Mogadishu (Dawan Africa) – The Central Bank of Somalia (CBS) has announced the official launch of the licensing process for Non-Deposit Taking Microfinance Institutions (NDMFIs), following the enactment of the Financial Institutions Law in May 2025.
The NDMFI Licensing Regulation, approved by the CBS Board of Directors, outlines requirements for governance, capital adequacy, reporting, and permissible financial activities. All NDMFIs will now be subject to supervision by the Central Bank.
A regulatory workshop was held on 3 July 2025 with registered microfinance institutions to explain the new framework and outline the steps required for compliance.
“All microfinance institutions operating in Somalia are invited to submit their license applications within six months from the regulation’s effective date of 6 June 2025,” the CBS stated in a press release.
According to available data, Somalia had approximately 11 licensed microfinance institutions as of 2023, with combined assets of around $21 million. The new regulation is intended to standardize oversight across the sector and integrate it into the country’s formal financial system.
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