The Federal Government of Somalia and the Somaliland administration have made significant strides in establishing and expanding state-issued identity documentation systems, with growing attention to how these documents are recognized within the private sector. For forcibly displaced persons (FDPs)—including internally displaced persons (IDPs) and refugee-returnees—the acceptance of identity documents by banks, telecom operators, and other private service providers plays a crucial role in enabling access to financial services, mobile money platforms, and economic participation.

Somalia:

In 2023, Somalia launched its National Identification and Registration Authority (NIRA), which has begun issuing National Identification Numbers (NINs) linked to biometric data for citizens. This initiative aims to create a centralized, secure, and verifiable identity system that facilitates access to public and private services. In August 2024, NIRA signed a Memorandum of Understanding (MoU) with the Somali Banks Association to integrate the NIN into the banking sector, with the goal of enhancing financial inclusion, improving Know Your Customer (KYC) compliance, and streamlining customer onboarding.

Despite the nascent state of the national ID system, mobile money services have played a pivotal role in bridging identity and financial gaps. Platforms such as EVC Plus, operated by Hormuud Telecom, are widely used, with over 70% of Somalia’s population relying on them for everyday transactions. These services often operate independently of formal ID systems, relying instead on mobile phone numbers and community-based verification methods, thus providing an alternative pathway for FDPs and others who may lack official documentation.

Somaliland:

In Somaliland, a domestic identity documentation system is well established, though not internationally recognized. Locally issued identity cards are generally accepted by financial institutions, telecommunications companies, and other private sector actors within Somaliland’s jurisdiction. These IDs enable access to a broad range of services and are an important tool for facilitating local economic participation, including for refugee-returnees and displaced populations who have integrated into the community.

Mobile money platforms such as ZAAD, offered by Telesom, are deeply embedded in Somaliland’s financial landscape. These services support digital payments, remittances, and business transactions, often requiring only minimal documentation or informal verification. As a result, mobile money continues to serve as an inclusive financial instrument, especially for those who may face barriers accessing conventional banking services.