MyBank Somalia is launching a service allowing women to use their verified gold jewellery as collateral for financing.
In a region where women do not often have formal access to financing but hold substantial amounts of gold, this initiative aims to bridge a financing gap, allowing women to utilise their physical gold without having to sell it.
MyBank estimates that there are one million Somali women collectively holding around 20 tonnes of gold valued at US$3 billion ($4.18 billion). Gold is traditionally accumulated through marriage gifts or purchased as a store of wealth.
MyBank has confirmed it will finance the full market value of verified 21–24-karat pieces, allowing women to borrow money for up to four years at a 10% interest rate and receive their jewellery back after a full repayment.
The World Bank has noted that key barriers for women to access credit remain in Somalia, including limited property ownership and requirements for male guarantors.
By unlocking the latent value of women’s gold holdings, MyBank’s initiative not only expands access to credit but also challenges entrenched barriers in Somalia’s financial system. If successful, it could set a precedent for how informal assets are mobilised to drive inclusion, resilience, and economic empowerment across fragile markets.
Write to Amy Rotman at Mining.com.au
Main image: Unsplash
