Friday September 14, 2018
Somalia outpaces most African countries in the market, despite its fragility and underdeveloped financial institutions.
NAIROBI, Kenya, Sept 14 – Approximately
155 million mobile money transactions worth US$2.7 billion are
conducted in Somalia every month, making it one of the most active
mobile money markets in the world.
According to a World Bank finding, mobile
money has superseded the use of cash in the country, with over 70
percent of adult Somalis using mobile money services regularly.
Somalia outpaces most African countries in the market, despite its fragility and underdeveloped financial institutions.
Lead ICT policy specialist at the World Bank
Tim Kelly says private sector actors have given Somalia a unique
opportunity to leapfrog towards widespread financial inclusion.
“World Bank will continue to support the
partnership between the Central Bank of Somalia, the National
Communications Authority and the key private sector actors as they
deliberate on an appropriate regulatory framework for the sector,” Kelly
said.
The country, however, lacks robust consumer protection and know-your-customer requirements.
The challenge for policymakers and
regulators is how to mitigate system vulnerabilities and avoid
macroeconomic effects in the event of service disruptions.
“Reducing costs and promoting
greater stability is a top priority for the overall development agenda
for the financial sector, ensuring that regulation does not stifle
innovation by leveling the playing field is a very close
second,” said Thilasoni Musuku, Senior Financial Sector Specialist at
the World Bank Finance, Competitiveness and Innovation Global Practice.