What hawala do you use? **important survey**

[IPushFatKids]

Hey friends,

I'd appreciate if you guys could comment on what Hawala do you use to send money back home (not just Somalia, but where-ever in east africa they may be).

Do you guys think there is a big difference in service between hawalas?

Have you ever sent/requested money to be sent via mobile money? example ZAAD account.

** you don't have to answer ALL of these, but if you can all three it would be apprecaited **

thank you

 

[Shushue]

Dahabshiil will open an app soon and i think it would dominate the market soon.

 

[MARAQ DIGAAG]

World Remit

 

[Shushue]

World Remit

To Somaliland? Whats the fee?

 

[Kaleel]

There's a big difference between those who provide mobile transfers and those who do not. Mobile transfer is near instant whereas a person who is receiving money to pick up can be inconvenienced by travelling.

I use Taaj to send.

 

[IPushFatKids]

thanks for the response Kaleel.

The "mobile money" aspect is a little more complicated than people think. I'm not implying you don't know this but here are some caveats about starting a "mobile money app".

1. No one/company can legally create money, only the central bank can do that.

2. Most companies behind these apps have to have real money backed up by the amount in their system. In the case of mpesa, safaricom is obligated to keep money in various banks. Otherwise you can easily imagine a scenerio where they just create fake money and pose a huge risk to the economy.

3. To get people to actually use the "mobile money app", people have to be confident that they are actually liquid...i,e can be converted to hard currency very conveniently and other people/businiesses accept them. Network effect his make or break for mobile money.

I'm interested in how this space develops in the future in Somalia. Do you know if the different operators have interpretability? i.e transfer Zaad money to Taaj?? i know in kenya they introduced a law to make the networks work together creating a single "mobile money mesh", which is excellent.

honestly, i have a bit of concern about the mobile money operators in Somalia. there is no one to regulate them or verify they are able to honour the hard currency money that's supposed to be in the network/or haven't inflated it.

 

[La Xawla]

@IPushFatKids Do you work for a Xawaalad?

 

[Kaleel]

thanks for the response Kaleel.

The "mobile money" aspect is a little more complicated than people think. I'm not implying you don't know this but here are some caveats about starting a "mobile money app".

1. No one/company can legally create money, only the central bank can do that.

2. Most companies behind these apps have to have real money backed up by the amount in their system. In the case of mpesa, safaricom is obligated to keep money in various banks. Otherwise you can easily imagine a scenerio where they just create fake money and pose a huge risk to the economy.

3. To get people to actually use the "mobile money app", people have to be confident that they are actually liquid...i,e can be converted to hard currency very conveniently and other people/businiesses accept them. Network effect his make or break for mobile money.

I'm interested in how this space develops in the future in Somalia. Do you know if the different operators have interpretability? i.e transfer Zaad money to Taaj?? i know in kenya they introduced a law to make the networks work together creating a single "mobile money mesh", which is excellent.

honestly, i have a bit of concern about the mobile money operators in Somalia. there is no one to regulate them or verify they are able to honour the hard currency money that's supposed to be in the network/or haven't inflated it.

I don't think you can send directly from Zaad to Taaj but you can do it through an agent. Agents usually handle multiple providers EVC/Taaj in Konfuur, Sahal in Bari and Zaad in Waqooyi, each is controlled by a telecommunications company. So you have to regulate the tele market first but they are resisting any regulation as far as I know.
I'm not personally concerned about them if they are providing a service the government can't, they have made Somalia a cashless society so they are ahead in something.

 

[SirLancelLord]

World Remit is the most convenient, and it's rate is cheaper than Dahabshiil charges £3.99 per $100. So you pay £82 to send at a rate of 1 - 1.27