Somalia

Somalia is located in the horn of Africa with boundaries to Ethiopia, Djibouti and Kenya. Somalias death full functional g everywherenment collapsed in 1991. Since thence Somalia has been ruled by transitional governments backed by the United Nations and international unions and today the Somali federal official government. Somaliland north part of the Somalia decl ard itself as discover sovereignty in 1992, although there is no do important still recognized its sovereignty, as well, Puntland the north eastern regions of Somalia, constituted the semi- autonomous administration c aloneed Puntland state of Somalia in 1998. later the collapse of central government of Somalia, pecuniary institutions destroyed, the central marge of Somalia was malfunctioning with no enough license to manage the pecuniary brass of the unsophisticated. The countrys change focussing brass became night mire, with no central foc intake for the specie receipts of the country.The inflation rea ched at its aggrandisement with 30,000 so.sh exchanged to 1$ in 2008 and the management of silver to occupancyes and day to day proceeding set closely besides risky and costly.Somaliland launched bracing currency notes named Somaliland shillings in October 1994 to proclamation fiscal disturbances from the rest of Somalia.In 2010 expeditious capital reposition has emerged in the horn of Africa country, Somalia the telecommunicationmunications companies operated in Somalia driveed the rambling bills transfer servicing, Golis Telecom Company, hormuud telecom and telesom keep go with covering the three z matchlesss in Somalia namely Somaliland, puntland and conspiracywest central somalia. golis telecom covered ener overhearic gold transfer dos named SAHAL SERVICE in Puntland state, telesom caller covered Somaliland and called it ZAAD SERVICE and hormuud telecom covered south central Somalia named its overhaul as EVC PLUS.The emergency of liquid slanging in So malia started a new era in the field of bank system in Somalia.This new system has solved a cumulation of pecuniary constrains face up the personal credit line and commerce in Somalia and started ameliorate proceeding and cash security in the country.Sahal operate which is the unstable property transfer poke outed by golis telecommunication confederacy has been launched in 2009 in all over puntland. This includes the major cities in puntland such as bosaso, garowe and galkacyo.The operate which is owned and offered by golis Telecommunication Company, the abundantst telecom connection in the region, with more than 15000 active subscribers (2015) has been easily pass judgment by the corporation which highly suffered the malfunction of monetary system in the country.Sahal operate in puntland offer the community to the conjoining feature formMoney transfer. restless paymentMobile banking and proceedssMobile airtimeMobile remissionMoney transfer proceedsSahal atte nd to offered guests to transfer coin from one to an otherwise, they bay window transfer from small shargon of add up ranging from 0.1$ to unlimited us dollars. Golis Company super tingled this benefit initially to small amount of which is as followsGolis later decided to keep all the operates free of charge. This wait on flora as follows the customer needs to stupefy his cash amount to his mobile phone by visiting golis sales center. later the customer can ravish the cash back to other customers with sahal redevelopment where ever he is in Somalia.This ser ungodliness has largely been social occasiond by cablees and individuals for the transitions mingled with the cities and regions and has been widely accepted by the community since it is cheaper than the convention remittances giveing in the region such as dahalshiil, amal or iftin.This is the graphical representation of how sahal help whole flora learn 11 abut of notes transer serve well Figure 12 outg rowth of notes transfer service Mobile payment (paybills) This is another service offered by the golis telecom companys SAHAL SERVICE. Mobile payment is too called merchandiser depend and is intended to replace cash transactions between businesses and plenty. Golis customer has to get merchandiser number from golis sales offices and it is used for that business entirely, it cannot be used personal.You can get merchant number only if you arouse a overtakening business with a name and location. After you get merchant number, the customer go away do payment through and through this merchant number. The merchant number does not charge the customers as well as the possessors, it is free of charge. The merchant number is bounded by cities and regions and cannot cross across different cities.If you wish to send currency from one city to another for purchases, merchant number leave not religious service you and depart not work for that purpose instead you energize to use s ahal silver transfer service. Merchant number offered by golis telecom has helped businesses to run their business with or without cash transactions. It change magnitude the security of their transactions by belongings transactions with their merchant numbers history.The merchant person allow go to golis offices to get the transactions he do this year or this month or entirely a specific customer. This has increase the reliability and authority of the merchants and they are heavily relied on this service. This service has changed the kinetics of the business transactions in puntland and it fills the gap of securing business transactions and payments in which otherwise the government should impart to deal with.On the other side, there is a widespread believe that sahal service dominated the cash transactions in the country and if this service goes as it is now for many years there is a possibility that it forget degrade the cash system of the country hence it should be reg ulated and concretely managed by the concerned government agencies.Use of Paybills service from golis telecom is shown graphically belowFigure 13 sour of playacting mobile payment Mobile banking systemSahal service has an additional service called kaaftoon, this service connects your salute bank depict into your mobile with the help of sahal service.The customer who needs to use this service should first need sahal service enabled in his mobile phone, then your salute bank account can be adapt to your sahal service simply by asking salaam bank offices to do so. After it is being opened, you entrust be able to cling and retrieve you cash to your bank account. Similarly, you can send and retrieve money from the other salaam bank account anywhere in the country.Kaaftoon services become the biggest nightmare for other competitor banks.It helped salaam bank which is co-owned by golis telecom to enter trade tremendously and get a huge grocery store share with the minimum amou nt of time. The community highly welcomed This service as it is a new service enabled with the latest engineering science and upstage the constraint of lining up the bank offices to deposit or pick out cash your account.The kaaftoon service works as follows the customer should deposit cash money to his sahal service by visiting golis sales offices and depositing money to them then they will credit your sahal service account as per the requirement.Then inside your phone you can deposit the amount infallible to your salaam bank account and send money to other salaam bank accounts if required. Similarly you can disembowel money deposited in your salaam account into your sahal service and use it. You really dont require visiting salaam bank office or ATM machine to withdraw cash.The amount of money to withdraw or deposit using kaaftoon service is as follows you can withdraw or deposit minimum of 10$, it will not accept below 10$. only when you can withdraw and deposit as such(preno minal) as you need. This hallows the customers a huge flexibility of managing their transactions and business into their premises. Figure 14 process of performing mobile payment through sahalMobile airtime Mobile airtime is likewise another feature which allows customers to get golis airtime from their sahal service, this service defy customers the ability to get airtime to their mobile phones by using their sahal service, similarly they are allowed to give airtime to their friends and any golis subscriber. forwards sahal service come into existence, scratch cards, golis centers and agents used to give customers the airtime they need. Small amount of service fee are charged to the customers by the agents. But when sahal service begins to work all airtime work has shifted to the sahal service. Still there are agents of airtime which help customers those do not have registered sahal service to get their required airtime but they use their agency within sahal service.Al though this shift of airtime service paradigm lost jobs and services but the subscribers get the flexibility to manage their airtime. Figure 15 process of performing mobile airtime through sahal serviceMobile remittance (taaj service)The mobile remittance service or taaj service has been include sahal service package in the year 2013. Taaj is a subsidiary company of a child companies named HTG (hormuud, telesom and golis) and formarly cognise as BARAKAAT REDSEA COMPANY. The company have been subsidized jibe to the locations and clan boundaries in Somalia.This gave birth to meeting of sister companies of HTG group. Taaj remittance belongs to HTG and it is supported by all the mobile banking systems of these companies viz SAHAL, ZAAD and EVCPLUS services.Taaj Remittance Company has been chisel ind in the Somali trade in the year 2012, and has gained a large market share immediately, compelling the competitor companies with large market share to enter into the telecommunications company.The gaint Somali remittance companies, dahalshiil group and amal bank twain entered the telecom company by forming SOMTEL and AMTEL companies respectively.The main aim of creating SOMTEL and AMTEL by dahabshiil and amal companies is the risk they faced from such technology as taaj company with the help of mobile banking systems such sahal service.Somtel has been largely launched Somalia at large and has come with their mobile banking system named E-DAHAB.AMTEL Company has been launched in the year 2017 and it is still in its initial start up phases.Since the collapse of Somali government in 1991, Somali community has largely become immigrant in almost all over the world. Somali communities in different parts of the world use to send money in their families back home. The banking system of the country collapsed and the transfer of money from afield to the country become difficult and that time Somali remittance companies has emerged and take their role in transferring money between com munities abroad and Somalis in Somalia.Coming back to sahal service package, taaj service is one of the services supported by sahal service, it supports both local and international money transfer and it works as follows The person should deposit the amount of money to send into his sahal service. By using his sahal service, person should follow procedure accordingly and provide all the required information as seen graphically belowFigure 16 process of performing mobile remittance through sahal service Figure 17 process of performing mobile remittance through sahal serviceChallenges confronted sahal service in puntlandIntroducing sahal service into the market met challenges which include technology related issues, reliability and money exchange business.We will address these three challenges below and how sahal service survived from these cardinal challenges.Deficiency of sahal service technologyThe customer got caught by wish of knowledge from this new technology in which they o lfactory sensation a huge risk of their money. They didnt have antecedent knowledge of such technology nor it is something they use to see. This makes the service rigid and decreases its reliability and flexibility.Golis telecom company which is the owner of sahal service started the service as follows the company run the service only to its employees initially, to check whether the service runs as planned and rectify errors if any. This initially run of the service lasts for three months in which they send employee salaries, bonuses etc to this service, then the company opened the service to its customers by deputeting a lot of efforts to encourage customers the reliability, confidentiality and security of the service.They put a huge amount of marketing money to introduce and convince the customers to the new service. Golis telecom established a huge lcd tvs to many of its centers explaining how to use the service from technology point of view. Similarly they put publicizing age ncies such as TVs, radios and newspapers explaining the same. This helped customers to understand the service and use it. Leter, sahal service customers started to increase each month.Reliability of the serviceInutility, customers got suspicious about the reliability of the service, they didnt convince to put their money in mobile phone and let it go. They believed the possibility that the company may collapse, or they slander their money. Similarly since there is no strong monetary system in the country they feel keeping their money with them is best policy. Golis telecom survived this problem as follows first of all the service was not only run in golis telecom or in puntland but all across Somalia.ZAAD and EVC PLUS have been introduced in hargaisa and Mogadishu respectively. The introduction of the similar service across the country convinced the customers that the service has its demands now and may be it is the time to keep your money in mobile phones. The other asset which h elped the company to convince the customers is the customer loyalty to the company.The company has make a clean image from fraud and fiscal mismanagement during its existence and the customers feel it that way and it increased its reliability. Similarly golis telecom run a lot of sales offices to handle sahal service customer pity and customer issues in which it poured a huge money to immediately retrieve customer money in cash in case needed. This step greatly influenced the mindset of the customers and increased their confidentiality since their money is available 24/7 in cash or in the mobile phone.Money exchange businessesMerchants from money exchanges business who do currency exchange from dollars to Somali shillings and vice versa saw sahal service as their biggest threat. These groups of business people immediately felt that if this service runs successfully all those exchange businesses will not live peacefully side by side instead sahal service is the end money exchange bu siness.This is true in a way that no one will need to go exchange business to do exchanges from dollar to Somali shillings and vice versa since sahal service will do this and many more services. These group have tried to ruin the service and publicly inform the community by spreading negative propaganda about the service and mostly aligning the service with financial fraud.Golis telecom company stuck to its plan of fighting and win over the community the services offered by sahal service and its benefits.Their main defence strategy was security and convinced the community golis is the right place to secure their money instead of holding and incurring security costs similarly since there is no fully working financial banks both public and private there was a huge need of financial services which is give way than the current unstructured financial systems and services. This is the place where sahal service got the attention of community as whole.