The spread of mobile phones, banks that are too small and unstable circumstances make it a "cash unnecessary society"

ByUditha wickramanayaka

"Countries where it is difficult to get the most visa in the world"Somalia is a country that was recommended to hire a guard along with the acquisition of a visa when staying due to civil war or terrorism. In Somalia, where the conflict has been settled for many years and the economy has collapsed, cash and credit cards are not required to purchase everything, and mobile payment using mobile phones now seems to be penetrating instead.

More phones, few banks and years of instability are transforming Somalia to a cashless society - Quartz

Telecommunications company based in Mogadishu, the capital city of Somalia's largest cityHormuud TelecomWas established in 2002, when the riot is relatively well matched, brought mobile banking to the countries of East Africa. Currently Hormuud Telecom is one of the largest companies offering mobile banking services, mobile banking itself is also expanding. Subscribers who were only 22% three years ago now exceed 51% and according to 2014 data, 40% of adults living in Somalia possess mobile banking accounts.

Ahmed Farah Hassan, who works as an NGO driver working in cooperation with UNICEF in cooperation with UNICEF, after refueling at the gas station, clicks on the screen of the mobile phone several times, "There is no need to have money Where mobile purchase can be used wherever you buy things or receive services, "he says.

As a result of the civil war and terrorism, Somalia, which was called "Sub-Saharan sick man", has been regaining stability in recent years. Stores are lined up in the town, residents buy sweet tea at the open cafe, with groceries at the super market, fruits and shoes at the stalls, but both are settled on the mobile phone. Also, mobile banking is used for payment of water supply and electricity, and it corresponds to automatic withdrawal monthly.

Muslim terrorist groupsAl ShababIn 2010, forbidding the use of mobile banking in the occupied territory because money settled by mobile banking could flow to the Somali Interim Federal Government, while Hormuud Telecom abolished the old mechanism In 2011, we began offering a type of electronic money called EVC Plus, which is free and easy to use, as a new service.

In Kenya, a telecommunications company called Safaricom announced a remittance service called M - PESA in 2007 and has acquired millions of users, but EVC Plus refers to the mechanism of M - PESA, It is operated by partnering with Vodafone communication company. The difference between EVC Plus and M-PESA is that M-PESA is exchanged in local currency, whereas EVC Plus uses US dollars.


Ahmed Mohamed Yusuf, Representative Director of Hormuud Telecom said, "There are remittances of 1.6 billion dollars (about 180 billion yen) annually from Somali foreigners abroad in Somalia, which is helping the service to grow" I will. Given that Somalia's GDP in 2014 is $ 5.7 billion (about 640 billion yen), it is clear how much influence the amount of about 180 billion yen has.

Retail BankingIn the situation that Al Shabab attacks sporadically, people think "it is dangerous to carry cash", and the existence of mobile banking becomes what is indispensable for Somalia reconstruction That's why.

However, Al Shabab is intimidating companies that support technology in 2014, and there is no concern, but now that mobile banking is indispensable to Somalia, fraudsters and It is certain that it is essential for Somalia reconstruction that business can be done without worrying that combatants are deprived of money.

ByAlbany Associates

in Note, Posted by darkhorse_log