Abdinasir Ali Abdi1
*, Naima
Ibrahim Ahmed2
, Dahir
Abdi Ali3
, Ahmed Ismail
Mohamed4
, Yakub Burhan
Abdullahi2

ABSTRACT

Financial institutions have become increasingly influential in the economic development of Somalia and play a significant role in strengthening the employment sector, particularly in Mogadishu. This study aimed to investigate the role of financial institutions in employment generation and workforce development in Mogadishu, Somalia. The study adopted a descriptive research design, while a structured questionnaire was utilized to collect primary data from respondents associated with financial institutions. A sample size of 123 respondents was selected from the target population, including financial institution clients, staff members, and managers. The findings revealed that 46 respondents (37.4%) were financial institution clients, 37 respondents (30.1%) were financial institution staff, and 40 respondents (32.5%) were managers. These categories were selected to ensure the collection of reliable and relevant information from individuals directly connected to financial institutions. Data analysis was conducted using the Statistical Package for Social Sciences (SPSS) version 23. The study findings indicated that the majority of respondents agreed that financial institutions have a positive and significant contribution to employment creation, business growth, and economic empowerment in Mogadishu. The study concludes that financial institutions, including banks and microfinance organizations, play an essential role in enhancing employment opportunities and supporting economic stability within Somalia. Keywords: Financial institutions, banks, employment sector, microfinance performance, Mogadishu, Somalia.