DAHABSHIIL CEO CALLS FOR SUPPORT FROM INTERNATIONAL COMMUNITY TO HELP SOMALIS
The CEO of the largest international remittance business in the Horn of Africa has called for support from the international community to work with the private sector in Somalia. Abdirashid Duale, CEO of Dahabshiil, also says external recognition is required to support the private sector in the reconstruction and development of the region.
Speaking at the United Nations Political, Security and Reconstruction Conference for Somalia, in Istanbul, Mr. Duale highlighted the constraints facing Somali businesses and called for reforms to support the private sector.
The conference, co-hosted by the Turkish government and UN Secretary General, Ban Ki-moon, was attended by foreign ministers, business leaders, and leading financial institutions, including the World Bank, African Development Bank and Islamic Development Bank.
The conference, which hosted discussions on security issues and global threats facing Somalia, also provided a platform for businesses and governments to launch new initiatives for reconstruction and job creation in the region.
Addressing the delegates, Mr. Duale said that the private sector in Somalia was strong but needed international support to help it grow, create more jobs and encourage investment in the region.
"The private sector in some of the regions still faces enormous challenges that result from the political instability and security concerns. But there is a strong entrepreneurial spirit in our country and I believe, with the support of the international community, the private sector can play a key role in the reconstruction and development."
He said one of the constraints businesses face is the international perception of Somalia and a lack of understanding of how the private sector works, particularly from international banks, which has made it harder for some businesses to operate.
"We ask for the international community to understand the constraints the business community faces and help us develop a framework for future peace and prosperity."
Duale continued: "Dahabshiil has a key role to play in the reconstruction; both as the largest private employer in the region and through its ability to get funds where they are needed."
Dahabshiil continues to support the development of Somalia by investing part of its annual profits into community regeneration projects, involving the development of schools, hospitals, agriculture and sanitation.
Thousands of Somalis rely on remittances that are sent from overseas. Alongside individuals, over 95% of the international organisations in Somalia, including the United Nations, World Health Organisation, World Bank, Oxfam and Save the Children, rely on Dahabshiil to provide payment services for their staff, contractors, government institutions and partner NGOs.
Duale added: "Transferring remittances is a lifeline for many people in the developing world whose friends or family live abroad and regularly send money home."
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Media contacts:
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Notes to editors:
1. About Dahabshiil
Dahabshiil is the 'rags to riches' story of an African entrepreneur, who had lost everything, all that they owned, in the Somali civil war. With nothing but a strong network of contacts they set about rebuilding their company, which two decades later is now one of the largest international money transfer businesses in the Horn of Africa.
Today Dahabshiil employs more than 2,000 people across 144 countries, with offices in London and Dubai, and provides services to some of the world's leading humanitarian organisations, including the United Nations, Oxfam, the Department for International Development and Save the Children.
Dahabshiil was founded by Mohamed Saed Duale in 1970. He started trading as a remittance broker, selling imported goods from Gulf States on behalf of migrant workers and transferring the proceeds back to their families.
In 1971 Dahabshiil opened its first shop in Burao, the capital city of the Togdheer province in Somaliland.
Over the next 18 years, Mohamed and his son, Abdirashid Duale (who worked in the shop whilst also attending school) expanded the business to become the leading remittance broker in the Horn of Africa.
In 1989, the business collapsed as civil war broke out across Somalia, forcing half a million Somalis to flee to seek refuge in neighbouring Ethiopia.
With no money or business, except for a strong network of business associates, Mohamed set up a new remittance venture in Ethiopia, enabling Somali refugees to send goods back to displaced family members.
Coinciding with an influx of Somali immigrants to the UK, Dahabshiil set up an office in East London.
After the war, Mohamed returned to Somali to rebuild Dahabshiil, entrusting the running of the London office to his son, Abdirashid. As the UK's Somali population grew (to around 250,000 today), so did Dahabshiil.
20 years on from the war, Dahabshiil's original values still ring true: trust and responsibility. The business has zero debt, remains entirely family-owned and is committed to its fair commission fee policy.
Dahabshiil continues to support the Somali community both in Africa and abroad, investing more than 5 per cent of its annual profits into community regeneration projects involving the development of schools, hospitals, agriculture and sanitation.
Today, run by Abdirashid as CEO and his father Mohamed as Chairman, Dahabshiil has over 1000 payout locations across the world (400 across the Horn of Africa) and is arguably one of the most important multinational businesses in Africa – providing a vital money transfer lifeline to those living in the African region.
2. About Dahabshiil's Global CSR Initiatives
Dahabshiil has committed millions of US dollars to education and health as well as supporting relief efforts which has had a real impact on the lives of needy communities around the Horn of Africa. Dahabshiil has honored its corporate social responsibility by providing money transfer services and other financial services to humanitarian and international development organizations including United Nations, Save the Children, Oxfam and Care International. Dahabshiil believes that these services are essential for the above organisations in order for them to deliver much needed aid to communities.
The United Nations describes Dahabshiil services as "the only safe and efficient option to transfer funds to projects.
§ Support for Education: In an Interview Prof. Ahmed Abdullahi Boqore, Deputy Director of Amuud University said that, apart from providing facilities and infrastructure to learning institutions, Dahabshiil has gone one step further by donating their valuable time and resources free of charge to various institutions. Meanwhile Mohamed Ali a student at Mogadisho University said, "Dahabshiil Company not only supports the academics but also sports and other extra-curricular activities so as to bring forth well-rounded scholars."
§ Promotion of health: Dahabshiil is very proud to be one of the biggest investors from the private sector that supports hospitals and health centres in East and Central Africa. In these regions Dahabshiil helps develop infrastructure while at the same time providing financial support, equipment and drugs to help with people's health needs.
§ The health institutions that Dahabshiil has supported, over the past few years, include Las Anod Hospital, Burao Hospital, Garoowe hospital, Hargeisa General Hospital, Benadir Hospital, Madina Hospital and Kaysenay Hospital-institutions that are at the heart of provision of good health for the people.
§ Support with Relief efforts: Being largely semi-arid, the Horn of Africa is a food and water deficit region and there are often instances where sections of society are in dire need of relief food. Dahabshiil donates funds to aid relief efforts, working along with other humanitarian and international development organizations including United Nations and the Diaspora.
3. Dahabshiil's Global Services
Dahabshiil is committed towards its social responsibility as a corporate entity and will continue supporting projects that promote overall development in society and empower the people to be better at what they do.
§ E-card & E-cash: In the spirit of innovation and providing cutting-edge services Dahabshiil has launched a Debit Card, the first of its kind in the whole of Somalia. The Debit Card will promote a cashless society which is safer, and will allow the customers to access money in hundreds of locations which are registered with Dahabshiil; these are hotels, restaurants, supermarkets, petrol stations, etc.
§ Dahabshil Bank International: Abdirashid Duale in an interview to BBC radio said, "Dahabshil Bank International is another evolutionary step in our 40 year relationship with our customers. An international bank in Djibouti it will incorporate Islamic Banking laws, building on our client's trust and giving them the quality service they are used to from Dahabshiil financial services."
When asked what Dahabshil Bank International had to offer the business sector in Djibouti? He answered, "Dahabshil Bank International will be creating new jobs as well as being involved in community service, capacity building projects and on-going support for worthwhile charities. We are looking at future plans of opening a branch of Dahabshil Bank International in all the countries that we already serve through money transfer & Foreign exchange bureau"
4. About Remittances
Remittances represent a vital lifeline for ordinary Somalis caught in the middle of warring clans and political factions. According to long-standing tradition, almost everyone in the diaspora is expected to send money home – and this is particularly so for those living in high-income countries. Based on surveys conducted by Dahabshiil in 2004, both women (47%) and men (53%) are equally likely to send money home. The average amount of most transactions is $100, which is the typical amount that an average family needs to live on for a month in Somalia.
The recipients of these remittances live throughout the world, but most are in Somalia itself, and in Ethiopia, Kenya and Sudan. The overwhelming majority – 92% – are urban. This is probably because most of the Somali diaspora are also from urban backgrounds, and send money to their relatives living in urban areas to pay for rent, food, school fees, medical bills and other supplies. The rural population is more likely to engage in subsistence agriculture to meet its basic needs. Women and men are equally likely to be recipients of remittances from abroad.
The World Bank estimates that remittance worth about $1 billion (£610 million) a year reached Somalia from émigrés in Britain, the United States, Sweden and the Gulf. Industry experts reckon that Dahabshiil may be responsible for handling two thirds of that and as much as half may reach the semi-autonomous region of Somaliland.
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