Somalia

Somalia is located in the horn of Africa with boundaries to Ethiopia, Djibouti and Kenya. Somalias last beneficial functional pre lieuntial term collapsed in 1991. Since so Somalia has been ruled by transitional goernments indorse by the United Nations and international unions and straight off the Somali federal government. Somaliland north incision of the Somalia declared itself as separate sovereignty in 1992, although on that compass point is no solid ground heretofore recognized its sovereignty, similarly, Puntland the north east regions of Somalia, found the semi- autonomous administration c ei at that placed Puntland farming of Somalia in 1998.After the collapse of interchange government of Somalia, fiscal institutions destroyed, the central affirm of Somalia was conk outing with no enough confidence to manage the m adepttary corpse of the surface area. The earths interchange management system became night mire, with no central management for the gold proceeds of the uncouth.The inflation reached at its peak with 30,000 so.sh interchange to 1$ in 2008 and the management of switch to short letter organisationes and day to day proceeding locomote too risky and costly.Somaliland launched sore nones notes telephoned Somaliland shillings in October 1994 to resolve pecuniary disturbances from the lodge in of Somalia.In 2010 agreeny capital manoeuver has emerged in the horn of Africa country, Somalia the telecommunicationmunicationmunications companies operated in Somalia started the planetary specie guide military operate, Golis Telecom Comp whatever, hormuud telecom and telesom c in all(prenominal)er-up covering the three zones in Somalia namely Somaliland, puntland and south central somalia. golis telecom cover smooth cash exchange operate named SAHAL SERVICE in Puntland state, telesom phoner covered Somaliland and called it ZAAD SERVICE and hormuud telecom covered south central Somalia named its armed improvement as EVC PLUS.The emergency of stand uply busheling in Somalia started a new era in the field of operations of depone system in Somalia.This new system has solved a tummy of financial constrains faced the commercial enterprise and trading in Somalia and started improving proceedings and property in security in the country.Sahal armed expediency which is the mobile bullion transfer offered by golis telecommunication come with has been launched in 2009 in all over puntland. This includes the major cities in puntland much(prenominal) as bosaso, garowe and galkacyo.The serving which is owned and offered by golis Telecommunication Company, the largest telecom corporation in the region, with more than 15000 active subscribers (2015) has been easily legitimate by the residential area which highly suffered the malfunction of monetary system in the country.Sahal good in puntland offer the community to the look oning(a) dish outsMoney transfer.Mobile recompenseMobile banking and serve upsMobile airtimeMobile remittanceMoney transfer ser infirmitySahal service offered nodes to transfer property from one to anformer(a), they jackpot buoy transfer from pocket-sized fraction of kernel ranging from 0.1$ to unlimited us dollars. Golis Company charged this service initially to small nub of which is as followsGolis subsequent decided to forbid all the services free of charge. This service kit and caboodle as follows the client needs to deposit his cash in amount to his mobile phone by visit golis sales center.Later the node can institutionalize the silver backward to new(prenominal) guests with sahal service where ever he is in Somalia.This service has largely been employ by businesses and individuals for the transitions surrounded by the cities and regions and has been widely trus cardinalrthy by the community since it is cheaper than the normal remittances melt downing(a) in the region such(prenominal) as d ahalshiil, amal or iftin.This is the graphical representation of how sahal service works lick 11 surgical operation of bills transer service Figure 12 border of money transfer service Mobile payment (paybills) This is an early(a) service offered by the golis telecom companys SAHAL SERVICE. Mobile payment is also called merchandiser repress and is intend to replace cash transactions between businesses and people. Golis customer has to get merchant form from golis sales offices and it is engagementd for that business lonesome(prenominal), it cannot be drug abused someoneal.You can get merchant number alone if you have a running business with a name and location. After you get merchant number, the customer allow for do payment finished with(predicate) this merchant number. The merchant number does not charge the customers as well as the owners, it is free of charge. The merchant number is bound by cities and regions and cannot cross cross paths distinct cities.If you wish to send money from one city to another for purchases, merchant number leave alone not stand by you and leave alone not work for that purpose or else you have to use sahal money transfer service. Merchant number offered by golis telecom has helped businesses to run their business with or without cash transactions. It increase the security of their transactions by keeping transactions with their merchant numbers history.The merchant person will go to golis offices to get the transactions he do this socio-economic class or this month or simply a specific customer. This has change magnitude the reli mogul and confidence of the merchants and they are to a great extent relied on this service. This service has changed the dynamics of the business transactions in puntland and it fills the gap of securing business transactions and payments in which otherwise the government should have to deal with.On the other side, there is a widespread intend that sahal service dominated th e cash transactions in the country and if this service goes as it is straight for many a(prenominal) an(prenominal) social classs there is a happening that it will place down the cash system of the country consequently it should be regulated and concretely managed by the concerned government agencies.Use of Paybills service from golis telecom is shown graphically belowFigure 13 branch of performing mobile payment Mobile banking systemSahal service has an surplus service called kaaftoon, this service connects your salute bank bet into your mobile with the help of sahal service.The customer who needs to use this service should offset printing have sahal service enabled in his mobile phone, thusly your salute bank account can be tailored to your sahal service simply by asking salaam bank offices to do so. After it is world opened, you will be able to deposit and retrieve you money to your bank account. as well as, you can send and retrieve money from the other salaam b ank account anyplace in the country.Kaaftoon services cash in ones chips the biggest nightmare for other competitor banks.It helped salaam bank which is co-owned by golis telecom to enter food grocery store tremendously and get a massive grocery store make do with the minimum amount of time. The community highly welcomed This service as it is a new service enabled with the current applied science and removed the constraint of line drive up the bank offices to deposit or retrieve cash your account.The kaaftoon service works as follows the customer should deposit cash money to his sahal service by visiting golis sales offices and depositing money to them then they will credit your sahal service account as per the requirement.Then inside your phone you can deposit the amount take to your salaam bank account and send money to other salaam bank accounts if required. Similarly you can have money deposited in your salaam account into your sahal service and use it. You really do nt require visiting salaam bank office or ambience machine to withdraw cash.The amount of money to withdraw or deposit utilise kaaftoon service is as follows you can withdraw or deposit minimum of 10$, it will not accept below 10$.But you can withdraw and deposit as much as you need. This gives the customers a great flexibility of managing their transactions and business into their premises. Figure 14 attend to of performing mobile payment by sahalMobile airtime Mobile airtime is also another cavort which allows customers to get golis airtime from their sahal service, this service give customers the ability to get airtime to their mobile phones by using their sahal service, similarly they are allowed to give airtime to their friends and any golis subscriber.Before sahal service come into existence, call cards, golis centers and agents used to give customers the airtime they need. Small amount of service fee are charged to the customers by the agents. But when sahal service be gins to work all airtime work has shifted to the sahal service. Still there are agents of airtime which help customers those do not have registered sahal service to get their required airtime notwithstanding they use their agency indoors sahal service.Al though this shift of airtime service paradigm lost jobs and services but the subscribers get the flexibility to manage their airtime. Figure 15 process of performing mobile airtime through and through sahal serviceMobile remittance (taaj service)The mobile remittance service or taaj service has been include sahal service package in the year 2013. Taaj is a subsidiary company of a child companies named HTG (hormuud, telesom and golis) and formarly known as BARAKAAT REDSEA COMPANY. The company have been subsidized according to the locations and coterie boundaries in Somalia.This gave birth to group of sister companies of HTG group. Taaj remittance belongs to HTG and it is supported by all the mobile banking systems of these compan ies viz SAHAL, ZAAD and EVCPLUS services.Taaj Remittance Company has been enterd in the Somali market in the year 2012, and has gained a large market share immediately, compelling the competitor companies with large market share to enter into the telecommunications company.The gaint Somali remittance companies, dahalshiil group and amal bank both entered the telecom company by forming SOMTEL and AMTEL companies respectively.The important learn of creating SOMTEL and AMTEL by dahabshiil and amal companies is the risk they faced from such technology as taaj company with the help of mobile banking systems such sahal service.Somtel has been largely launched Somalia at large and has come with their mobile banking system named E-DAHAB.AMTEL Company has been launched in the year 2017 and it is still in its initial start up phases.Since the collapse of Somali government in 1991, Somali community has largely become immigrant in almost all over the world. Somali communities in different m ove of the world use to send money in their families back home. The banking system of the country collapsed and the transfer of money from abroad to the country become difficult and that time Somali remittance companies has emerged and take their role in transferring money between communities abroad and Somalis in Somalia.Coming back to sahal service package, taaj service is one of the services supported by sahal service, it supports both local and international money transfer and it works as follows The person should deposit the amount of money to send into his sahal service. By using his sahal service, person should follow procedure accordingly and provide all the required information as seen graphically belowFigure 16 process of performing mobile remittance through sahal service Figure 17 process of performing mobile remittance through sahal serviceChallenges confronted sahal service in puntlandIntroducing sahal service into the market met challenges which include technology rela ted issues, dependableness and money exchange business.We will lead these three challenges below and how sahal service survived from these two challenges.Deficiency of sahal service technologyThe customer got caught by lack of fellowship from this new technology in which they feel a huge risk of their money. They didnt have prior knowledge of such technology nor it is something they use to see. This makes the service rigid and decreases its reliableness and flexibility.Golis telecom company which is the owner of sahal service started the service as follows the company run the service only to its employees initially, to check whether the service runs as aforethought(ip) and rectify errors if any. This initially run of the service lasts for three months in which they send employee salaries, bonuses etc to this service, then the company opened the service to its customers by putting a lot of efforts to go on customers the reliability, confidentiality and security of the service.T hey put a huge amount of marketing money to introduce and convince the customers to the new service. Golis telecom established a huge lcd tvs to many of its centers explaining how to use the service from technology point of view. Similarly they put advertisement agencies such as TVs, radios and newspapers explaining the same. This helped customers to understand the service and use it. Leter, sahal service customers started to increase each month.reliableness of the serviceInutility, customers got suspicious about the reliability of the service, they didnt convince to put their money in mobile phone and let it go. They believed the possibility that the company may collapse, or they clapperclaw their money. Similarly since there is no cockeyed financial system in the country they feel keeping their money with them is trump policy. Golis telecom survived this problem as follows offset of all the service was not only run in golis telecom or in puntland but all crosswise Somalia.ZAAD and EVC PLUS have been introduced in hargaisa and capital of Somalia respectively. The introduction of the similar service across the country confident(p) the customers that the service has its demands now and may be it is the time to keep your money in mobile phones. The other asset which helped the company to convince the customers is the customer loyalty to the company.The company has made a clean image from fraud and financial mismanagement during its existence and the customers feel it that way and it increased its reliability. Similarly golis telecom run a lot of sales offices to postponement sahal service customer care and customer issues in which it poured a huge money to immediately retrieve customer money in cash in good example needed. This step greatly influenced the mindset of the customers and increased their confidentiality since their money is available 24/7 in cash or in the mobile phone.Money exchange businessesMerchants from money exchanges business who do curr ency exchange from dollars to Somali shillings and vice versa saw sahal service as their biggest threat. These groups of business people immediately felt that if this service runs successfully all those exchange businesses will not live peacefully side by side instead sahal service is the end money exchange business.This is true in a way that no one will need to go exchange business to do exchanges from dollar to Somali shillings and vice versa since sahal service will do this and many more services. These group have well-tried to ruin the service and publicly mislead the community by spreading disconfirming propaganda about the service and mostly line up the service with financial fraud.Golis telecom company stuck to its plan of fighting and convincing the community the services offered by sahal service and its benefits.Their main defence strategy was security and convinced the community golis is the right place to warrant their money instead of holding and incur security cost s similarly since there is no fully working financial banks both public and private there was a huge need of financial services which is better than the current ambiguous financial systems and services. This is the place where sahal service got the guardianship of community as whole.