In the Horn of Africa States region, the banking and financial sector operates within a complex and frequently fragile environment, shaped by heterogeneous economic structures, varying state capacities, and persistent political and security challenges. Within this context, the financial sector has shown notable areas of progress and resilience, while simultaneously facing deep-rooted structural, institutional, and macroeconomic constraints that limit its ability to drive inclusive growth and long-term development.

A key development in this industry has been the expansion of financial inclusion through mobile money and digital financial services, and in particular in countries like Somalia and Djibouti. These platforms are central to everyday economic life allowing individuals and businesses to make payments, transfer funds and store value without relying on traditional banks. 

One must note that physical bank presence is not as wide as in many other countries and therefore digital finance has narrowed the gaps between urban and rural societies and especially where populations are widely dispersed and formal bank presence is limited. Through technology, financial services are now reaching populations which would........

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