Examining the Impact of Regulatory Frameworks on the Business Environment
The Somali Bankers Association (SBA) recently hosted its highly anticipated Forum, SBA Forum 2025,
on 21st January 2025, themed “Analyzing the Impact of Regulatory Frameworks on the Business Environment.” The event brought together senior officials and experts, including The State Attorney General of Somalia and renowned specialists in commercial law. The discussion focused on the role of legal frameworks in fostering a conducive business environment, the challenges faced, and potential opportunities for improving regulatory systems.
The symposium concluded with key recommendations aimed at strengthening legal systems to promote transparency, efficiency, and trust in the country’s business sector.
financial experts, policymakers, and business leaders to explore the evolving legal landscape and its implications on Somalia’s economic growth and business operations.
Key Discussions and Insights
SBA Forum 2025 featured distinguished speakers, including Dr. Osman Elmi Guled, the Somali State Attorney General; Mr. Guleid Osman Mohamed, Financial Institution Specialist; and Mr. Muse Ahmed Hersi, International Commercial Lawyer.
These esteemed experts provided in-depth analysis on the current regulatory environment and its role in shaping the country’s financial and business sectors.
Dr. Osman Elmi Guled highlighted the necessity of a dynamic regulatory framework to ensure financial stability and investor confidence. He emphasized the importance of legal clarity in attracting foreign investment and enabling the private sector to thrive within a well-defined legal structure.
Mr. Guleid Osman Mohamed examined the challenges faced by financial institutions in navigating compliance requirements, emphasizing the role of the Central Bank of Somalia as the primary regulatory authority guiding the financial landscape. He stressed the need for regulatory bodies to create an enabling environment that balances oversight with business flexibility. According to him, modernizing financial regulations and streamlining compliance will foster a more resilient and competitive banking sector.
Mr. Muse Ahmed Hersi, International Commercial Lawyer, offered a global perspective on commercial regulations, comparing Somalia’s regulatory framework with international best practices. He underscored the importance of aligning domestic laws with international financial standards to facilitate trade, enhance transparency, and attract multinational partnerships.
Impact on the Business Community
The forum shed light on how regulatory frameworks directly influence economic growth, ease of doing business, and financial sector development. Mr. Ahmed Shirwac Mohamed, the Chairman of SBA in attendance expressed the need for continuous dialogue between the private sector and regulators to address challenges, minimize bureaucratic bottlenecks, and ensure that policies support rather than hinder entrepreneurship and innovation.
Several key recommendations emerged from the discussions:
- Strengthening institutional capacity to enforce regulations effectively.
- Enhancing digital banking and fintech regulations to adapt to the evolving financial landscape.
- Ensuring legal reforms are inclusive, transparent, and in line with international banking norms.
Conclusion
The SBA Forum 2025 successfully facilitated a much-needed conversation on the intersection of regulatory policies and business growth in Somalia. The insights shared by industry experts and legal professionals provided a clearer roadmap for policymakers and financial institutions to collaborate in fostering a stable, transparent, and investment-friendly business environment.
As Somalia continues its journey towards economic transformation, events like this serve as a crucial platform for shaping policies that will drive sustainable development and financial inclusion. The Somali Bankers Association remains committed to leading these discussions and ensuring a regulatory landscape that benefits both businesses and consumers alike.
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