Mobile money platforms changing the financial sector in Somalia
The money transfer market in Somalia is one of the most advanced in the world, characterised by citizens both home and abroad transferring billions of dollars in remittances every year. The money transfer market has helped the local population to be able to send and receive money easily from their relatives outside the country and remote workers working for foreign companies to receive their salaries.
According to World Bank data released in 2017, it is estimated that 73% of the population above 16 years of age use mobile money services, making Somalia one of the most dynamic money markets in Africa and worldwide. The money transfer concept in Somalia was introduced into the country 10 years ago, and despite the short Introduction, over 63% of all payments in Somalia rely on mobile money payment platforms.
The financial service keeps developing in Somalia and has positively impacted the country’s economic sector in financial technology. Hormuud, Somalia’s leading mobile money provider, just obtained GSMA mobile money certification in March 2022 – this is a global standard of telecoms excellence and a big win for the country.
Adoption of Mobile Money Services in Somalia
According to developers, major factors which triggered the country’s intake in money transfers were due to poor operating environment, unreliable banking systems and a lack of policy implementation. These consistent deforms made financial transactions difficult in the country, as well as many other African countries.
Source: Africa Exponent