Somalia: on the road to becoming a regional powerhouse

By Ahmed Mohamed Yusuf, CEO of Hormuud Telecom

Somalia has embarked on an exciting new era, reflective of the great efforts made to move away from its troubled past. For example, while Somalis previously faced a widely inaccessible decentralized banking system, our innovative culture of entrepreneurship led to the introduction of mobile money.

Since the introduction of mobile money, Somalia is on track to becoming one of the world’s first cashless societies forming a digital revolution. Somalia’s application to join the East African Community (EAC) marks a significant milestone in the country’s progress as a valuable contributor to the East African region.

Somalia boasts a wealth of resources, it possesses the longest coastline in Africa which is well suited for coastal trade and a booming fishing market. The coastline also provides substantial entry points for subsea ocular cables to park, positioning Somalia to become the leading telecoms partner in the region.

Somalia is also brimming with young talent. The country’s growing economy is attributable to its entrepreneurs who have spurred digital innovation and economic activity. Somalia’s economy is made up of a quilt of small and micro-sized businesses, as entrepreneurial activity makes up 76% of employment in Somalia. Our strong entrepreneurial culture, combined with our large young population, means there’s lots of qualified talent to go around and collaborate regionally.

The uptake of mobile money across Somalia over the last ten years has propelled our entrepreneurs into the digital space. Somalia has a thriving online sector, and it is something that many are looking to grow beyond our borders. Joining the EAC would provide ample opportunity to develop this sector by improving and facilitating trade in the region.

Somalia’s entry into the EAC could also aid the region in taking steps toward digitalising the economy. According to the World Bank (2021), 95% of trade in the Horn of Africa is made up of informal trade. This being said, mobile money could serve as a tool to formalise informal trade giving more people access to formal credit and promoting financial inclusion throughout the region.

Somalia has come a long way since the civil war and has heralded financial opportunity amid difficult circumstances. We have the resources, tools and talent to be useful players and trading partners in the East African Community. As a proud member of the East African community, we look forward to closer collaboration with our neighbours.