Monday July 27, 2026
Mogadishu (HOL) — The Central Bank of Somalia has announced plans to expand the Somalia Instant Payment System (SIPS) to connect commercial banks, mobile money services and regional payment networks through a single interoperable infrastructure.
Central Bank Governor Abdirahman Mohamed Abdullahi said this week the plan supports the modernization of Somalia’s financial infrastructure and the growth of a digital economy.
“Somalia’s payment systems ran separately from one another for years, with banks and mobile money operators working on closed networks that could not transfer value between them, which raised costs and left many people outside the formal financial system,” Abdullahi said.
For years, Somalia’s payments landscape was fragmented, with banks and mobile money operators running closed-loop systems that prevented seamless transfers across providers.
In 2021, the Central Bank connected commercial banks through the National Payment System for large-value transfers, enabling real-time gross settlement and automated clearing of interbank transactions.
However, officials said the system did not fully address the need for 24-hour infrastructure capable of supporting everyday retail payments.
The Somalia Instant Payment System (SIPS) was launched in January 2025 and is built on ISO 20022 standards.
The system enables instant, interoperable payments across participating institutions.
When fully integrated, SIPS is expected to connect 14 commercial banks and eight mobile money and e-wallet providers through a single network.
The system supports person-to-person transfers, merchant payments, payments to government and government disbursements to citizens.
Business-to-person, business-to-government and business-to-business services are also being developed.
Officials said SIPS’ integration with SOMQR, Somalia’s standardized QR code, will make digital payments easier for merchants, including informal businesses that drive much of the country’s daily commerce.
The Somalia Payment Switch, which operates SIPS, was established as a partnership between the Central Bank and 13 commercial banks.
Abdullahi said the next priority is integrating mobile money operators, which serve most Somalis in their daily financial transactions.
“Once connected, the real scale of this system will become visible, making every Somali with a mobile wallet part of the same interoperable network and turning SIPS into a powerful engine of financial inclusion,” he said.
Abdullahi emphasized Somalia also intends to link its payment infrastructure to regional and continental systems.
“As the newest member of the East African Community, we intend to contribute to modern regional payment infrastructure,” he said. “We are also working to connect SIPS to the Pan-African Payment and Settlement System before the end of 2026.”
He said payment efficiency is an economic, social and strategic priority for Somalia, where remittances remain a major source of household income.
Finance Minister Bihi Egeh commended the Central Bank governor Abdirahman M. Abdullahi for the steady leadership in advancing financial reforms and building a modern, interoperable financial system.
“The establishment of Somalia Instant Payment System is a strategic investment in the financial architecture of our nation, enhancing efficiency, strengthening transparency, promoting financial inclusion and supporting a more integrated and competitive economy,” Egeh wrote on X.
He said reforms in the financial sector, economic governance, business environment and investment climate are laying the institutional foundations for sustainable growth, resilience and shared prosperity.
Egeh underscored sustained reform remains the surest path to unlocking Somalia’s economic potential.