Mobile Money Ecosystem in Somalia

Mobile Money in Somalia

The ICT Sector Unit of the World Bank Group has been working with the Central Bank of Somalia (CBS), the Ministry of Posts, Telecommunications and Technology (MPTT) and the Ministry of Finance (MoF) of the Federal Government of Somalia (FGS) to provide a multi-phased programme of technical support for the ICT legal and regulatory framework and enabling environment.

Somalia boasts a developed ICT sector and telecommunication infrastructure, with five main Mobile Network Operators (MNOs) operating across the country. The increased availability and popularity of mobile phones in Somalia has led to the development of mobile money services. Given the depreciation of the local currency and relatively low penetration of banking services, people and firms in Somalia have been relying on mobile money services for daily money transfers.

Altai Consulting was selected by the World Bank to carry out the program’s research component and collect supply and demand side market data on the mobile money ecosystem in Somalia (First Wave of the research). Building on the First Wave of the research, Altai Consulting carried out a Thematic Extension research in 2018, which focused on mobile money access and usage during the 2015-2018 drought as an example of climatic shocks affecting Somalia (Second Wave of the research). The Second Wave put more emphasis on exploring mobile money usage by vulnerable groups, and also included nomads who had not been surveyed during the First Wave.