Mogadishu – The Ziraat Katilim Bank of Türkiye has inaugurated its first branch in Somalia, marking the first time in more than half a century that an international bank has established operations in the country.

According to a news release by the Somali National News Agency, the official inauguration and operationalization of the Ziraat Katilim Bank’s Somalia branch took place on October 29, 2023. The move is expected to enhance economic opportunities and trade relations between the Federal Government of Somalia and its trading partners, including the Republic of Türkiye.

The CBS Board of Directors granted the license to Ziraat Katilim Bank of Türkiye to establish the branch on July 2, 2022, after an extensive application process. Ziraat Katilim is a state-owned participation bank and a member of the Ziraat Finance Group. The group operates in 20 different countries and has 15 subsidiaries and 27 branches abroad. The Somalia branch is expected to offer a wide array of corporate banking services, catering to businesses, international institutions, and development partners.

Abdirahman Mohamed Abdullahi, the Governor of CBS, commented on the development, stating that the new branch serves as proof of the successful reforms in Somalia’s finance sector and offers new avenues for investment and economic development. He highlighted that this is a historic occasion, as Ziraat Katilim is the first international bank to operate in Somalia for more than 50 years. He anticipates that the new bank will contribute significantly to the growth of Somalia’s financial sector and its overall economy.

CBS reiterated its commitment to encouraging inclusive economic growth in Somalia and to building a robust and stable financial system.