With the ongoing digital transformation, instant payment systems are emerging as key solutions to ensure fast, secure, and accessible transactions. They are essential for modernizing economies and providing more efficient and inclusive banking services.

Somali Prime Minister Hamza Abdi Barre on Wednesday launched the Somali Instant Payment System (SIPS). Developed jointly by the Central Bank of Somalia (CBS) and the Somali Bankers Association, SIPS is designed to facilitate instant, secure, and transparent transactions between local banks.

“For our country to rebuild, we must support the private sector and investment. We are preparing laws to safeguard people’s finances, prevent terrorist funding, and implement government plans that are central to the security, economy, and development of Somali society” said Hamza Abdi Barre during the launch event.

SIPS serves as a centralized platform connecting the CBS and local private banks, enabling real-time money transfers between financial institutions. The system aims to reduce interbank payment delays, eliminate inefficiencies, and minimize the risks associated with cash transactions, which remain prevalent in the country. Key stakeholders include the CBS, which oversees and regulates the system, and private banks, which act as access points for businesses and individuals.

The launch comes as Somalia pursues economic recovery, seeking to modernize its financial infrastructure and promote the digitization of services. By implementing a modern payment system, the Somali government aims to boost investor confidence, strengthen efforts to combat illicit financial practices, and enhance transparency in financial transactions.

With SIPS, Somalia enters a new economic era. The system is expected to not only improve banking efficiency and enhance the competitiveness of local businesses but also contribute to overall economic growth. It paves the way for inclusive prosperity for Somali citizens and lays the foundation for a resilient and innovative economy.

By Samira Njoya,

Editing by Sèna D. B. de Sodji