HARGEISA, Somaliland — (Horn post) In a major step toward deepening economic ties, Taiwan’s Central Deposit Insurance Corporation (CDIC) and the Bank of Somaliland have officially signed a Memorandum of Understanding (MoU) aimed at strengthening Somaliland’s financial system, improving deposit insurance mechanisms and boosting long-term banking sector stability.
The agreement, announced jointly by the Taiwan Representative Office in Hargeisa and the Central Bank of Somaliland, marks one of the most significant financial cooperation deals ever signed between the two partners as both governments expand strategic diplomatic and economic relations.
Taiwan said its growing engagement with Somaliland has already helped the country secure membership in the International Association of Deposit Insurers (IADI) in September 2025, making Somaliland an associate member of the global financial organization that brings together central banks and financial supervisory authorities worldwide.
Taiwan described the achievement as the first international financial organization that Taiwan has helped Somaliland join, calling it a major breakthrough designed to strengthen Somaliland’s financial credibility and institutional stability.
“Taiwan-Somaliland relations are built on friendship, leadership and partnership. We look forward to transforming this partnership into prosperity and long-term stability through joint efforts,” Taiwan officials said in a statement released from Hargeisa.
The official signing ceremony took place on June 18, 2026, with senior financial officials from both sides participating, including Bank of Somaliland Governor Abdinasir Ahmed Hirsi, CDIC Chairman Tien-Mu Huang, Somaliland Representative to Taiwan Ambassador Mahmoud Adam Jama (Galaal) and Taiwan Representative to Somaliland Ambassador Allen Chenhwa Lou.
In a statement, Somaliland’s Central Bank said the agreement represents a critical step toward building a modern financial system by strengthening deposit insurance protections for citizens, improving confidence in local banking institutions and expanding technical cooperation between the two sides.
Officials said the MoU will help Somaliland develop stronger financial safeguards, modernize banking regulations and protect customer deposits while aligning the country’s financial sector with international standards.
Somaliland authorities added that the partnership is expected to open new opportunities for financial development, increase investor confidence, strengthen banking resilience and support broader efforts to build a sustainable modern economy capable of attracting both domestic and foreign investment.
The agreement is being viewed as another major milestone in the rapidly expanding Taiwan-Somaliland partnership, which increasingly spans diplomacy, development cooperation, economic reform and international institutional engagement.
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Prepared by:
Horn post staff
Hargeisa, Somaliland
