How Hormuud Telcom has formed lifestyles in Somalia in the middle of the COVID-19 pandemic

How Hormuud Telcom has shaped life in Somalia in the midst of the COVID-19 pandemic

MOGADISHU, Somalia – Probably the most reliable and efficient telecommunications company in the Federal Republic of Somalia, Hormuud Telecom, a leading privately owned telecommunications company based in Mogadishu, has played a critical role throughout the COVID-19 pandemic, which continues to wreak havoc across the globe.

With almost a dilapidated health care system, Somalia has relied heavily on success, especially from the West and internal donors, who are credited with helping to equip various facilities in the country, thus saving thousands of people from death.

So far, the disease has spread to every corner of Somalia, but the Northeastern State, North Western of Somaliaand Banadir regions are the most affected. Over 180 people have succumbed to the disease due to over 6,000 infections, though experts claim the country’s testing capacity is limited.

But throughout the journey and as part of her company’s social responsibility [CSR], Hormuud Telcom has played an integral role in helping the government tackle the pandemic. Recently, the company donated $ 50,000 to the Gedo region to help curb the famine crisis, which has been triggered in part by the pandemic.

To facilitate online engagement through Zoom and other platforms, Hormuud has subsidized bundles, enabling users to interact without restrictions. This has tremendously helped students and officers working for various organizations to get involved without necessarily having physical meetings.

Hormuud Telecom was established on April 2, 2002 in Mogadishu, Somalia. The company started modestly with 250 shareholders, ten customer service centers and a few thousand customers. At that time, the company only offered voice and SMS services.

In February, the Minister of Health awarded Dr. Fawziya Abikar the company for what she called “important roles you play in calming the public”. The company is credited for donating oxygen tanks and even equipping COVID-19 isolation centers in the country.

Although it is part of the CSR, Abukar said: “The government does not take this for granted. Your support is important, we want you to continue working with us to fight this pandemic”.

Somalia is one of the cashless economies and that is why the company has chosen to provide a mobile money transfer platform, EVC Plus, as a free service. According to transactions totaling approx. $ 2.7 billion a month, according to the World Bank, Hormuud noted: “We have grown mobile consumption at a rate of 73% among Somalis over the age of 16”.

Recently, the government awarded the company the first accreditation of mobile money by Centralbanks in Somalia. This represents over two decades of innovation, growth and development and a major milestone in the formalization of Somalia’s regulatory infrastructure.

Somalia previously received large quantities of imported dry food from humanitarian agencies and the United Nations [UN]. It was very difficult to transport the food aid to those who needed it most. Safety concerns lasted in rural areas, which meant that further investment was needed to safely transport the goods to those who needed them most.

But with mobile money, humanitarian organizations can directly provide financial assistance to those in need. Help distributed via mobile money not only physically protects recipients but also enables them through freedom of choice. This is a far more effective form of humanitarian aid that enables individuals to best serve their own needs rather than just receiving food, the company notes.

A report published in the Johannes Quarter Journal of Economics by Johannes Haushofer and Jeremy Shapiro showed that “unconditional cash transfers have a significant impact on the recipients’ financial performance and psychological well-being”. Hormuud’s mobile money platform has been crucial in delivering these results.

A spokesman for the agency said recently, “thanks to our Somali telecommunications partners, we have been able to expand our humanitarian capabilities in the country significantly. We are now able to reach even the most vulnerable and remote regions. ”

In addition, cash subsidies contribute to the Somali economy and have a trickle-down effect. In the past, aid organizations imported food from other countries, and today the cash from abroad goes from a Somali pocket – or mobile phone – to the direct market that supports small businesses and communities.

Most organizations operating in Somalia are able to transfer cash to their clients and workers with minimal interaction as a way to quell the COVID-19 pandemic in the country. The company remains the largest telecommunications network in the country, only competed by those from neighboring countries.

AXADLETM

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