Always Moving Always Sharing Somaliland

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THE INTRODUCTION OF THE DIGITAL SHILLING Based on media announcements and operator interviews, both Telesom and Somtel plan to introduce Somaliland Shillings in order to curb the country’s present hyperflation and satisfy a growing consumer demand. Supporting dual currency is easy for consumers to understand, and on Zaad will be supported by a separate prefix (and corresponding account) for Somaliland Shillings vs USD. The decision for a dual wallet was made in order to avoid the need for Telesom or Zaad to act as an exchange. Pay using USD *88X*412345*10*1234# (CALL) Pay using Somaliland Shilling *22X*412345*10*1234# (CALL) B&MG - SOMALILAND MOBILE MONEY STUDIO D RADIODURANS MAY 2015 66
SHILLING REMITTANCE TO CURB INFLATION Addressing the problem of Somaliland’s hyperinflation requires a look at the source: the massive influx of dollars to the market through remittances and international trade. Contrary to the positive value associated with an influx of foreign currency in a traditional setting, the dual-currency nature of the nation encourages a dual-currency population: Those who have dollars use mostly dollars, those who have shillings use mostly shillings. Therefore traditional economic theories do not apply. The introduction of the Shilling mobile wallet might be the first step of a broader and continuous transition towards the Shilling economy. After meeting with Abdirahman Shire, Zaad’s services manager of Telesom, a clearer picture of Zaad’s future potential emerged. Their plans to increase Zaad’s compatibility with other international remittance institutions, thanks to their current API development, reveals a strategy aimed at establishing Zaad as an online payment interface, in a similar way to the popular Paypal. Today, World Remit 1 for example, is already allowing remittances from GBP to Zaad in USD. This was mentioned as quite convenient by participants, as it does not require any cash-out and cash-in (versus, for example, Dahabshiil). “Inflation is not caused by this [Zaad]… Inflation is caused by the money flow of a foreign currency into the market. And the Central Bank should have control of the money flow.” — Abdiwahab Maax Maxamed, Telesom, involved in the launch of Zaad 2 Following the introduction of SLSH wallet, if Zaad’s remittance interoperability also supports local currency, we believe it may curb the negative influence of USD flowing into Somaliland and the chronic inflation associated with this influx. [1] WorldRemit, Send money online to Somaliland https://www.worldremit.com/en/Somaliland [2]Roads and Kingdoms, Mobile money in a dusty land, Mark Hay 2013 roadsandkingdoms.com/2013/mobile-money-in-a-dusty-land/ B&MG - SOMALILAND MOBILE MONEY STUDIO D RADIODURANS MAY 2015 67
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Always Moving, Always Sharing Mobi
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Executive Summary A lack of interna
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SUGGESTED READING These three artic
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SOMALILAND FINANCIAL TERMS GLOSSARY
Page 9 and 10:
An Experiment in Democracy In Somal
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TRADE FLOWS YEMEN, KSA CHINA / UAE
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SOMALILAND POWER STRUCTURE: TRIBAL
Page 15 and 16: STRONG COMMERCIAL FORCES Telesom do
Page 17 and 18: TWO DOMINANT PLAYERS, AND THE REST
Page 19 and 20: As a comparison… Somaliland Myanm
Page 21 and 22: IN SUMMARY: Somaliland provides a u
Page 23 and 24: FOR CONTEXT: A TYPICAL “WESTERN
Page 25 and 26: FRICTIONLESS FINANCIAL INTERDEPENDE
Page 27 and 28: The widespread use of khat can crea
Page 29 and 30: MARRIAGE - EXAMPLE OF MONEY FLOWS 1
Page 31 and 32: IN SUMMARY: Circumstance, tradition
Page 33 and 34: DUAL-CURRENCY COMPLEXITY The Somali
Page 35 and 36: EVERYDAY PRICES As an example Aroun
Page 37 and 38: SAVINGS MECHANISMS Depending on inc
Page 39 and 40: “I have a secret SIM my kids don
Page 41 and 42: WHO MAKES THE MONEY MOVE Livestock,
Page 43 and 44: ZAAD USE ACROSS VENDORS Due to the
Page 45 and 46: REPORTED VS. ACTUAL TRANSACTIONS Be
Page 47 and 48: ZAAD AND THE RURAL POPULATION Zaad
Page 49 and 50: TRANSACTIONS & CUSTOMERS OF A SMALL
Page 51 and 52: IN SUMMARY: Blurred lines between c
Page 53 and 54: HOW TO SEND MONEY There are two way
Page 55 and 56: HOW TO SEND MONEY II The recently-i
Page 57 and 58: THE LENGTH OF TRANSACTION In a high
Page 59 and 60: “Without Zaad, our lives would go
Page 61 and 62: NUMBERS & LIMITED LITERACY Literacy
Page 63 and 64: CASE STUDY: SCHOOL TEACHER Jamal, 2
Page 65: 5 What’s Missing, & What’s to C
Page 70 and 71: TOWARDS FINANCIAL INCLUSION By supp
Page 72 and 73: RECOGNITION, INFRASTRUCTURE & ECONO
Page 74 and 75: ZAAD, REDUCING BARRIERS TO FINANCIA
Page 76 and 77: 6 Methodology & Approach B&MG - SOM
Page 78: PARTICIPANTS \ We conducted: • 35
Page 81 and 82: F-SCALE RATING Studio D assigns a F
Page 83 and 84: About Studio D Studio D Radiodurans
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Always Moving Always Sharing Somaliland

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