1. Diaspora Investment in Agriculture
IFAD Annual Meeting
Abdirashid Duale
Dahabshiil Group Chief Executive Officer
17 November 2011

2. Dahabshiil
 Dahabshiil has grown into a major global business.
 Global presence in 150 countries.
 International remittances - person to person,
business to business and international payments for
UN agencies and NGOs
 Foreign exchange services in all major currencies
 Comprehensive AML and compliance programme

3. The role of remittances
 US$1.6 billion is remitted to Somalia annually (UN estimate)
 Transfer money for a wide range of purposes
 Daily subsistence from the diaspora
 Development and humanitarian organizations
 Investment in commercial projects from the diaspora
 Facilitate domestic and international trade
 Lifeline to remote rural areas, contributing to poverty reduction
 Do sophisticated remittance systems provide a raison d'être for
the diaspora and help preserve it as well as sustain Somalia?

4. Remittances go to...
 Town dwellers
 Rural communities
 Farm workers
 Herders
 The very poor
 Educators
 Hospitals
 NGOs and charities
 Small businesses
 Every type of Somali...!

5. Innovation at Dahabshiil
 Continuous improvement of access and services for customers
 New products & services e.g. mobile payments, banking,
ATMs, micro-finance, commercial payments, and more
 Use of on-line systems for fast and efficient money transfers:
 Instant global payment service
 Free text messaging to customers
 Web-based transaction tracking facility
 Dahabcard – the online loyalty card
 E-Banking and card-based transfers, Debit card ‘E-Cash’.

6. Future Opportunities
 Advancement in telecommunication is the future!
 Increased mobile phone and internet usage in Somali region
 Mobile banking: customers can transfer and save money using
their mobile phones
 Potential in other areas like using mobile phones to promote
primary health care
 Contribute to economic development; Telecom helps maintain
informal healthy economy in Somali region after unrest
 Lots of opportunity for Dahabshiil...!

7. Beyond Financial Services
 We are a migrant-run business
 Understand migrants’ needs
 We improve links between migrants here with Africa
 Prompted migrants to launch own businesses and secure their
position overseas
 Take best solutions from here back home
 We unify disparate groups
 People from different clans now have business relationship
through us – employees from all clans
 Builds trust; reduces hostilities
 Private sector organisations like Dahabshiil can:
 Support new and existing businesses, support agriculture,
reduce famine

8. Partnership with
Dahabshiil...??
 Technologies that could help the farmers/ livestock
traders
 Training in farming and livestock
 Dairy products – milk, cheese, ghee, etc.
 Banana, watermelon and mango
 Aloe - this plant could be exported for use in beauty and
health products in the USA and Europe
 Frankincense
 Alternative energy
 Setting the international standard for exports etc.

10. What we need to change!
The British prime minister, David Cameron, said this week that
Somalia is a failed state that directly threatens Britain's interests,
while Somalis themselves suffer famine and poverty, exacerbated
by violence. He said there must be an international effort to stand
up to Somali pirates, support countries in the region, and address
the causes of conflict and instability in Somalia.
The development of agriculture, industry and other economic
activity in the region, funded in part by the Somali diaspora, with
Dahabshiil’s help, will surely advance the international community’s
interests as well as those of Somalia – and help put Mr Cameron’s
mind at rest!!