By: Yitbarek Tekalign
In the heart of Jigjiga, the vibrant capital of Ethiopia’s Somali Regional State, stakeholders from across government institutions, financial entities, academia, and civil society organizations came together at the Lotus Hotel for a landmark consultative meeting on financial inclusion. Hosted by the Gudina Tumsa Foundation (GTF) under the Health and Livelihood Improvement Advocacy Project in Somali (HaLIAPS) and backed by the Gates Foundation, the session marked a significant step in transforming research into actionable policy.
The event opened with a warm welcome by Mr. Iyobed Yonas, Program Director at GTF. “This research report is prepared as part of the policy advocacy activities of HaLIAPS. What makes this project unique,” he emphasized, “is its focus not on service delivery but on generating evidence and shaping policy to serve women, smallholder farmers, and pastoralist communities.”
The GTF-led study, meticulously conducted over several months, presented a sobering yet hopeful picture of financial inclusion in Somali Region. According to Dr. Mabratu Negera, GTF’s Research Officer and lead presenter, only 33% of rural households own a financial account, far below the national average of 46%.
“Financial inclusion,” Dr. Mabratu noted, “is not merely about owning a bank account. It is about meaningful access, usage, and trust, areas where gaps remain wide.”
The study uncovered both systemic and behavioral barriers: lack of documentation, religious incompatibility of financial products, limited infrastructure, and alarmingly low levels of financial literacy. For example, nearly 56% of rural residents cited a lack of financial awareness as their primary barrier. As one respondent shared during a key informant interview: “Illiteracy results in a lack of trust and awareness regarding Islamic finance services. Many are excluded simply because they don’t understand.”
In his keynote address, Mr. Mohammed Hassen Jibril, representative from the Office of the Somali Regional President, reinforced the regional government’s commitment to financial inclusion. “This research was not done in isolation,” he remarked, “but in partnership with institutions on the ground to ensure cultural relevance and practical utility. The findings are not just numbers, they reflect lived realities.”
He added, “With the launch of the Somali Regional Financial Inclusion Framework (2024–2026) we have a clear roadmap that prioritizes Sharia-compliant finance, agent-based delivery, and gender-responsive models. But to achieve real change, we must validate and act upon these findings together.”
Participants engaged in lively group discussions guided by key questions. Recommendations emerging from the consultation included expanding mobile-enabled Sharia-compliant agent banking, strengthening financial literacy initiatives, and accelerating the FAYDA Digital ID system, which is seen as a game-changer in easing documentation hurdles.
The meeting concluded with a call to action: for inclusive development to take root, policies must be shaped not from the top down but from the grassroots up. Or as Mr. Iyobed reminded participants: “Policies become more favorable when they are grounded in evidence and informed by the people they are meant to serve.”
With its blend of rigorous research, inclusive dialogue, and shared commitment, the consultative meeting marked more than a milestone, it lit a path toward inclusive success in the Somali Regional State.
