MICROCAPITAL BRIEF: Dahabshiil to Launch “E-Dahab” Mobile Money Service in Somaliland

Dahabshiil, an international money transfer business founded in Somaliland that has operations or agents in 150 countries, reportedly has announced that it is introducing a mobile money platform in Somaliland called E-Dahab [1][2]. The service will compete with Zaad, a mobile money service offered in the region since 2009 by Telesom, a mobile service provider headquartered in Somaliland’s capital, Hargeisa. Approximately 10 percent of the 3.8 million people in Somaliland subscribe to Zaad [1].

E-Dahab will permit customers to upload funds to their mobile devices and use the credit to pay for purchases and send money to individuals in other countries [3]. Dahabshiil, which purchased a majority stake in the Somaliland-based internet and telecoms operator Somtel in 2008, employs 5,000 people and has offices in London, Hargeisa, Mogadishu and Dubai [2].

As part of plans to expand Zaad internationally, Telesom has signed deals with money transfer companies WorldRemit, which is based in the UK, and Tawakal, which is based in the United Arab Emirates. Telesom was founded in 2001 and offers mobile, internet and landline services. Neither financial information nor customer figures are available for Dahabshiil or Zaad.

By Benjamin Krupp, Research Associate

About Telesom

Telesom was established as a mobile service provider in Somaliland in 2001. The objective of the company is to interconnect the major cities and towns of Somaliland with its services. Telesom’s mobile money platform Zaad serves approximately 380,000 people in the country. The financial information for the company is not available.

Sources and Additional Resources

[1] The Guardian: Somaliland Has Embraced Mobile Money – But At What Price?

[2] Dahabshiil: Dahabshiil Story

[3] Somtel: Somtel Share Your World

[4] Somaliland Press, June 22, 2012: Dahabshiil: Move Aside Somali Network Operators, There’s a New Sheriff in Town

MicroCapital, May 27, 2014: WorldRemit to Allow Payouts to MTN’s MobileMoney E-wallets in Uganda

MicroCapital, August 20, 2013: eServGlobal, Zain Group Bring Collaborative Mobile Money Service to Africa and the Middle East

MicroCapital, August 6, 2013: WorldRemit Launches Direct Worldwide Money Transfer Service through Telesom’s Zaad Service

MicroCapital Universe Profile: Telesom

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