Diaspora Investment in Agriculture IFAD Annual Meeting Abdirashid Duale Dahabshiil Group Chief Executive Officer 17 November 2011
Dahabshiil Dahabshiil has grown into a major global business. Global presence in 150 countries. International remittances - person to person, business to business and international payments for UN agencies and NGOs Foreign exchange services in all major currencies Comprehensive AML and compliance programme
The role of remittances US$1.6 billion is remitted to Somalia annually (UN estimate) Transfer money for a wide range of purposes Daily subsistence from the diaspora Development and humanitarian organizations Investment in commercial projects from the diaspora Facilitate domestic and international trade Lifeline to remote rural areas, contributing to poverty reduction Do sophisticated remittance systems provide a raison dêtre for the diaspora and help preserve it as well as sustain Somalia?
Remittances go to... Town dwellers Rural communities Farm workers Herders The very poor Educators Hospitals NGOs and charities Small businesses Every type of Somali...!
Innovation at Dahabshiil Continuous improvement of access and services for customers New products & services e.g. mobile payments, banking, ATMs, micro-finance, commercial payments, and more Use of on-line systems for fast and efficient money transfers: Instant global payment service Free text messaging to customers Web-based transaction tracking facility Dahabcard – the online loyalty card E-Banking and card-based transfers, Debit card ‘E-Cash’.
Future Opportunities Advancement in telecommunication is the future! Increased mobile phone and internet usage in Somali region Mobile banking: customers can transfer and save money using their mobile phones Potential in other areas like using mobile phones to promote primary health care Contribute to economic development; Telecom helps maintain informal healthy economy in Somali region after unrest Lots of opportunity for Dahabshiil...!
Beyond Financial Services We are a migrant-run business Understand migrants’ needs We improve links between migrants here with Africa Prompted migrants to launch own businesses and secure their position overseas Take best solutions from here back home We unify disparate groups People from different clans now have business relationship through us – employees from all clans Builds trust; reduces hostilities Private sector organisations like Dahabshiil can: Support new and existing businesses, support agriculture, reduce famine
Partnership with Dahabshiil...?? Technologies that could help the farmers/ livestock traders Training in farming and livestock Dairy products – milk, cheese, ghee, etc. Banana, watermelon and mango Aloe - this plant could be exported for use in beauty and health products in the USA and Europe Frankincense Alternative energy Setting the international standard for exports etc.
What we need to change! The British prime minister, David Cameron, said this week thatSomalia is a failed state that directly threatens Britains interests,while Somalis themselves suffer famine and poverty, exacerbatedby violence. He said there must be an international effort to standup to Somali pirates, support countries in the region, and address the causes of conflict and instability in Somalia. The development of agriculture, industry and other economic activity in the region, funded in part by the Somali diaspora, withDahabshiil’s help, will surely advance the international community’s interests as well as those of Somalia – and help put Mr Cameron’s mind at rest!!