Mobile Money Ecosystem in Somalia

Mobile Money and Affectedness by Drought

The Somali population remains vulnerable to climatic shocks. More than half or 56% of Somalis were affected by the 2015-2018 drought. Among economic zones, Puntland has the highest proportion of affected people – 68%, followed by South Central – 56%.

The drought took a major toll on nomads and rural residents, with 92% and 73% being affected respectively.

At the household level, some of the major reported effects were on assets, income and water and food purchases.

Drought-affected households adopted a mix of strategies to cope with the effects of the drought, with the strategies varying greatly across population groups.

Borrowing was the most common coping strategy and was particularly prevalent among IDPs and nomads. Migration was also a common strategy, being particularly prevalent among rural residents. Relying on savings was also common for about a third of drought-affected people, but it was mostly used in urban areas.

Personal networks and relationships remain important to receive support during a crisis. Many Somalis rely on family, friends and clan networks to receive financial support.

Share of drought affected households
Items impacted by drought
Coping mechanisms