In a landmark partnership aimed at accelerating Somalia’s digital transformation and advancing financial inclusion, the United Nations Development Programme (UNDP) and Visa, a global leader in digital payments, have signed an agreement that promises to catalyze the nation’s progress toward achieving the Sustainable Development Goals (SDGs). The collaboration, which focuses on digital financial inclusion, was formalized through a Memorandum of Understanding (MoU) signed virtually in September, and announced during a side event at the UN General Assembly in New York on September 25.
The MoU establishes a framework for UNDP Somalia and Visa to work together in expanding digital financial services to benefit Somalia’s Micro, Small, and Medium Enterprises (MSMEs), as well as underserved communities. This partnership will support the digitization of public services, build the capacity of national stakeholders, and advance financial literacy programs. The collaboration also prioritizes enhancing digital ID systems, supporting the Somali government’s efforts to scale the digital national ID project, which is expected to be transformative for financial inclusion and e-Government services.
Empowering Somalia’s MSMEs Through Digital Solutions
MSMEs play a vital role in Somalia’s economy, accounting for 80% of employment. Yet, they face significant hurdles, including high-interest rates, lack of collateral, and insufficient access to formal financing. The UNDP-Visa partnership seeks to break down these barriers by offering Somali MSMEs access to formal financing solutions and innovative tools designed to promote business growth. A particular focus will be placed on empowering women and youth entrepreneurs, key drivers of Somalia’s economic future.
“We are thrilled to start this exciting partnership with Visa to make progress on the SDGs,” said Lionel Laurens, UNDP Somalia Resident Representative. “Our strategic collaboration will aim at advancing digital transformation and financial inclusion in Somalia. I believe this partnership will help leverage cutting-edge digital solutions to address some of the persistent challenges facing Somalia.”
Visa to Drive Digital Transformation and Financial Access
Visa’s involvement in this initiative will harness its expertise in digital payments and financial services, offering Somali citizens and businesses new ways to engage with the global digital economy. Aida Diarra, Senior Vice President and Head of Sub-Saharan Africa at Visa, emphasized the company’s commitment: “We are excited to collaborate with UNDP Somalia to advance digital transformation across the region. By utilizing our knowledge in digital payments, we aim to empower Somali MSMEs and marginalized communities, promoting economic growth and sustainable development.”
The partnership is aligned with Visa’s broader mission to connect the world through secure, innovative, and reliable payment networks, enabling economies, businesses, and individuals to thrive. Somalia, where many small enterprises lack access to formal banking, stands to benefit significantly from the introduction of scalable digital financial services that cater to underserved groups.
Building Somalia’s Digital Infrastructure
One of the key elements of this partnership is the development of Somalia’s e-Government infrastructure, aligning with the country’s National Transformation Plan. By improving digital access and public service delivery, UNDP and Visa aim to modernize government processes and help Somalia make strides toward its inclusive digital transformation goals.
The collaboration will also promote knowledge sharing between the two organizations, providing critical insights into financial inclusion and the digital economy. This cooperative effort represents a crucial step toward Somalia’s long-term development, as it seeks to integrate more fully into the global economy through digital innovation.
With this new partnership, both UNDP and Visa are optimistic that Somalia will see tangible progress in its economic and social development, driving it closer to the fulfillment of the Sustainable Development Goals while creating lasting impacts on its financial landscape.
