Somalia Flashcards
How much of remittances helps Somalia support economic development and livelihoods?
50% of GNI
80% of all investment in the country
What does GNI stand for?
Gross National Income
What does GNP stand for?
Gross National Product
Which terrorist group provoked concerns about money in 2012?
Al Shabaab
What was the result of the money concern regarding Al Shabaab?
Many US and UK banks and many money agencies withdrew their service
What are the concerns for the US and UK financial institutions based on conditions in Somalia?
- informal economy with little government regulation
- only had a government since 2012 - still very volatile country
- lack of anti-money laundering laws
- SARS for money transmitters (suspicious activity reports)
- remittances end up in the hands of Al Shabaab
Life after losing remittances
40% of Somali families rely on remittances from overseas for basic needs such as food and medicine
What was the last major UK bank to stop transferring remittances to Somalia?
Barclays in 2013
shut down 250 money transfer businesses
What is the estimated annual total of remittances?
$1.3 billion - more than all foreign aid investment in Somalia combined
What is Somalias population?
10 million
When did Somalias central government disappear?
early 1990s
How much money so Somalis send living in diaspora?
approx $1.4 billion
What % do remittances contribute to Somalias GDP?
23%
How many Somali Americans are there?
150,000
On average, how many $ pp do Somali-Americans send on average annually?
$3,800
