Ethiopia to Launch State Bank Operations in Somaliland

[Deeq A.]

Ethiopia and Somaliland have agreed to explore closer financial cooperation, including the possible establishment of a branch of Ethiopia’s state-owned Commercial Bank in Somaliland.

Abdinasir Ahmed Hersi, governor of Somaliland’s central bank, and Mamo Mihretu, governor of National Bank of Ethiopia, met in Addis Ababa on Saturday to discuss collaboration on payments and settlement systems, foreign exchange and trade financing, FinTech licensing, and anti-money laundering measures.

Both sides agreed to form a joint technical working group to follow up on the initiatives. Governor Hersi highlighted the strategic role of Somaliland’s Berbera Port and its trade corridor for Ethiopian commerce, urging swift progress on banking and insurance frameworks to support port operations. Governor Mihretu welcomed the plan and said the matter would be raised with Ethiopia’s Ministry of Foreign Affairs.

Officials also discussed formalising financial flows, regulating khat trade across the border, and enhancing banking access for regional businesses. The central banks pledged to continue collaboration to support economic growth and strengthen regional stability.

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