Somalis changed the face of money transfers worldwide

[greznigrezni]

Somalis changed the face of money transfers worldwide​

Somalia’s money transfer market is one of the most developed in the world, characterized by a large diaspora sending billions of dollars home in remittances each year and a local population that prefers mobile money to cash.

Latest data from the World Bank in 2017 suggests that 73% of the population above the age of 16 use mobile money services—making Somalia one of the most dynamic markets in Africa and worldwide.

Despite only being introduced 10 years ago, over two thirds of all payments in Somalia now rely on mobile money platforms.


Although Hormuud, Somalia’s leading mobile money provider, only received GSMA Mobile Money Certification in March, a global standard of telecoms excellence, the country has changed the face of money transfers worldwide for decades.

The major factors behind the country’s innovation in money transfers are a tough operating environment, a weak banking system, lack of policy implementation, and deep distrust of government and the local currency.

Somalis changed the face of money transfers worldwide

With Hormuud, Somalia's leading mobile money provider, having recently received GSMA Mobile Money Certification, recently, this article explores how Somalia has changed the face of money transfers worldwide.

qz.com

 

[KaiMarvin]

Somalis changed the face of money transfers worldwide​

View attachment 219557

Somalia’s money transfer market is one of the most developed in the world, characterized by a large diaspora sending billions of dollars home in remittances each year and a local population that prefers mobile money to cash.

Latest data from the World Bank in 2017 suggests that 73% of the population above the age of 16 use mobile money services—making Somalia one of the most dynamic markets in Africa and worldwide.

Despite only being introduced 10 years ago, over two thirds of all payments in Somalia now rely on mobile money platforms.


Although Hormuud, Somalia’s leading mobile money provider, only received GSMA Mobile Money Certification in March, a global standard of telecoms excellence, the country has changed the face of money transfers worldwide for decades.

The major factors behind the country’s innovation in money transfers are a tough operating environment, a weak banking system, lack of policy implementation, and deep distrust of government and the local currency.

The zaad service is clutchhh. Ppl were looking at my ignorant ass like Neanderthal whenever I

used cash. Never did I think a fob will tell me to '' keep up w times". Humbling experience ngl

 

[Maan]

As soon as somalia gets internationally recognised bank xawalads will go bust

 

[Basra]

Still without a proper govt, everything is useless. In Mogadishu people transact in dollars. That is insane.

 

[Dooyo]

Today, I discovered that I could directly send money to my family's Zaad accounts using World Remit. Freaking awesome and saves me loads of time. Why are Somalis so innovated in business but so lacking in other sectors?

 

[bidenkulaha]

Still without a proper govt, everything is useless. In Mogadishu people transact in dollars. That is insane.

Especially when remittances fall due to second generation Somalis never sending money home.

I like my people but I don’t have know the same family members my parents have been billing for the past decades.

I recommend us to become an American colony so the Somali central bank has access to dollars

 

[Basra]

Especially when remittances fall due to second generation Somalis never sending money home.

I like my people but I don’t have know the same family members my parents have been billing for the past decades.

I recommend us to become an American colony so the Somali central bank has access to dollars

u raise a good point. Time is flying, generations who were loyal to their family and sending money are dying off, leaving millenials who are self centered and not community oriented. Woes to fobs, maasaakiins

 

[J-Rasta]

I have two younger cousins, their village isn't safe. Due to drought, the instability and US drones striking the areas. So they fled to teh capital.They go to school, so I support them, their parents aren't alive. I'm finding a way to get them to Kenya, when they're old enough they'll join me in South Africa. Until then, I send remittance, most importantly find them a safe passage to Kenya. When the times right they'll join me. I helped other relatives to get here. I'm not a stingy guy, that is what some would think of me ? Imagine the relatives back home. They are grown men relying on people to help them spend on qaad and unnecessary stuff. That is where I draw the line. Would I assist you if you asked me for weed money, the answer is obviously, a solid no. Qaad is destructive and counterproductive to a society, it destroys you and makes you dependant and unfortunately in Somalia a lot of young men are in this situation chewing qaad and ringing people left and right, I don't support that. As for older relatives and people losing their farms and livestocks I send them whenever I can.

In South Africa, there's this thing called Black Tax, where young people are forced to share half of their earnings with their parents, and there's nothing wrong with showing support to the people that bore you. But lending money to your relatives that is a no no. Look I don't have time to explain this topic on here, you could do your research, it's quite similar to family remittance.

 

[Maan]

I have two younger cousins, their village isn't safe. Due to drought, the instability and US drones striking the areas. So they fled to teh capital.They go to school, so I support them, their parents aren't alive. I'm finding a way to get them to Kenya, when they're old enough they'll join me in South Africa. Until then, I send remittance, most importantly find them a safe passage to Kenya. When the times right they'll join me. I helped other relatives to get here. I'm not a stingy guy, that is what some would think of me ? Imagine the relatives back home. They are grown men relying on people to help them spend on qaad and unnecessary stuff. That is where I draw the line. Would I assist you if you asked me for weed money, the answer is obviously, a solid no. Qaad is destructive and counterproductive to a society, it destroys you and makes you dependant and unfortunately in Somalia a lot of young men are in this situation chewing qaad and ringing people left and right, I don't support that. As for older relatives and people losing their farms and livestocks I send them whenever I can.

In South Africa, there's this thing called Black Tax, where young people are forced to share half of their earnings with their parents, and there's nothing wrong with showing support to the people that bore you. But lending money to your relatives that is a no no. Look I don't have time to explain this topic on here, you could do your research, it's quite similar to family remittance.

You're a good person mashallah. I used to send remittance and pay the university fees for a cousin of mine with the intention of marrying her someday. As soon as she got on the flight to Canada using my sisters passport that I travelled all the way to somalia to give her she blocked me everywhere. From that day one I decided not to send any money back home. Somalis are heartless and opportunists, as soon as they achieve their goals its f*ck off with you

 

[Pre-frhnn]

I have two younger cousins, their village isn't safe. Due to drought, the instability and US drones striking the areas. So they fled to teh capital.They go to school, so I support them, their parents aren't alive. I'm finding a way to get them to Kenya, when they're old enough they'll join me in South Africa. Until then, I send remittance, most importantly find them a safe passage to Kenya. When the times right they'll join me. I helped other relatives to get here. I'm not a stingy guy, that is what some would think of me ? Imagine the relatives back home. They are grown men relying on people to help them spend on qaad and unnecessary stuff. That is where I draw the line. Would I assist you if you asked me for weed money, the answer is obviously, a solid no. Qaad is destructive and counterproductive to a society, it destroys you and makes you dependant and unfortunately in Somalia a lot of young men are in this situation chewing qaad and ringing people left and right, I don't support that. As for older relatives and people losing their farms and livestocks I send them whenever I can.

In South Africa, there's this thing called Black Tax, where young people are forced to share half of their earnings with their parents, and there's nothing wrong with showing support to the people that bore you. But lending money to your relatives that is a no no. Look I don't have time to explain this topic on here, you could do your research, it's quite similar to family remittance.

About safe passages, does SA not have a sponsoring visa system where you can get in legally instead of going through borders illegally? I know it's fairly easy to get refugee status in SA, and to get your passports 10 years after if you do everything the government ask you to do. And about Kenya, Somali passports are easy to get and flights to Kenya are under 200$ each.

 

[Pre-frhnn]

I have two younger cousins, their village isn't safe. Due to drought, the instability and US drones striking the areas. So they fled to teh capital.They go to school, so I support them, their parents aren't alive. I'm finding a way to get them to Kenya, when they're old enough they'll join me in South Africa. Until then, I send remittance, most importantly find them a safe passage to Kenya. When the times right they'll join me. I helped other relatives to get here. I'm not a stingy guy, that is what some would think of me ? Imagine the relatives back home. They are grown men relying on people to help them spend on qaad and unnecessary stuff. That is where I draw the line. Would I assist you if you asked me for weed money, the answer is obviously, a solid no. Qaad is destructive and counterproductive to a society, it destroys you and makes you dependant and unfortunately in Somalia a lot of young men are in this situation chewing qaad and ringing people left and right, I don't support that. As for older relatives and people losing their farms and livestocks I send them whenever I can.

In South Africa, there's this thing called Black Tax, where young people are forced to share half of their earnings with their parents, and there's nothing wrong with showing support to the people that bore you. But lending money to your relatives that is a no no. Look I don't have time to explain this topic on here, you could do your research, it's quite similar to family remittance.

I've always wondered why Somalis play roulette with their lives. Pay is not that good if you work in shops like many do, but it's better than Somalia and more developed definitely. Wouldn't countries like Saudi have better opportunities?