In a significant move to advance the Sustainable Development Goals (SDGs) in Somalia, the United Nations Development Programme (UNDP) and Visa, a global leader in digital payments, have entered into a strategic partnership. This collaboration aims to drive digital financial inclusion and transformation across Somalia, focusing on underserved and vulnerable communities.

Partnership Announcement

The partnership was officially announced during an event on the sidelines of the UN General Assembly in New York on September 25. The Memorandum of Understanding (MoU) was virtually signed earlier in the month by UNDP Resident Representative Lionel Laurens and Aida Diarra, Senior Vice President and Head of Sub-Saharan Africa at Visa.

Objectives and Focus Areas

The MoU outlines a comprehensive framework for UNDP Somalia and Visa to jointly advance digital financial services for Somali Micro, Small, and Medium Enterprises (MSMEs) and citizens. Key focus areas include:

• Improving Public Services: Enhancing and digitalizing government systems and processes.
• Financial Awareness: Raising financial literacy among Somali MSMEs and individuals.
• Capacity Building: Designing and implementing programs to build the capacity of national stakeholders, particularly private sector entities and institutions like the Central Bank of Somalia and the National Identification and Registration Authority (NIRA).
• Digital National ID Project: Supporting the scalability of the Somali digital national ID project with NIRA.

Empowering MSMEs and Entrepreneurs

A significant part of the UNDP-Visa joint program will focus on advancing digital payments and financial services for MSMEs, youth, and women entrepreneurs. Given that SMEs contribute approximately 80% of employment and 1.2% of Somalia’s GDP, addressing their financial barriers is crucial. The partnership aims to enhance access to formal financing solutions and innovative tools to overcome challenges such as high-interest rates, lack of collateral, and insufficient credit history.

Leadership Insights

Lionel Laurens, UNDP Somalia Resident Representative, expressed his enthusiasm for the partnership, stating, “We are delighted to start this exciting partnership with Visa to make progress on the Sustainable Development Goals (SDGs). This strategic collaboration will aim at advancing digital transformation and financial inclusion in Somalia. We hope many Somali people will benefit from this cooperation through enhanced access to digital financial services and public service delivery.”

Aida Diarra, Senior Vice President and Head of Sub-Saharan Africa at Visa, added, “We are thrilled to collaborate with UNDP Somalia to advance digital transformation and financial inclusion across the region. Utilizing our knowledge in digital payments and financial services, we strive to empower Somali MSMEs and marginalized communities, thereby promoting economic growth and sustainable development.”

Future Prospects

The collaboration will also support the creation of a robust e-Government infrastructure, aligning with Somalia’s National Transformation Plan and inclusive digital transformation goals. Both UNDP and Visa are committed to sharing critical knowledge and insights related to financial inclusion and the digital economy, ensuring a sustainable and inclusive growth trajectory for Somalia.

This partnership marks a significant step towards leveraging digital innovation to address some of Somalia’s most pressing challenges, ultimately contributing to the nation’s economic development and the well-being of its people.