mobile money and somali social networks cultivating monetary alternatives in a volatile world

November 20 2013 iHub Nairobi

Afrikoin Emerging Africa Digital Money Trends & Innovation

Mobile money and Somali social networks Cultivating monetary alternatives in a

volatile world

Centre of African Studies University of Edinburgh

Gianluca Iazzolino



Fast Money

Medium Money

Slow Money



Eastleigh – Mogadishu Kidogo

trade Somali diaspora

transnational networks

Money laundering

refugees

Kenyan Somalis

Low-end globalization

Cheap stuff

Terrorist hideout

investments

remittances



Volatile Times

2012 Sep Nov Jan 2013

Mar May Jul Sep Nov 2013

Hawala company Dahabshiil granted reprieve

5 Nov

Westgate Mall Attack 21 Sep

Barclay's decision postponed

30 Aug

Kenya Supreme Court rules against GoK directive

12 Aug

SS CB announces restrictions on the allocation of hard currency

15 Jun

Barclay UK announces it will be closing MTO accounts in Britain, including Dahabshiil, by August 31 2013

15 May

Kenyan General Elections

4 Mar

Flight of Somali refugees and capital from Eastleigh

21 Jan

GoK Directive ordering refugees encampment

13 Dec

Explosion outside the Hidaya mosque: five dead

7 Dec

IED detonated on a passenger bus, ten dead

12 Nov

Attack on the Anglican Church of Kenya, Juja road

30 Sep

Somali Presidential Elections

10 Sep



Hawala Lifeline

Terrorism financing



Hawala Lifeline

Terrorism financing

A Credit/Debt Transfer System

A Network of Providers of Banking Services

A Network of Providers of Investment Services



Hawala Lifeline

Terrorism financing

A Credit/Debt Transfer System

A Network of Providers of Banking Services

A Network of Providers of Investment Services

cheap

multicurrency

no ID required

international

large amount of money

under scrutiny



Flexible

Safe

Private

ID required

KSh

Small money

Technical/cultural barriers for seniors

vulnerable to monitoring

December 4-5 2013 UC Irvine

IMTFI's Fifth Annual Conference for Funded Researchers

Hawala/M-Pesa relations

Replacement

Informal Inter-Operability



Hawala agents

Money vendors Customers USD

USD

KSh

USD

KSH KSh

Eastleigh’s Exchange Market



Hawala agents


USD

Gold sellers

KSh

KSH

USD

KSH

KSh

KSh




Hawala agents


USD

investors

Gold sellers

KSh

KSH

KSh

USD

KSH

KSh

M-Pesa agents

KSH

Various businesses

KSH

USD

USD KSh

KSh

Wholesalers

USD




“Gendered” values and temporal axis Men

Women

Long Term

Short Term

Livestock

Hard Currencies

Big Businesses (oil, transport...)

Small Businesses (Retailers)

Medium Businesses (Wholesalers)

Gold

Mobile Money

Local Currencies

Camel Milk Trade

December 4-5 2013 UC Irvine

IMTFI's Fifth Annual Conference for Funded Researchers

Cultivation of multiplicity or

“You never know what may happen tomorrow”

Mobility as a self-perpetuating strategy, revolving around the pursuit of resources that allow crossing borders, boundaries and thresholds (documents - ID, passports, UNHCR mandates, degrees – and hard currencies)



What Next?

?

mobile money and somali social networks cultivating monetary alternatives in a volatile world

Economy & Finance