CEO of Dahabshiil gives keynote speech on global money transfer at
the University of Oxford
July 1st, 2011
Abdirashid Duale, CEO of Dahabshiil, one of Africa’s largest money
transfer companies, gave the key note address at a conference
hosted by Oxford University from 29-30 June. The two day event, the
first of its kind to focus on important issues facing the Somali
diaspora community, explored in particul ar how developments in
media and communications shape the way the diaspora engages with and
influ ences the population at home politically, economically and
culturally. Other speakers at the event incl uded academics from
both within and outside Oxford University, along with journalists
from the BBC, Al Jazeera, VOA and other media institutions including
several prominent Somali outlets.
Dahabshiil has a 40-year history of serving communities around the
world. Its current core business is in the transfer of remittances
to East Africa, a vital flow of income to many in the region. Its
expandi ng network of agent and payout locations stretches to some
of area’s most remote locations, extendi ng an essential lifeline to
the inhabitants and helping to sustain isolated local economies.
In his keynote address, Mr Duale discussed the rapidly developing
regional telecoms industry, and in particular how Dahabshiil’s money
transfer operations are becoming increasingly interlinked with the
company’s growing involvement in the latest wireless technology,
working closely with strategic partn ers. He went on to discuss
Dahabshiil’s recent acquisition of a majority stake in SomTel, a
fast-growi ng leading Somali telecoms and mobile internet firm
with expertise in advanced wireless technology and high speed
broadband. The Somali region’s telecoms industry, as Mr Duale
explained, is one of the most competitive in the world, having
undergone rapid expansion since the early 1990s. He remembers a time
when there were no private telecoms companies in Somalia, just a
state-owned network. Back then, high frequency radio was still the
preferred method of communication – cheap, simple, and mobile. In
some of the more remote regions, Dahabshiil even used HF radio for
its operations; as he put it, ‘HF was, for us, the mobile of the
time’. There are currently up to thirty private telecoms companies
providing voice and data services across the Somali-speaking
regions. Demand is strong and price increases are limited by stiff
competition. Consumers also stand to benefit from the
fast-approaching interconnection of telecoms operators, as well as
the imminent installation of a fibre-optic marine cable that will
enable high speed internet.
Telecoms services are becoming ever more widely available and the
costs of international calls are am ong the lowest in the world. Mr
Duale believes that with such affordable mobile networks in place
and a growing number of companies – including SomTel – offering the
latest GMS technology, the infrastr ucture is in place for a rapid
expansion of Dahabshiil’s mobile banking and ‘eCash’ debit card
services across the region and beyond. The benefits of such a
development in the money transfer industry will be far-reaching. The
efficiency of these new services is something with which
Dahabshiil’s customers are already familiar; remittance transfers in
and out of Africa take minutes to clear regardless of wher e in the
world money is sent or received. Customers have access to a
web-based transaction tracking facility, and an SMS notification is
sent to the recipient as soon as the funds are available.
Closing his speech, Mr Duale returned to the issue of migrant
communities. “Dahabshiil”, he said, “is a migrant-run business that
understands the needs of diaspora communities, and helps to
strengthen their links wherever they are in the world.”
In an interview for the Financial Times published last month, Mr
Duale spoke about the importance of that understanding to the
success of his business: “Without knowing your people as your
customers and your staff, and them trusting you, you cannot be in
business. I knew Somalis, I knew how to serve them, so it was not
some sophisticated customer I had to find,” he said.
The UN estimates total annual remittance flows into Africa to be
around $22 billion, having risen from $9 billion in 1990. Remittance
flows within the continent, particularly to rural areas, have also
increased as a result of rising mobility. Many East African
countries rely on remittances to sustain economic development, and
the integration of mobile telecoms with money transfer services will
eliminate many of the regional challenges currently faced by the
latter and greatly improve access to finance in some of Africa’s
poorest communities.
Source:Africa Business
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