2021 in Review: Keeping Somalia Connected
Ahmed Yusuf, CEO of Hormuud Telecom
2021 has been a hard year for many, but we are proud that we were able to connect Somalis to one another throughout one of the most challenging of years. Stepping up to face the pandemic and ongoing humanitarian challenges has not deviated our drive towards creating a robust and resilient telecommunication and digital banking system across Somalia that Somalis can have confidence in.
In February, the Central Bank of Somalia awarded Hormuud Telecom the country’s first mobile money licence, further formalising the country’s digital payments system. The lisencing also further integrated Somalia with the global financial system.
In July, we announced our ambitions, in line with the Government of Somalia, to bring 4G broadband speed to every Somali citizen over the next two years. Increasing access to highspeed internet is critical to ensuring Somalia achieves its goal of becoming a cashless economy, and enabling those most hardest-to-reach to access the benefit of connectivity.
Under Somalia’s National ICT Policy, the government has pledged to reach total 4G coverage by 2024–2025. Demand is already growing. The average Hormuud data user consumes 5GB of data monthly — up from a national average of around 1–2GB a year ago. Mobile money is driving a large share of the demand as social distancing to curb the pandemic has also brought more citizens online.
Covid hit Somalia early this year with a vengeance. One of the most telling signs was the challenge of sourcing oxygen in country, which was putting undue stress of Somalia’s fragile public health infrastructure.
Hormuud Salaam Foundation, the philanthropic arm of Hormuud Telecom and Salaam Somali Bank, respond to need. We built, and rebuilt after an explosion, Banadir Hospital’s coronavirus wing, and outfitted it with Somalia’s first public oxygen plant. Whilst awaiting the plant’s delayed arrival, we sourced oxygen from domestic manufacturers and regional neighbors. In the next two years we plan to secure four more plants, assuring Somalia has a self-sufficient supply of oxygen as we continue to battle new variants and fortify our public health infrastructure.
We also utilised Hormuud Telecom’s assets and skilled workforce to facilitate our relief efforts. We set up a Covid call centre, instituted information ringtones, offered free internet for students, and provided direct economic relief. We’re proud of our capability to spring into action when humanitarian disaster strikes, a strength that comes from our local knowledge and dedication to the advancement of Somalia.
The Hormuud Telecom Scholarship was awarded to the third cohort of students this August. Beginning in 2019, the fund supports 30 full scholarships to the top choice Somali university the student gets into each year. The students have just finished their first semester of classes and we are proud to support them and of their commitment to their studies.
Hormuud wrapped up the year sponsoring the Mogadishu Tech Summit on Investing in Local Resilience and Innovation for Inclusive Growth. The summit is the most comprehensive convention of major stakeholders in Somalia’s tech sector, from entrepreneurs and investors to policy makers and multi-national corporations. This year, the event focused on Better Heath, Access to Education and Resourceful Somalia, and Salaam Somali Bank made a $4 US million pledge to support Somali entrepreneurs between 2022 and 2024 to ‘kick-start’ Somalia’s post-pandemic economic growth.
Next year marks Hormuud Telecom’s 20th year as Somalia’s largest telecommunications provider; we are proud to play a leading role in bringing Somalis together. From humble beginnings, we will in the next few years be able to offer every Somali citizen high-speed broadband, ahead of most developed nations. There are many exciting developments ahead that we are excited to share with you soon. We could not have come this far without the support our partners, and our valued customers and shareholders.
Have a great New Year.
