UNDP, Visa partner to boost digital transformation and financial inclusion

Somalia is next on the list of countries that are set to receive an injection of support to boost digital transformation and financial inclusion as the United Nations Development Programme (UNDP) and Visa have announced a new partnership.

Officially announced on the sidelines of the UN General Assembly in New York on September 25, 2024, the goal of the collaboration is to enhance access to digital financial services for individuals and small businesses across the country, in a bid to contribute towards economic growth and stability.

Earlier in September, a Memorandum of Understanding (MoU) was signed between Lionel Laurens, UNDP resident representative, and Aida Diarra, senior vice president and head of Sub-Saharan Africa at Visa.

The MoU outlines a collaborative framework between UNDP Somalia and Visa Inc. to promote digital financial services for Somali Micro, Small, and Medium Enterprises (MSMEs) and citizens, with a focus on underserved and vulnerable populations. This initiative aims to enhance public services, digitize government systems, and improve financial literacy for Somali MSMEs and individuals.

According to UNDP, it will involve the joint development of both short- and long-term programs to strengthen the capacity of national stakeholders, with particular emphasis on private sector entities and key institutions, including the Central Bank of Somalia and the National Identification and Registration Authority (NIRA). A specific area of support will be the expansion of the Somali digital national ID project in partnership with NIRA.

As part of the upcoming joint program between UNDP and Visa, there will also be an initiative aimed at advancing digital payments and financial services, particularly targeting MSMEs, as well as youth and women entrepreneurs. This goes hand in hand with Somalia’s biometric identity card system launched last year.

“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,” says Laurens.

“I strongly believe our new partnership with Visa will play a catalytic role in leveraging cutting-edge digital innovative solutions for the public and the private sector to address some of the persistent challenges facing Somalia. We hope many Somali people will benefit from this cooperation through enhanced access to digital financial services and public service delivery.”

The partnership is set to also contribute to the development of an e-government infrastructure, in line with Somalia’s national transformation plan.

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Africa  |  digital ID  |  digital public infrastructure  |  financial inclusion  |  National Identification and…