Creating a more inclusive economy: the importance of improving digital financial literacy in Somalia

By Ahmed Yusef, CEO of Hormuud Telecom

While only 16% of the Somali population have bank accounts, over two thirds of all payments made in Somalia now rely on mobile money platforms. We are well on our way to becoming a cashless society.

However, a widespread lack of digital financial literacy amongst Somalia’s most vulnerable is leaving people excluded from economic life — which only further entrenches poverty in marginalised groups.

GMSA’s latest report revealed that a third of mobile money users in sub-Saharan Africa cannot use their accounts without the help from a family member or agent. The findings also showed that women were 5% more likely to require help than men.

Our mission at Hormuud Telecom has always been to connect all Somalis, no matter where they are. Accessing life-changing technology is futile unless people can use it with confidence. This is integral to financial and digital inclusion continuing to advance.

We are committed to working with our partners, the financial sector, and government organisations to increase digital financial literacy in Somalia and were proud to contribute to GSMA’s latest financial and digital literacy toolkit.

Not only were we able to share our experiences of the challenges of digital financial inclusion in Somalia and collaborate on potential solutions, but we were also able to learn from other stakeholders leading the charge on change.

It is important that we actively raise awareness around the challenges associated with digital financial services — such as the increased risk of fraud and theft — alongside the benefits.

A big step within this will be partnering with the GSMA to offer training programmes to our customer service agents, so that they can provide our mobile money users with clear guidance on how to use services safely and effectively.

We can collaborate with NGOs and educational institutions to spread helpful information on becoming financially digitally literate. And using social media, TV, and radio-based campaigns will also be key in reaching a broader Somali audience.

The benefits of everyone being able to use mobile money safely and effectively are endless. Beyond boosting the livelihoods of those living in rural communities, stabilising economic growth and stability, it will also increase female empowerment, and ensure that those with disabilities can access the economy in an equitable way.

I believe that Somalia’s development journey must be anchored in the fact that we are only as connected as the most vulnerable in society. It is vital to our mission that last-mile communities are empowered with the knowledge and skills they need to participate in the digital economy.