MOGADISHU, Somalia — MyBank, a Somali commercial bank, has launched a gold-backed financing program aimed at expanding access to formal credit for women who have struggled to obtain loans because they lack titled property or acceptable personal guarantors.
The initiative, called ISKUFILAN, allows eligible women to use verified gold jewelry as collateral for financing while retaining ownership of the jewelry. The bank says the program is intended to bring more women into Somalia’s formal financial system and provide capital for businesses, household needs and other expenses.
MyBank estimates that only about 10 percent of Somali women currently have access to formal financing, despite women making up nearly half of the country’s population.
“ISKUFILAN is about unlocking the economic potential that already exists within Somali households,” Abdulrazak Mohamed Ahmed, MyBank’s chief executive, said in a statement. He said the program would give women an opportunity to use existing assets to build businesses, support their families and strengthen their financial independence.
According to the bank, about one million Somali women could collectively own roughly 20 metric tons of gold jewelry, which MyBank estimates could be worth nearly $3 billion. The bank said much of that wealth is not currently being used as collateral within the formal financial system.
The program is designed to address a common obstacle to borrowing in Somalia, where conventional lending may require property or a personal guarantor. Under ISKUFILAN, gold jewelry is assessed for purity, weight and market value before being accepted as collateral.
Applicants must provide government-issued identification and pass the bank’s credit and compliance assessments. Eligible jewelry must be 21-, 22- or 24-karat gold. MyBank said each item will be photographed and accompanied by a valuation certificate to create a record of the pledged asset.
Financing periods will range from six to 48 months, with loans available for up to the full verified market value of the pledged gold, according to the bank.
The jewelry will be sealed in tamper-evident packaging and stored in a high-security, fire-resistant vault, with regular audits of the pledged assets. Customers will be able to make repayments through MyBank branches and digital banking channels.
Once the financing is repaid, the jewelry will be returned to its owner. If a borrower defaults and the collateral must be sold after the required procedures have been followed, MyBank said any surplus remaining after repayment of the outstanding debt and eligible costs would be returned to the customer.
The bank said the program includes measures intended to protect borrowers, including transparent valuation, affordability assessments, informed consent, data protection, complaints procedures and safeguards against fraud.
MyBank also said ISKUFILAN could provide an entry point into formal banking for women who have never previously borrowed from a regulated financial institution. Building a credit history could, in turn, give borrowers access to additional financial and digital banking services.
The financing can be used for business activities as well as needs such as education and health care, allowing borrowers to raise funds without permanently selling their jewelry.
Ahmed described the program as more than a lending product, saying it was intended to convert household assets into productive capital and expand women’s participation in the formal economy.
The initiative comes as Somalia seeks to broaden financial inclusion and strengthen access to capital for small businesses, particularly among groups that remain underserved by traditional lending practices.
MyBank said the program also supports several United Nations Sustainable Development Goals, including those focused on poverty reduction, economic growth, innovation and reducing inequality.
