Every year, the Somali diaspora sends home approximately $1.3bn. Remittances account for 25–45 percent of Somalia’s economy and exceed the amount it receives in humanitarian aid, development aid, and foreign direct investment combined. As Somali money transfer operators lose their bank accounts, Somali families are losing their only formal or transparent channel through which to send money. Somalia needs long-term support to build sustainable financial institutions, and urgent help to maintain its current remittance flows.
This briefing reviews international efforts to facilitate remittances to Somalia and focuses on the US and the UK, where the threat to the Somali remittance system is most acute. It also looks at the uncertain future viability of the Somali remittance industry in Australia.
Adeso, Global Center on Cooperative Security and Oxfam’s recommendations have a worldwide application, including on the role of G20 countries in fulfilling their commitments to financial inclusion.
This report has been released by Oxfam, Adeso and Global Center on Cooperative Security