The new law strengthens the governance, transparency, and operations of the national development bank.
Somalia has enacted a law strengthening the Somali Development and Reconstruction Bank. The law enhances the bank's governance, transparency, and operations.
The Act was enacted to support the bank's role in financing national reconstruction and development. Its purpose is to improve oversight of the bank, strengthen its governance, and enable it to operate effectively and transparently.
The Law on the Somali Development and Reconstruction Bank was enacted and entered into force on June 24, 2014.
A development bank can play a central role in financing reconstruction and economic growth, provided it is well governed. This law was designed to strengthen Somalia's development bank.
The law strengthens the governance arrangements of the Somali Development and Reconstruction Bank, clarifying how it is overseen and managed.
It enhances transparency in the bank's operations, supporting accountability in how it uses and allocates funds.
The law addresses the bank's operational framework, helping it function effectively as an instrument of development finance.
By improving governance and oversight, the law aims to enable the bank to support reconstruction and development with greater confidence and integrity.
This law is important because it strengthens an institution central to financing Somalia's reconstruction and development. Better governance, transparency, and oversight help the development bank operate effectively and accountably. A well-run development bank can mobilise finance for infrastructure, business, and economic growth.
“A development bank is only as effective as its governance is sound. By strengthening oversight and transparency, this law helps the Somali Development and Reconstruction Bank serve its mission with integrity. Disciplined governance and prudent lending will determine how well it supports national reconstruction.”
, Hawa A. Wehelie, JD (Juris Doctor), MBA (Master of Business Administration)
Managing Partner at Mogadishu Law Office
This release is provided for general information and does not constitute legal advice. Professional legal advice should be obtained before acting on any matter discussed here.