History
Salaam Somali Bank was established in October 2009. [2] It was the first bank to operate in Somalia since 1991, and was founded to provide trusted banking services to Somali businesses and communities, as well as reconstruct the country’s banking system to facilitate economic development and growth. [3]
Salaam Somali Bank herein SSB, is a fully fledged Islamic bank which targets both consumers and businesses. The bank offers personal banking, commercial banking, and non-profit banking. [3] Additionally, the bank offers online banking, which was first introduced in the country in 2010 via its DEEQTOON service. The digital platform was created using Hormuud Telecom's technology to allow for mobile banking to be available for the first time in Somalia history. Mobile deposits, withdrawals, bank transfers and balance checks all became available services in the country. [2] Its DEEQTOON service received an update a year later in 2011, which allowed for accounts to transfer money and make digital purchases. SWIFT was introduced shortly afterwards, which allowed for quick and secure international transfers. [4] It also offers mobile banking and debit cards. [5] Hormuud Salaam Foundation was launched in 2009, the only bank at the time in Somalia to have an independent charitable arm. [2]
Salaam Somali Bank launched its monthly micro-finance programme in 2011. The programme is completely free, and by 2021 the program supported 6,306 whereby 59% men and 41% women with $7.5 million. It has been rolled out across Salaam Somali Bank’s premises across the country in peri-rural and urban areas.
In 2014, the institution also began providing automatic teller machine (ATM) services in Mogadishu. [6] [7] At their launch the devices were billed as the first of their kind in Somalia. [8] [9]
The Somali banking sector has experienced exponential growth in the last decade, which has led to 13 licensed commercial banks in the country, including SSB. Collectively they have US$1,462.5 million in total assets. [10]
Salaam Somali Bank’s financing arm has been active in rebuilding Somalia through strategic infrastructure investments. It was the sole financier of Daaru Salaam City, a green, luxury neighbourhood in Mogadishu. The project consists of 2000 homes, with the capacity of housing 12,000 people. The city boasts a complete set of amenities: ease of accessibility, a local market, health centres and schools.
In 2023, SSB launched a livestock insurance initiative to support pastoralists through the drought. Working in partnership with The World Bank and ZEP-RE, the insurance is part of a wider programme to decrease pastoralists’ reliance on aid and improve access to financial services. This includes promoting savings accounts and a 90% subsidised livestock insurance, which will assist pastoralists with forage when there is no grass to graze. [11]
Operations
Salaam Somali Bank opened its first branch in Hamarweyne and Bakaaro and later opened other branches in Mogadishu. [13] It has 50 branches across the country of Somalia, with 20 branches in the country's capital. [14] SSB offers fully Shariah compliant trade and investment finance, from a micro to corporate level. It’s trade finance focuses on fixed income investments, commodities, and equities. [15]
Salaam Somali Bank provides financial services to small, medium sized and large businesses, as well as NGOs. It has more from sole proprietors through to incorporated companies. [16]
Services
Salaam Somali Bank's personal banking services include current accounts (personal and business), as well as savings accounts (Dalmar savings accounts for the diaspora, Hajj-Umra account, and students savings account). [17]
A payroll system allows for electronic payments service for employees, vendors and any Somali financial institution, that allows users to make daily/weekly/ monthly payments, with enhanced security. Customers can move funds in U.S. dollars; manage payments ;and get remittance notifications by SMS and email to recipients. [14] It’s Islamic Financing products facilitates Mudharabah, Murabahah and Musharakah.
The institution's commercial banking services include business current accounts, Bank Guarantees and Letters of Credit. [18]
The bank also offers trade finance, which is the largest of the bank’s wholesale revenues and takes place through fixed-income investments, commodities, and equities. The bank utilises SWIFT for its international transfers, allowing for the flow of money in and out of Somalia. Its non-profit banking services include a Trust Account for non-governmental organizations, associations, societies and trusts. [19]
The bank also launched a microfinance product (Kalkaal) for small businesses and professionals. [20] Additionally, it offers anti-money laundering protection. [3]
SSB offers a range of Islamic financing options to personal and business customers. This is including equity-based finance services, Musharakah and Mudarabah, asset-based finance services, Murabaha and Istisna, as well as Ijaarah (leasing) and Qardul Hassan (free loan-based finance). [21]
Somalia is classified by the United Nations as a least developed country, with the majority of its population being dependent on agriculture and livestock for their livelihood. The economy of Somalia is $4.918 billion by gross domestic product as of 2020. For 1994, the CIA estimated it at purchasing power parity to be approximately $3.3 billion. In 2001, it was estimated to be $4.1 billion. By 2009, the CIA estimated that it had grown to $5.731 billion, with a projected real growth rate of 2.6%. In 2014, the International Monetary Fund estimated economic activity to have expanded by 3.7% primarily. This expansion was driven by growth in the primary sector and the secondary sector. According to a 2007 British Chambers of Commerce report, the private sector has experienced growth, particularly in the service sector. Unlike the pre-civil war period, when most services and the industrial sector were government-run, there has been substantial, albeit unmeasured, private investment in commercial activities. The investment has been largely financed by the Somali diaspora, and includes trade and marketing, money transfer services, transportation, communications, fishery equipment, airlines, telecommunications, education, health, construction and hotels.
Communications in Somalia encompasses the communications services and capacity of Somalia. Telecommunications, internet, radio, print, television and postal services in the nation are largely concentrated in the private sector. Several of the telecom firms have begun expanding their activities abroad. The federal government operates two official radio and television networks, which exist alongside a number of private and foreign stations. Print media in the country is also progressively giving way to news radio stations and online portals, as internet connectivity and access increases. In 2012, a National Communications Act was also approved by Cabinet members, and 2 October 2017, the president of Somalia Finally signed the National Communications Law, and became the official Law that regulated the ICT industry. Under that Law, National Communications Authority (NCA) of the federal Republic of Somalia has been established, with board of directors and a general manager. Somalia currently is ranked first in Africa for most affordable mobile data per gigabyte and 7th in the world.
Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems, among other services. Microfinance services are designed to reach excluded customers, usually poorer population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient. ID Ghana is an example of a microfinance institution.
Bosaso, historically known as Bender Cassim is a city in the northeastern Bari province (gobol) of Somalia. It is the seat of the Bosaso District. Located on the southern coast of the Gulf of Aden, the municipality serves as the region's commercial capital and is a major seaport within the autonomous Puntland state.
Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management. It is India's third largest private sector bank by market capitalisation after HDFC Bank and ICICI Bank. As of December 31, 2023, Kotak Mahindra Bank Ltd has 1,869 branches, 3,239 ATMs, and branches in GIFT City and DIFC (Dubai)
The Central Bank of Somalia (CBS) is the monetary authority of Somalia. Somalia has struggled to reestablish a functioning state since the collapse of an authoritarian regime in 1991. Somalia has been cited as a real-world example of an anarchist stateless society and a country with no formal legal system. The Transitional Federal Government, formed in 2004, was recognized as the central government of Somalia. Among other duties, it is in charge of ensuring financial stability, maintaining the internal and external value of the local currency, and promoting credit and exchange conditions that facilitate the balanced growth of the national economy. Within the scope of its powers, it also contributes to the financial and economic policies of the State.
Micro financing in Tanzania started in 1995 with SACCOS and NGOs. It has since then contributed to the increasing success of international micro financing. Microfinance stills remains a relatively new in Tanzania since it has not penetrated yet. Since 1995, microfinance has been linked to poverty alleviation programs and women. The government made efforts to ensure commercial banks have continued to provide financial support to the small entrepreneurial business. However a microfinance National Policy was implemented in 2002 to encourage and support microfinances in the country. Since the implementation, micro financing was officially launched and recognized as a poverty alleviation tool. Due to its increase exposure and use in the nation, commercial banks have developed interests in to offer microfinance. There are various microfinance banks that functions as supporting institutions in the country that usually provide microfinance services. These may include the CRDB, National Microfinance Bank, and AKIBA. However there are also other few banks that are concerned with micro financing in Tanzania such as the PRIDE and SEDA, Tanzania Postal Bank and FINCA. Community and small banks have also expressed interest in the same including the NGOs and other non-profit organizations.
Financial inclusion is the availability and equality of opportunities to access financial services. It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and services which include banking, loan, equity, and insurance products. It is a path to enhance inclusiveness in economic growth by enabling the unbanked population to access the means for savings, investment, and insurance towards improving household income and reducing income inequality
Hormuud Telecom Somalia Inc. is a privately held telecommunications company based in Mogadishu, Somalia. It is the largest telecommunication company and largest private-sector employer in the country, and also Somalia's first private enterprise to be internationally ISO certified.
Pride Microfinance Limited (PMFL), is a microfinance deposit-taking institution (MDI) in Uganda. It is licensed by the Bank of Uganda, the central bank and national banking regulator.
NMB Bank Plc., is a commercial bank in Tanzania. It is licensed by the Bank of Tanzania, the central bank and national banking regulator.
Banking or banking activity that complies with Sharia —known as Islamic banking and finance, or Sharia-compliant finance—has its own products, services and contracts that differ from conventional banking. Some of these include Mudharabah, Wadiah (safekeeping), Musharakah, Murabahah, Ijar (leasing), Hawala, Takaful, and Sukuk.
Agriculture in Somalia is a major employment activity and is the largest economic sector in the country. It contributes more than 65% to the national GDP from domestic distribution and exports to other parts of the continent, the Middle East and Europe.
Bashir Isse, also known as Bashir Issa Ali, is a Somali banker. He previously served as the CEO of the Commercial and Savings Bank of Somalia, and as both the Deputy Governor and Governor of the Central Bank of Somalia. As of April 2014, he is the Central Bank's permanent Governor.
The Salaam Bank (SB) is a bank headquartered in Bosaso, the city of Bari region in North west Somalia.
The (IBS) is an IBS Bank headquartered in Mogadishu, Somalia.
Bandhan Bank Ltd. is a banking and financial services company, headquartered in Kolkata. Bandhan Bank is present in 35 out of 36 states and union territories of India, with 6,250 banking outlets and 3.26 crore customers. Having received the universal banking licence from the Reserve Bank of India, Bandhan Bank started operations on August 23, 2015, with 501 branches, 50 ATMs and 2,022 Banking Units (BUs). The Bank has mobilised deposits of ₹1,17,422 crore and its total advances stand at ₹1,15,940 crore as of December 31, 2023.
Yetu Microfinance Bank Plc. (YETU) is a microfinance bank in Tanzania. It is the first microfinance institution to be listed in the Dar es Salaam Stock Exchange. Yetu is a Swahili word which means Ours.
The Dara-Salaam Bank (DSB) is a bank headquartered in Hargeisa, the capital of Somaliland.
The Hormuud Salaam Foundation (HSF) is a charitable organization fully funded by Hormuud Telecom, Salaam Somali Bank, Taj Money Transfer, and Buruj Construction Company. HSF, based in Mogadishu, Somalia, was founded in 2013.
