SOMALIA: FINANCIAL PUZZLE (Available from 1st Dec 2025.)

About The Book

This study traces the remarkable story of Somalia’s financial sector, from its state-led banking experiments of the 1960s and 1970s to the improvised monetary order that emerged after the collapse of central authority in the early 1990s. In the absence of a functioning central bank or national currency management for nearly two decades, Somali society relied on informal systems-most notably hawala networks-that not only kept commerce alive but also connected Somali households to their global diaspora.

Today, Somalia’s financial landscape is marked by a paradox: fragile institutions coexist with vibrant private initiatives, while international remittances provide both lifeline and leverage in shaping economic policy. The study explores how local actors, commercial banks, mobile money platforms, and the reconstituted Central Bank of Somalia navigate the competing demands of monetary stability, regulatory compliance, and global integration.

Written with clarity and depth, the study combines historical insight with contemporary analysis. It shows how questions of trust, resilience, and adaptation continue to define the Somali financial system, raising questions and offering lessons that resonate far beyond the Horn of Africa.

Essential reading for scholars, policymakers, and development practitioners, this work provides a rare window into how a nation without a fully functioning state has nonetheless sustained one of the world’s most dynamic and unconventional financial systems.