The African Development Bank Group has reaffirmed its support for Somalia’s shift from aid dependence towards sustainable, private sector-led growth, backed by stronger domestic institutions and greater mobilisation of long-term development finance.
The Bank gave this assurance at the Somali Development Finance Forum, convened in Mogadishu on 19 September by the Somali Development and Reconstruction Bank (SDRB) under the theme, “Financing Somalia’s Next Chapter: From Recovery to Sustainable Development.” First created in 1968 and re-established in 2014, the Somali Development and Reconstruction Bank is Somalia’s national development finance institution.
Speaking during the opening session, the President of Somalia, Hassan Sheikh Mohamud said,
“The Federal Government of Somalia is committed to advancing development finance that takes a long-term view – creating sustainable markets, strengthening the private sector and directing investment toward the productive sectors that will drive Somalia’s future growth.”
Somalia’s Deputy Prime Minister, Salah Jama, argued that the country’s development finance transition requires building domestic capacity rather than simply seeking to replace aid. He outlined a financing model capable of mobilising sustainable public and private investment in sectors including agriculture, livestock, fisheries, renewable energy and small and medium-sized enterprises.
Speaking on a panel on strengthening Somalia’s development finance architecture, African Development Bank Director General for East Africa, Alex Mubiru, called for a more disciplined investment pipeline and greater use of risk-mitigation instruments to unlock private capital.
“Somalia’s sustainable development requires strong institutions that can mobilise long-term finance, attract private-sector investment, reduce perceived risks, and develop bankable investment pipelines that support job creation and lasting impact,” he said.
Mubiru also urged Somalia to focus its resources on a few high-potential value chains that can create jobs, strengthen local production and deliver lasting development impact.
SDRB enters a new era
During the Forum, the SDRB signed financing partnership agreements with Asal Microfinance, Maal Microfinance and Himilo Microfinance under its Ramad Microfinance Programme, to expand access to Sharia-compliant financing for micro, small and medium-sized enterprises and productive sectors.
President Mohamud said, “Today marks a historic moment. A public development bank in Somalia making its first investment is a clear sign of the progress our country is making in rebuilding its institutions and advancing its economic development.”
The African Development Bank Group’s participation in the Somali Development Finance Forum builds on its longstanding partnership with Somalia, and the priorities in its Country Strategy Paper 2025–2030.
These priorities aim to strengthen the foundations for productive investment, private-sector development, economic resilience, and employment. Strengthening institutions such as SDRB forms part of the broader effort to help Somalia build the financial architecture, investment pipelines and partnerships required to translate development finance into productive investment, jobs and sustainable economic growth.
African Development Bank Group.