Somalia Builds Financial System on Mobile Money Before Banks

Years of conflict left Somalia with a limited branch-banking network, allowing telecommunications companies to assume functions normally performed by financial institutions. Mobile wallets such as Hormuud Telecom’s EVC Plus now enable households and businesses to store money, transfer funds and pay merchants electronically. Their widespread use in commerce, remittances and humanitarian aid shows how fintech can expand financial inclusion without waiting for conventional banking infrastructure to mature.

The Fintech Times reported on July 27, 2026, that the International Monetary Fund projects Somalia’s economy at about $13.6 billion this year, with GDP per capita near $760. The Central Bank of Somalia is pursuing payment-system, financial-inclusion and anti-money-laundering reforms with support from the IMF and World Bank. Banks and payment providers are meanwhile exploring digital savings, SME finance, government payments and interoperability, building formal services around mobile-money networks already trusted by consumers.