Somalia: Al-Shabab Shuns Mobile Money Transfer

By Eric Sande

MOGADISHU---Somalia’s embattled government suffered yet another blow when the radical militia group Al--Shabaab eschewed the use of Mobile Money Transfer (MMT) services in Somalia Sunday. The message was communicated through their Political and Regional Office.

Alshabab claims the spread of this service disrupts the hawala system which people commonly use in their dealings. This service will gradually eliminate the hawala system in its entirety, making it easy to limit financial transfers to the MMT service alone.

A deadline of January 31, 2011,was issued to institutions that run those kind of services.

In their statement, Al shaabab said, "The use of the MMT service will be discontinued in all parts of Somalia -- and the companies that offer these services, specifically Hormuud, Telesom and Golis, must stop dealing with this service."

The MMT service entered Somalia under the trademark “Zaad/Sahal” on the basis of enabling the Muslim Somali people to transfer money through mobile phones for purchasing, payment of bills, purchase of call time, and other financial transactions in a fast, cheap and easy manner. This service was launched by three companies; Hormud in Mogadishu, Golis in Bossaaso, and Telesom in Hargeisa.

In a response through a statement, treasury minister Abdullahi Mohamed Ali said the extremists were up on an ill motive to sabotage innovation, entrepreneurship and economic development of the country.

Houmuud Telcom in southern and central Somalia, Golis in Puntland and Telsom in Somaliland were single out by the militia group and ordered to halt the use of MMT.