TAIPEI — Somaliland has secured associate membership in the International Association of Deposit Insurers (IADI), a move officials hailed as a breakthrough for the Republic of Somaliland’s efforts to integrate into the global financial system.
The decision was approved last week during an IADI Executive Council meeting in Taipei, coinciding with the body’s annual conference and the 40th anniversary of Taiwan’s Central Deposit Insurance Corporation.
“This recognition marks a significant milestone for Somaliland,” Central Bank Governor Abdinasir Ahmed Hersi said in a statement issued from Taipei. “It validates our country’s unwavering commitment to building a sound, transparent, and resilient financial sector, one that upholds international standards of governance and inspires confidence both at home and abroad.”
Based in Basel, Switzerland, the IADI brings together more than 100 deposit insurers worldwide, providing technical support in policy design, regulation, and financial safety nets. For Somaliland — which remains unrecognized internationally and cut off from many global banking systems — the associate membership offers a rare foothold in formal financial networks.
Hersi said the move would strengthen the Central Bank’s ability to “integrate into international financial systems” and prepare Somaliland for broader participation in cross-border trade and investment.
Expanding the Taiwan Partnership
The announcement also underscored Somaliland’s deepening ties with Taiwan, another democracy that struggles with diplomatic isolation. During his visit, Hersi is scheduled to meet officials from Taiwan’s central bank, financial regulators, and foreign ministry to advance what he described as a “strategic economic partnership.”
“Our partnership is not just bilateral,” Hersi said. “It is a statement to the world that two democracies, though unrecognized in some international forums, can chart their own course of cooperation, mutual respect, and shared progress.”
According to the Central Bank, discussions in Taipei will focus on training programs, staff exchanges, and regulatory guidance, as well as building the technical backbone of Somaliland’s financial sector. Areas of cooperation include cybersecurity, payment platforms, and the country’s long-delayed integration with the SWIFT international banking system.
The talks build on a growing record of collaboration between the two territories. Since opening reciprocal representative offices in 2020, Somaliland and Taiwan have signed agreements on agriculture, health, education, information technology, and, most recently, coast guard cooperation. Taiwan has also provided support for Somaliland’s hospitals and wildlife conservation efforts.
Economic Ambitions in a Strategic Region
For Somaliland, the IADI membership is tied to a broader vision of economic transformation. Hersi said a stronger financial system would underpin growth, attract investors, and extend banking services to a wider share of the population.
“A modern, well-regulated financial system will further consolidate Somaliland’s role as a reliable partner for global trade and financial stability,” he said.
That ambition rests heavily on geography. Somaliland controls a stretch of the Gulf of Aden along the Bab al-Mandab Strait, a chokepoint where an estimated 21 percent of world trade and 12 percent of energy shipments pass each year. With the expansion of the Berbera Port, a new free trade zone, and a transport corridor linking to Ethiopia, officials argue that Somaliland is well placed to become a commercial hub in the Horn of Africa.
A Symbolic Win
The membership also carries symbolic weight for Somaliland, which has functioned as a de facto independent state since 1991 but remains unrecognized by the United Nations. The breakthrough in Taipei was quickly celebrated online by Somaliland officials and supporters, who cast it as evidence of the territory’s growing ability to win international partners despite diplomatic obstacles.
Hersi used the occasion to congratulate Taiwan’s deposit insurance corporation on its 40th anniversary, calling the institution a model of “financial resilience.” He acknowledged that Somaliland still faces significant hurdles but insisted that momentum is on its side.
“With determination and the support of our partners in Taiwan and beyond,” he said, “I am confident we will build a stronger, more inclusive, and globally connected financial system for Somaliland.”
Read the full press release below:
For Immediate Release
Taipei, 12 September 2025
Somaliland Granted Associate Membership in IADI; Strengthens Ties with Taiwan in Banking, Finance, and Trade
I am honored to announce that the Bank of Somaliland has been officially approved as an Associate Member of the International Association of Deposit Insurers (IADI). This historic decision was made during the IADI Executive Council meeting held in Taipei on 11 September 2025, alongside the IADI Core Principles International Conference and the 40th Anniversary celebrations of the Central Deposit Insurance Corporation (CDIC).
This recognition marks a significant milestone for Somaliland. It validates our country’s unwavering commitment to building a sound, transparent, and resilient financial sector, one that upholds international standards of governance and inspires confidence both at home and abroad.
I wish to extend my deepest gratitude to the Executive Council of IADI for this decision, which not only strengthens Somaliland’s place in the global financial community but also opens the door for further integration into international systems. With IADI’s technical support in policy development, regulatory best practices, and deposit insurance expertise, I am confident the Bank of Somaliland will advance its institutional capacity and deliver on its mandate more effectively.
Upcoming Bilateral Engagements in Taipei
During my stay in Taipei, I will also hold high-level meetings with the Central Bank of Taiwan, the Financial Supervisory Commission (FSC), the Central Deposit Insurance Corporation (CDIC), and the Ministry of Foreign Affairs.
These discussions will focus on areas of mutual interest in economic and trade cooperation, and how Taiwan’s institutions can support the modernization and strengthening of Somaliland’s financial system.
Key areas of cooperation include:
Capacity Building and Technical Support: Establishing training programs, exchanges of expertise, and staff secondments to strengthen the institutional capacity of the Bank of Somaliland.
Financial Technology Infrastructure: Assistance in developing critical infrastructure, such as IT systems, cybersecurity frameworks, servers, core banking platforms, national switching, and payment systems.
Policy and Regulatory Framework Development: Guidance on the design and implementation of effective policies, supervisory practices, and regulatory frameworks to ensure a sound, stable, and inclusive financial sector.
International Payment Systems and SWIFT Integration: Support in addressing Somaliland’s challenges with international payments by facilitating access to settlement systems, SWIFT integration, and secure cross-border payment channels.
Somaliland’s Broader Vision
I firmly believe that by strengthening our central bank and modernizing our financial sector, Somaliland will be better positioned to achieve sustainable economic growth and safeguard financial stability. A resilient financial system will also enable us to attract investment, promote trade, and enhance financial inclusion for our citizens.
Somaliland’s geostrategic position makes this effort even more significant. Located on the Gulf of Aden, near the Bab al-Mandab chokepoint—through which over 21% of global trade and 12% of global energy supplies pass—Somaliland is emerging as a hub for trade and logistics in the Horn of Africa. Major projects such as the Berbera Port, the Berbera Economic Free Zone, and the Berbera–Ethiopia Corridor highlight our growing role in regional commerce.
A modern, well-regulated financial system will further consolidate Somaliland’s role as a reliable partner for global trade and financial stability.
Commitment to Partnership with Taiwan
I take special pride in recalling that I was among the pioneers who initiated the Somaliland–Taiwan relationship in 2019. Since then, our partnership has flourished, built on trust, shared values, and mutual aspirations.
Today, I reaffirm my commitment to deepening this relationship. I look forward to working closely with Taiwan’s institutions in banking, finance, and economic development, and I am hopeful that together we can overcome the diplomatic challenges that both our nations face.
Our partnership is not just bilateral—it is a statement to the world that two democracies, though unrecognized in some international forums, can chart their own course of cooperation, mutual respect, and shared progress.
Closing
I once again congratulate the Central Deposit Insurance Corporation on its 40th anniversary. Your achievements in safeguarding deposits, building public confidence, and enhancing financial resilience serve as an inspiration for us in Somaliland.
The journey ahead will not be without challenges, but with determination and the support of our partners in Taiwan and beyond, I am confident we will build a stronger, more inclusive, and globally connected financial system for Somaliland.
Abdinasir Ahmed Hersi
Governor
Bank of Somaliland
