstrates that financial systems rarely develop in the same way across different countries.
When formal banking is either absent or unattainable for large portions of a country’s population, alternative solutions can emerge that offer faster, more adaptable, and more relevant responses to actual customer needs.
However, adaptation alone is insufficient. The next step is to leverage this momentum and establish a financial system that is not only accessible, but also stable, trusted, and resilient.
THE NEXT STEP#
While the report identifies several key areas for consideration regarding financial inclusion among Somali citizens, I believe its greatest contribution lies in raising the question of what financial inclusion ultimately entails.
If citizens possess the ability to utilize mobile money yet face persistent challenges with saving, obtaining financing at affordable rates, insuring themselves against possible shocks, or investing in their businesses, then the existing financial framework remains incomplete.
Furthermore, if households continue to be susceptible to potential shocks and small- and medium-sized enterprises (SMEs) lack the necessary tools to sustain growth, then citizens may have access to financial services without being economically empowered.
As such, I contend that our discussion must transition from an emphasis on coverage and convenience and instead concentrate on outcomes.
Future progress in Somalia will depend upon creating a robust financial ecosystem capable of supporting:
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● Accessible and reliable savings options;
● Affordable and reasonable lending;
● Practical insurance (takaful) products;
● Stronger consumer protection;
● Financial education and digital literacy; and
● Policies aimed at fostering innovative products and services while minimizing systemic risk.
These concepts represent tangible components of an inclusive financial system that could foster authentic economic resilience.
WHY SHOULD WE CARE ABOUT THIS REPORT?#
One aspect that I consider particularly compelling about the SOM-FAS2026 report is that it does not idealize the advancements made in providing greater access to digital financial services.
Instead, it recognizes what has been accomplished — notably through mobile money — while simultaneously highlighting areas of continued vulnerability. The report therefore illustrates what I believe constitutes a unique strength: a realistic understanding of current conditions that can guide policy initiatives moving forward.
Firstly, it reinforces my earlier point: the expansion of digital access is not, in itself, equivalent to expanding inclusion. In fact, as indicated above, a country can rapidly increase digital access and yet leave a considerable portion of its population economically unstable.
Secondly, this realization applies broadly beyond Somalia. Digital finance is often framed as a rapid solution to addressing financial exclusion in African nations and emerging economies.
Somalia demonstrates that the reality is far more complicated. Technology can significantly enhance access. However, achieving inclusion requires institutions, confidence in those institutions, and regulatory frameworks designed to facilitate the movement from mere participation in financial activities to sustained economic resilience.
CONCLUSION#
Somalia’s financial narrative continues to unfold. Mobile money has dramatically altered how people conduct transactions. This transformation has enhanced convenience and efficiency and introduced millions of Somalis to a common financial terminology.
Yet the next stage of this narrative must transcend mere convenience; it must emphasize resilience, opportunity, and dignity.
Ultimately, a financial system is not inclusive merely because it is widely utilized. Rather, it is inclusive when it enables people to deal with uncertainty, protect their households, support their businesses, and plan for the future.
Therefore, the Somalia Financial Access Survey Report (SOM-FAS2026) merits careful reading, not only by Somalis but by all individuals interested in how the future of financial inclusion will evolve globally.
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Dr. Amina Sheikh Omar is an academic and Islamic finance expert who serves as Deputy Rector for Planning and Development at SIMAD University, where she also works as a lecturer. She holds a PhD in Islamic Finance
The views expressed in this article are those of the author and do not necessarily reflect the editorial position of Dawan Africa.