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MOGADISHU – The National Climate Fund under the Ministry of Finance of the Federal Government of Somalia, in cooperation with the Somali Bankers Association, concluded a specialized three-day training workshop aimed at strengthening the capacities of local banks and insurance companies and enabling them to participate more effectively in the climate financing system. The initiative supports Somalia’s efforts to address the impacts of climate change and advance sustainable development pathways.
The workshop was held as part of growing national efforts to enhance the role of the financial sector in addressing environmental challenges, at a time when Somalia is experiencing increasing impacts of climate change, including recurring droughts, floods and their direct effects on economic sectors and local communities. Through such initiatives, national institutions seek to develop sustainable financial solutions that expand private sector participation in climate adaptation projects and strengthen resilience.
The training represented the second phase of a programme launched by the National Climate Fund in December 2025, aimed at building the capacity of Somali financial institutions and familiarizing them with international climate financing mechanisms. The programme also seeks to transform climate-related initiatives into viable investment projects, enhancing Somalia’s opportunities to access global financial resources dedicated to addressing climate change impacts.
The programme brought together representatives from Somali commercial banks and insurance companies, alongside experts and specialists in business development, risk management, credit, sustainability and project financing. Participants received training on the global climate finance system, the mechanisms of the Green Climate Fund, procedures for preparing investment-ready projects and requirements for accessing international financing through qualified national institutions.
The workshop also discussed the importance of developing financial instruments suitable for the Somali economy, particularly given the growing role of Islamic banking within the local financial system. Sessions explored Sharia-compliant climate financing models, including Murabaha, Ijarah, Sukuk, Musharakah, grants, concessional financing, guarantees and blended finance, as well as opportunities to develop green financial products that support sustainable projects.
The Chief Executive Officer of the Somali Bankers Association, Dr. Ahmed Khader Abdi Jama, emphasized that the Somali banking sector has the capacity to play a greater role in financing climate-related projects and strengthening the country’s ability to address environmental challenges. He noted that the training provided an important opportunity to enhance local financial institutions’ understanding of international climate finance mechanisms and build stronger partnerships with global climate funds and financial institutions.
The Executive Director of the National Climate Fund, Liban Absi, stressed that improving the readiness of Somali financial institutions represents a key step toward attracting climate investments and supporting long-term national development objectives. He affirmed that the Fund will continue working with the Somali Bankers Association to develop a financial sector capable of supporting a more resilient and sustainable Somali economy and transforming climate finance into an effective tool for addressing risks and advancing development.
It is worth highlighting that Somalia is facing increasing climate challenges that have made the development of sustainable financing mechanisms a national priority. Recurring droughts and floods in recent years have affected vital sectors, including agriculture, livestock and natural resources, while creating significant economic and humanitarian pressures on local communities.
With the growing need for financial resources to support adaptation projects and reduce the impacts of climate change, strengthening the capacity of national financial institutions has become an important pathway for enabling Somalia to access and effectively manage international climate finance. The engagement of the banking sector in this field reflects a significant shift toward broader national partnerships involving the government, financial institutions and the private sector, with the aim of building a more resilient economy capable of facing climate challenges and achieving sustainable development for current and future generations.
