Somalia Remittance Payments Flashcards
Where is Somalia
On the eastern coast of Africa
What is the Somali economy heavily reliant on
Remittance payments from core regions such as the US or UK. It makes up 50% of Somalia’s GNI and 80% of investments.
What percentage of families rely on remittance payments
40% rely on remittance payments for basic needs
How much was the estimated annual total of remittance payments
$1.3 billion. More than all foreign aid and investments in Somalia combined
What happened in 2012
concerns that some money was going to the terrorist group Al-Shabaab led to many US and UK banks and money transfer agencies stopping payments to Somalia
What other reasons were there for stopping payments
It has an informal economy with little government regulation because of a past of civil war and military coups. There is also a lack of laws against money laundering
For how long did Somalia not have a government
15 years between the fall of Siad Barre’s government in 1991 and the establishment of the Transitional National Government in 2006
What happened by 2015
All American, English and Australian banks had stopped any payments going to Somalia meaning Somalians could not send money back to their families.
What do thousands of children use remittance payments for
School fees
