Comments on: The Somalia Remittance Paradox http://projectdiaspora.org/27 Mobilizing Africa's Diaspora Tue, 06 Jan 2009 04:47:47 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Wizzit: Getting Banking Right in South Africa | Project Diaspora http://projectdiaspora.org/27/comment-page-1#comment-462 Wizzit: Getting Banking Right in South Africa | Project Diaspora Mon, 17 Nov 2008 03:53:46 +0000 http://projectdiaspora.org/the-somalia-remittance-paradox.htm#comment-462 [...] of the biggest hurdles to development in Sub-Saharan Africa is lack of access to banking. We have lamented the degree to which this gaping hole stymies the Diaspora and their efforts to send money back [...] [...] of the biggest hurdles to development in Sub-Saharan Africa is lack of access to banking. We have lamented the degree to which this gaping hole stymies the Diaspora and their efforts to send money back [...]

]]> By: tracy1314 http://projectdiaspora.org/27/comment-page-1#comment-46 tracy1314 Fri, 08 Feb 2008 05:29:02 +0000 http://projectdiaspora.org/the-somalia-remittance-paradox.htm#comment-46 Abdurahman: The link the the local Somali remittance organization SOMTA.org supports your view that the remitters are still thriving. Costs associated with those organizations, however, are extremely high compared to the fees to send to other countries... especially when you compare too countries like the Philippines or Mexico. My point is more that the US and Britain contributed to further instability in Somalia by constricting the flow of money in Somalia without good evidence that is this was a necessary step. Additionally if international bankers and remitters could operate there without fear of serious financial losses (and a PR nightmare if they get shut down) More services could be offered to both the local Somali's and Somali's in the Diaspora... like mobile services, door-to-door delivery etc. These services are a part of the offerings the Mexicans, South Americans, Caribbean's, South and some East Asians are able to choose from. South Africa, Kenya, Nigera etc are all beginning to get these types of services as well... What is your take on the service offerings and costs that are associated with Remittances to Somalia? Abdurahman: The link the the local Somali remittance organization SOMTA.org supports your view that the remitters are still thriving. Costs associated with those organizations, however, are extremely high compared to the fees to send to other countries… especially when you compare too countries like the Philippines or Mexico. My point is more that the US and Britain contributed to further instability in Somalia by constricting the flow of money in Somalia without good evidence that is this was a necessary step. Additionally if international bankers and remitters could operate there without fear of serious financial losses (and a PR nightmare if they get shut down) More services could be offered to both the local Somali’s and Somali’s in the Diaspora… like mobile services, door-to-door delivery etc. These services are a part of the offerings the Mexicans, South Americans, Caribbean’s, South and some East Asians are able to choose from. South Africa, Kenya, Nigera etc are all beginning to get these types of services as well… What is your take on the service offerings and costs that are associated with Remittances to Somalia?

]]> By: The $20 Billion African Remittance Market | White African http://projectdiaspora.org/27/comment-page-1#comment-45 The $20 Billion African Remittance Market | White African Fri, 08 Feb 2008 04:55:28 +0000 http://projectdiaspora.org/the-somalia-remittance-paradox.htm#comment-45 [...] over at Project Diaspora has an interesting post about remittances to [...] [...] over at Project Diaspora has an interesting post about remittances to [...]

]]> By: Abdurahman http://projectdiaspora.org/27/comment-page-1#comment-39 Abdurahman Tue, 29 Jan 2008 09:22:38 +0000 http://projectdiaspora.org/the-somalia-remittance-paradox.htm#comment-39 It's great you tackled this subject, but I would say not to the depth it deserved. The Hawala - money transfer businesses - share profit with their representative, so if the charge was $5 for every $100 then the rep. gets $2.5. These representatives find their own ways to ensure that everything is running smoothly, so Reps in the West keep detailed records of their transactions and inform the authorities of any abnormalities (like large transfers), and they're audited. When Barakat was closed, my neighbor in Melbourne, who was their representative there, was able to recover the money he had in the bank because he kept records and was always audited. Though Barakat was the biggest there were others to take their place, many others. So the money transfer business is still booming. Final note. The Halawa business boomed before the civil war because the banking system, run by the government, was both corrupt and unreliable. The Hawala offer, not only to send the money, but to give you the money in US dollar if you didn't want the local currency, something Western Union doesn't offer you. And it's cheaper. It’s great you tackled this subject, but I would say not to the depth it deserved. The Hawala - money transfer businesses - share profit with their representative, so if the charge was $5 for every $100 then the rep. gets $2.5. These representatives find their own ways to ensure that everything is running smoothly, so Reps in the West keep detailed records of their transactions and inform the authorities of any abnormalities (like large transfers), and they’re audited. When Barakat was closed, my neighbor in Melbourne, who was their representative there, was able to recover the money he had in the bank because he kept records and was always audited.

Though Barakat was the biggest there were others to take their place, many others. So the money transfer business is still booming.

Final note. The Halawa business boomed before the civil war because the banking system, run by the government, was both corrupt and unreliable. The Hawala offer, not only to send the money, but to give you the money in US dollar if you didn’t want the local currency, something Western Union doesn’t offer you. And it’s cheaper.

]]> By: amina http://projectdiaspora.org/27/comment-page-1#comment-36 amina Tue, 15 Jan 2008 05:04:36 +0000 http://projectdiaspora.org/the-somalia-remittance-paradox.htm#comment-36 o yeah america loves to kick "them"(all non white countries) when they are down. alhumdillah they are a muslim country, thou o yeah america loves to kick “them”(all non white countries) when they are down.

alhumdillah they are a muslim country, thou

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