Always Moving Always Sharing Somaliland

Executive Summary
A lack of international investment has enabled Somaliland
to nurture, from the ground up, a locally unique and
broadly successful mobile-money ecosystem.
1. Widespread adoption of Zaad for specific transactions—
mostly those costing between US$2-100 (and occasionally for
larger purchases). The ability to keep cash in Zaad is a critical
feature akin to savings, however a nascent mistrust of the
system as a whole prevents individuals from maintaining a
significant (we estimate over US$200) balance.
2. Literacy is not currently a barrier to use because semi-literate
individuals can rote learn numerical commands to send
money. Individuals that are semi-literate are also able to rely
on proximate others (family, a neighbouring vendor, etc) to
assist them with completion of transactions when necessary.
3. There are currently two mobile money platforms, with Zaad
continuing to dominate the market over e-Dahab. Although
e-Dahab entered the market only recently and is still growing
slowly, it has shown the potential to develop into a more
comprehensive banking ecosystem and extend the value
proposition of mobile money as the market grows. For now,
the universal acceptance of Zaad will continue to drive mobile
money use.
4. The relative accuracy and speed of a transaction on Zaad using
the new short code, described later in this report, is
impressive. Built-in feedback and tracking mechanisms make
the SMS interface simple to use, and allow easy tracking of
spending and purchases.
5. While mobile money services are broadening the reach of
rudimentary financial services, they currently stop short of
directly addressing traditional recipients of financial
inclusion. Barriers to direct use by this demographic include
cellular coverage, cost of phone ownership and use, and until
just recently, Zaad’s exclusivity as a platform for USD (rather
than the local Somaliland Shilling (SLSH).
6. Nevertheless, there is strong evidence of social impact,
through secondary actors such as extended family and peers.
It is common to find family members and friends acting as
cash-in/ cash-out agents, having memorised the Zaad number
most convenient for their use.
B&MG - SOMALILAND MOBILE MONEY STUDIO D RADIODURANS
MAY 2015 3