Somali Hawala

[AbdiWahab252]

Doing some informal market research and wanted to ask you a few questions:

1. Besides Dhiigshiil, what are the other most popular ones that have a big footprint in all the Somali inhabited regions ?

2. How much effort is required in operating one ? It doesn't seem like it requires much: 1 honest clerk, a computer, a huge safe.

3. How are the margins on the transfer fees split between the agent who collects the cash to wire and the company ? What if someone receives money, do you get a cut ?

4. Legal implications - Any good resources on how to avoid being visited by the Alphabet Boyz ?


Thanks

[AbdiWahab252]

Anyone ?

[qoraxeey]

Qaran Express

[Paddington Bear]

Qaran Express,Amana Online,Amal Express,One that starts with K,Al Mustaqabal and half a dozen others that I don't remember.

You know, for an old man, my memory is not really that bad. I recall Executive talking about the balance sheets of Dahabshiil and how he thinks they don't make much money. I think he's your man.

[AbdiWahab252]

Okay, thanks Qoraxeey.

Pbear,

My initial perceptions is that it is a low maintenance business like a Laundrymat.

[djibsomali]

I tell you what the margins are:

you have 1 agent in europe/usa (independent)
and 1 agent in somalia/africa (independent as well)
and the hawala.

When you send money the commission is 4%

they divide as follow:
50% of the commision for the hawala

the 50% to share between the two agents (therefore 25% each).

the hawala serve as a means of guarantor and money vehicule between the two agents

[AbdiWahab252]

DjibSomali,

Thanks bro, sounds very lucrative.

[SultanOrder]

kaax, western union, towfiq

[Navy9]

Few years ago, the UNDP-Somalia was interested in making some centralized system for the Somali money transfer companies, I am not sure if that project saw the light.

[Amethyst]

Al Amal Ekisbarees!

Navy: I'm pretty sure that would create a monopoly then, put the entire business's future in the hands of a few folks. Imagine financial downfall effecting all the companies at once. I'm all for the Private sector ala' non-Gov controlled stuff. Xawilaads have come a long way on their own.

[AbdiWahab252]

Navy9,

Thanks for the tidbit, but how have OFAC regs changed the hawala game ? Nowdays, there is a lot of scrutiny over hawalas.

Amtheyst,

Amal Express... never used them before. As for the free market, I am all for it but there are times when regulation is required especially after dubious investment frauds that have hit the community.

[Executive]

Abdiwahab

Salaam, I have done some extensive research on Hawalads as I was interested in setting up a remittance service. This is now something I wont peruse.

I recommend you read this report, its very informative and would answer some of your questions http://mirror.undp.org/somalia/Remittan ... hawala.pdf

[AbdiWahab252]

Executive,

Salam abowe. Thanks for the link. Can you tell me why you don't want to do it ?

[Navy9]

Nice link Executive.

Abdi,
Read that article, looks interesting. Dr Abdisalam Omar is a fellow DCian, I wonder if he is here

[guhad122]

AW,
If you want to start Hawala business, talk to the Kaah owners...The only problem is that they are Reer Cabdille and no Makaahiils are allowed in the vicinity....
If the guy opens up little to ouside Reer Cabdille, I think Kaah has a better chance of becoming the biggest Hawala...
Think about it;
He has strong clan connections in:
Somalia; mainly Jubooyinka and Muqdisho, Bakool, Gedo and so forth
Ethiopia; Ogadenia
Kenya; NFD

That is a huge market.....