Somalia ranks 1st in using mobile phones to pay bills

[Titanium]

But ranks 4th lowest in mobile penetration rate

Although Somalia has the fourth lowest mobile penetration rate in the world, it ranks 1st and 3rd globally in the percentage of adults using mobile phones to pay bills and send/receive money, respectively. This somewhat contradictory outcome is mainly driven by Somalia’s largest telecom company: Hormuud Telecom Somalia Inc. or HORTEL. In an effort to respond to the plummeting security and economic conditions in Somalia, HORTEL launched ZAAD mobile banking services through which individuals could transfer money to other subscribers, facilitating shopping and paying for utility and telephone bills without carrying cash. This has proved to be an attractive option for Somalis who have been facing worsening security conditions over the past decade.

Furthermore, ZAAD has made it possible for hundreds of thousands of Somalis to receive remittances from their family and friends abroad, therefore saving lives in this conflict-torn country. With more than $1 billion USD in value per year (more than 70 percent of Somali GDP), remittances have been the backbone of the war-torn economy. Without ZAAD mobile phone payment service, the effect of these remittances would be minimal. ZAAD has made it possible for remittances to be transferred across the country with a push of a button and with no risk for the sender or receiver, making it possible for thousands of people across Somalia to gain access to basic food items and healthcare.

Full Report: http://blogs.worldbank.org/allaboutfina ... TWBN_D_EXT