Research Directorate, Immigration and Refugee Board of Canada

1. Overview of Socio-Economic Situation

According to the UN Population Fund (UNFPA), the population of Somalia in 2021 was 16.4 million (UN [2021]). World Bank data indicates that Somalia's population in 2020 was 15,893,219 (World Bank 2020a). The UNFPA data indicates that life expectancy at birth in Somalia in 2021 was 56 years for men and 60 years for women (UN [2021]).

According to sources, 85 percent of the population is of Somali ethnicity while the remaining 15 percent is Bantu or Arab (Australia 13 June 2017, para. 2.5) or Bantu and "other non-Somali" (US 28 Dec. 2021). Sources report that "almost" 100 percent (Australia 13 June 2017, para. 3.8) or "more than" 99 percent of the population is Sunni Muslim (US 12 May 2021, 2).

A country diagnostic report on Somalia, sent to the Research Directorate by a representative of the African Development Bank (AfDB), a "regional multilateral development finance institution" (AfDB n.d.), states that 55 percent of Somalis live in rural areas (AfDB [2021], 58). The US CIA World Factbook indicates that in 2021, 46.7 percent of the population lived in urban areas (US 28 Dec. 2021).

A report by the Somalia National Bureau of Statistics (SNBS; also abbreviated as NBS) states that in 2020 the country had a per capita GDP of US$471 (Somalia June 2021, 5). In contrast, World Bank data for 2020 indicates that Somalia had a per capita GDP of US$313.87 (World Bank 2020b). The AfDB report indicates that Somalia's "private sector contributes more than 90% of GDP," a "large extent" of which is made up of remittances from the Somali diaspora, which amount to "US[$]1.4 billion annually" (AfDB [2021], 49). According to a 2019 World Bank poverty and vulnerability assessment based on a survey carried out in 2016–2017 in rural and urban areas as well as nomads and internally displaced person (IDP) settlement households [1], access to wage labour employment and remittances is "better" in cities (World Bank Apr. 2019, 3, 35).

Sources report that Somalia's real GDP decreased by 0.3 percent in 2020 (Somalia June 2021, 2; AfDB 30 Nov. 2021, iv), which is the "lowest growth over the last economically unstable decade" (Somalia June 2021, 2). According to the World Bank's country overview on Somalia, in 2020 Somalia's economy "contract[ed]" by 1.5 percent (World Bank 30 Aug. 2021). Sources report that in 2020 Somalia faced flooding, "locust invasion," and the COVID-19 pandemic (AfDB 30 Nov. 2021, iv; Somalia June 2021, 2), which were "significant" factors in the country's economic performance that year (Somalia June 2021, 2).

The NBS provides the following information, derived from the 2020 Somali Health and Demographic Survey (SHDS 2020) [2], regarding wealth quintiles by type of residence/region:

Type of residence (percent)	Wealth Quintile
Lowest	Second	Middle	Fourth	Highest
Urban	3.6	17.3	22.9	27	29.3
Rural	31.6	31.8	20.6	10.6	5.4
Nomadic	90.3	4.9	2.3	1.9	0.5
TOTAL	20.1	19.6	20.1	20.1	20.1

(Somalia 2020, 44)

A report on the results of a January 2021 telephone survey [3] conducted by the World Bank on the impact of COVID-19 in Somalia indicates that Somalia had an overall employment rate of 49 percent, including 60 percent in urban areas, 54 percent in rural areas, 43 percent amongst IDPs, and 34 percent amongst nomads (World Bank Nov. 2021, 6). According to data from the NBS based on the 2019 Labour Force Survey (LFS), Somalia's unemployment rate in 2019 was 21.4 percent overall, 18.4 percent for men, 27.4 percent for women, 21.7 percent in urban areas, and 20.1 percent in rural areas (Somalia Nov. 2021, 38).

According to an AfDB interim country strategy paper on Somalia, sent to the Research Directorate by the AfDB representative, Somalia is "categorized" as a "low-income country" and a "transitional state" (AfDB 30 Nov. 2021, 3). The AfDB country diagnostic report also indicates that Somalia's "socio-economic fragility in recent years" has been "compounded" by "drivers" including "domestic insecurity, weak governance, poverty, the intricacies of clan-based politics, climate and environmental shocks and spatial, youth and gender exclusion" (AfDB [2021], 2). A European Asylum Support Office (EASO) country information report on socio-economic indicators in Mogadishu, Garowe, and Hargeisa states that Mogadishu "stands out with a poverty incidence above average" (EU Sept. 2021, 15). The World Bank indicates that in "most cities," "including Mogadishu," fewer than one third of "the poor" are employed in labour paid in "regular wages or salaries" (World Bank Jan. 2021, 125).

The AfDB notes that "weak" "enforcement" of tax laws results in "many taxpayers defaulting with impunity" (AfDB [2021], 21). The AfDB also states that "because of a lack of services," "private sector" companies "avoi[d] registration with the authorities," resulting in their "not paying taxes" (AfDB [2021], 49–50).

According to the AfDB, Somali women experience "poor access to income generation activities and social services" (AfDB [2021], 44). The same source adds that women are the "backbone" of the "small and medium-sized business[es]" in Mogadishu and "other cities" (AfDB [2021], 46). According to the World Bank, 43 percent of women and 67 percent of men "formally participate" in the labour market (World Bank Jan. 2021, 124).

The SHDS 2020 provides the following information regarding educational attainment for people aged 6 and over according to gender and type of residence:

Educational level attained (percent)	Men Type of Residence	Women Type of Residence
Urban	Rural	Nomadic	Urban	Rural	Nomadic
No education	40.5	48.9	77.8	44.6	48.9	83.7
Some primary	25.8	32.4	13.9	29.3	40.6	13.5
Completed primary	4.2	3.6	1.1	5.2	3.4	0.5
Some secondary	7	3.7	0.7	7	3	0.1
Completed secondary	9.9	6.1	1	7.3	2.5	0.1
Higher education	10.6	2.4	0.3	6.2	1.1	0.1
Do not know	2.1	2.8	5.2	0.5	0.5	2

(Somalia 2020, 36–37)

The SHDS 2020 provides the following information regarding women's literacy [4] according to type of residence and wealth quintile:

	Type of Residence	Wealth Quintile
Urban	Rural	Nomadic	Lowest	Second	Middle	Fourth	Highest
Literate (percent)	50.4	36.6	5.2	6.2	12.4	32.7	43.8	62.3
Cannot read (percent)	48.4	62.5	92.7	92.1	86.1	66.1	54.7	36.6

(Somalia 2020, 60)

The SHDS 2020 provides the following information regarding women (aged 15 to 49), by type of residence and wealth quintile, who reported having "serious problems in accessing health care for themselves" when they are "sick" (Somalia 2020, 126):

Problems accessing health care (percent)	Type of Residence	Wealth Quintile
Urban	Rural	Nomadic	Lowest	Second	Middle	Fourth	Highest
Getting permission to go for treatment	38.8	43.9	44.2	47.7	45.7	46.7	38.1	31
Getting money for treatment	58.5	66	71.9	77.3	71.4	66.2	59.8	48.7
Distance to health facility	51	62.2	73.8	78.8	70.8	61.2	53.3	42.1
Not wanting to go alone	39.8	45.8	55.8	56.8	54.6	48	41.1	31.9
At least one problem in accessing health care	66.1	72.9	80.3	84.8	78.5	72.9	68.4	56.9

(Somalia 2020, 126)

According to the SHDS 2020, 7.6 percent of women aged 15 to 49 have "experienced physical violence" in the previous 12 months (Somalia 2020, xxv).

The AfDB states that 40 percent of Somalia is "not under government control" (AfDB [2021], 58). According to the Government of Canada's travel advisory for Somalia, the rule of law in the country is "virtually non-existent" (Canada 16 Dec. 2021). The same source adds that "armed militias" are responsible for "high levels of crime" throughout the country, and "[a]rmed robberies, carjackings and murders occur regularly" (Canada 16 Dec. 2021).

According to the AfDB, as of 31 August 2021 Somalia had "confirmed" 17,399 cases of COVID-19 and had "recorded" 969 deaths from COVID-19 (AfDB 30 Nov. 2021, iv). The World Bank report on the January 2021 telephone survey notes that the "economic impacts of COVID-19 are still profound and widespread, while a notable improvement has been observed especially in urban, rural, and IDP populations" (World Bank Nov. 2021, 6). According to the same source, the unemployment rate increased to 49 percent in January 2021 compared to 39 percent in the previous round of the survey conducted in June and July 2020 (World Bank Nov. 2021, 3, 6). A World Bank blogpost by Asta Bareisaite, Gemechu Ayana Aga, and Taneem Ahad, on the impact of the COVID-19 pandemic on Somalia's private sector, based on a survey of 550 formal businesses across five cities including Mogadishu conducted by the World Bank and the UN Industrial Development Organization (UNIDO) in June–July 2020, indicates that there was a 31 percent reduction in "permanent full-time workers" since February 2020 compared with 2019 (Bareisaite, et al. 13 Jan. 2021). According to the NBS, remittances "declined" in the "first few" months of the COVID-19 pandemic, but were "stable" in the September 2021 quarter (Somalia 21 Nov. 2021, 9). However, the World Bank report on the telephone survey results indicates that, in January 2021, 56 percent of households reported a reduction in the "frequency" of remittances, compared to 50 percent in July 2020, and 62 percent reported a reduction in the "amount" of remittances in January 2021, compared to 31 percent in July 2020 (World Bank Nov. 2021, 7).

1.1 Mogadishu

According to the World Bank, the population of Mogadishu is estimated to be between 1.7 and 2.6 million (World Bank Jan. 2021, 74).

According to a report by the Finnish Immigration Service on a fact-finding mission to Mogadishu in March 2020, Somalia's capital has "severe" "humanitarian conditions" (Finland 7 Aug. 2020, 1, 3). The same source adds that the "most critical problems" are associated with "intense urbanisation, urban poverty and unemployment, chronic cholera, diarrhoea, lack of education and health services, and malnutrition" (Finland 7 Aug. 2020, 3).

The Finnish Immigration Service fact-finding report indicates that there are "hundreds of thousands" of IDPs in Mogadishu (Finland 7 Aug. 2020, 3). An article by Braam et al., based on a qualitative study on the impact of the COVID-19 pandemic on Baidoa and Mogadishu, published in the journal Conflict and Health [5] states that there are 497,000 IDPs in Mogadishu (Braam, et al. 2021, 1, 4).

The Finnish Immigration Service report, citing interviews with the UNHCR and international NGOs and organizations operating in Somalia, provides the following information regarding employment opportunities in Mogadishu:

Mogadishu offers limited business and employment opportunities. There is hardly any work on offer, and the best jobs are usually taken. The labour market in Somalia is very narrow, as the country has no industry that would employ a significant number of people. (Finland 7 Aug. 2020, 32, footnotes omitted)

The EASO report, citing estimates provided by Jutta Bakonyi, a professor in development and conflict at Durham University in the UK who has also written a book about Somalia's socio-economic situation (Durham University n.d.), in a telephone interview with EASO, states the following regarding wages in Mogadishu:

Local sources indicated that people working with the United Nations or international NGOs are better paid and can earn between 1 000 (starting salary) and 5 000 USD, which is why these jobs are in high demand. A member of parliament currently earns 3 500 USD. The salaries of most skilled jobs such as university lecturers, professors and civil servants were estimated to range between 400 and 700 USD (senior level), a teacher earns between 200 and 400 USD per month and a housemaid (full time) between 50 and 70 USD per month. (EU Sept. 2021, 45)

The Finnish Immigration Service report adds that according to an interview with an international NGO, wages for work on construction sites in Mogadishu "can be approx[imately] US$ 100 per month," and that according to an interview with the UNHCR, women selling fruit at marketplaces "usually earn a maximum of US$ 1-2 a day" (Finland 7 Aug. 2020, 33, 34).

The Finnish Immigration Service report indicates that according to the international NGO, it is "expensive" to live in Mogadishu, and according to an interview with a development organization operating in Somalia, "many" people engaging in "small-scale business" can "earn enough" money to purchase food but "sometimes" "do not earn anything at all" (Finland 7 Aug. 2020, 32). The same source adds that according to the development organization, "many families" are unable to send their children to school "[f]or cost-related reasons," and according to the international NGO, public health services are "very expensive" (Finland 7 Aug. 2020, 32).

According to the Government of Canada's Travel Advisory webpage, the political situation is "especially" "unpredictable" in Mogadishu, and there has been an "increase in attacks" there "resulting in civilian casualties and infrastructure damage" (Canada 16 Dec. 2021). The same source notes that the "threat of terrorism" exists particularly in "south-central Somalia" and in Mogadishu, and civilian casualties are "not uncommon" (Canada 16 Dec. 2021). The US Department of State's Country Reports on Terrorism 2020 indicates that al-Shabaab "conducts high-profile, sophisticated attacks on Somali citizens and government targets" in Mogadishu, and adds that in 2020 the Islamic State branch in Somalia (ISIS-Somalia) carried out "sporadic attacks in Puntland and Mogadishu" (US 16 Dec. 2021, 11, 37).

2. Currency and Availability of Cash

Sources indicate that the country's currency is the Somali shilling (SOS) (Canada 16 Dec. 2021; UN 18 Jan. 2022; Somalia n.d.a). Canada's Travel Advisory adds the exception to this is Somaliland where the currency is the Somaliland shilling (Canada 16 Dec. 2021). The AfDB, however, states that the US dollar is "for all practical purposes the de facto currency," and it "circulates freely" in Somalia (AfDB [2021], 25). Sources report that US dollars are commonly used and accepted across Somalia (AfDB [2021], 25; Canada 16 Dec. 2021; BNN Bloomberg 10 Aug. 2021). The AfDB adds that "[m]ost transactions, including mobile money payments[,] are conducted in USD" (AfDB [2021], 25). In correspondence with the Research Directorate, the officer in charge of the Somalia Programme Team of the UNIDO stated that the country's commercial banks operate "only" in US dollars (UN 16 Jan. 2022). According to an article by BNN Bloomberg, a "a Canada-based media company that also distributes Bloomberg content" (BNN Bloomberg 8 Jan. 2018), "transactions of everything from big-ticket projects to buying a cup of tea are done in [US] dollars via hard cash, banks or mobile money" due to "widespread counterfeit local-currency," a scarcity of "genuine notes in circulation," and the lack of newly printed bills (BNN Bloomberg 10 Aug. 2021).

According to a February 2017 report by the International Monetary Fund (IMF), the Central Bank of Somalia (CBS) has not issued any new Somali shilling banknotes since 1991 (IMF 27 Feb. 2017, 8). According to sources, the 1,000 Somali shilling note is the only note in circulation (UN 16 Jan. 2022; Somalia n.d.a). The UNIDO representative added that the local shilling currency is estimated to be "less than" 25 percent of the money in circulation and "most of it is fake or in tatters" (UN 16 Jan. 2022). According to the IMF report, "virtually all" SOS in circulation are "counterfeit" (IMF 27 Feb. 2017, 54).

In a follow-up interview with the Research Directorate, the UNIDO representative indicated that "in language," when discussing matters related to money, Somalis "never" reference the shilling and people "often do not know [its actual] value" (UN 18 Jan. 2022). The same source added that prices are "always" set in US dollar amounts (UN 18 Jan. 2022). The UNIDO representative also stated in correspondence, however, that the Somali shilling does continue to be "a significant medium of exchange for marginal transactions," making it "crucial for micro businesses and the poorer sections of the population" (UN 16 Jan. 2022).

According to a quarterly statistical report by the NBS, 100 percent of bank deposits are made in US dollars (Somalia 21 Nov. 2021, 9). The UNIDO representative added that since they first arrived in Somalia in 2019, they have "never encountered" a Somali shilling bank account nor a hard currency shilling note (UN 18 Jan. 2022).

3. Infrastructure

The AfDB states that there is a "lack of infrastructure" in Somalia, "notably electricity and roads" (AfDB [2021], 49).

According to the UNIDO representative, banking activities are "still not widely common" in Somalia (UN 18 Jan. 2022). The same source added that Somaliland is "not very economically advanced," and Puntland is "slightly more economically developed" with a "more sophisticated financial sector" (UN 18 Jan. 2022).

According to a January 2020 UNIDO report sent to the Research Directorate by the UNIDO representative, Somalia's financial system is composed of the "Central Bank (including in Somaliland), commercial banks, microfinance institutions (MFIs), money transfer businesses (MTBs), and mobile network operators (MNOs) providing mobile money services" (UN Jan. 2020, 7).

A 2018 World Bank report on the economic situation in Somalia with a focus on mobile money indicates that "around" 15 percent of Somalis have a bank account, including 7 percent of women; under 5 percent of those with bank accounts are "active users" (World Bank Aug. 2018, 16). The SHDS 2020 states that 3.5 percent of women aged 15 and older have an account at a bank or "other financial institution" and 63.6 percent have a "mobile-money account" (Somalia 2020, xxv).

3.1 Access to and Availability of Banking Activities

Sources report that Somalia has 13 "licensed" ["commercial" (Business Insider 8 July 2021)] banks (Somalia n.d.b; Business Insider 8 July 2021), of which the CBS indicates that 11 are "operational" and 2 are "not yet operational" (Somalia n.d.b). According to the AfDB, Somalia's commercial banks "mostly provide trade financing and money exchange services," but also "have subsidiary units for MTBs, mobile money operations, and insurance" (AfDB [2021], 27).

The AfDB states that "part of the reasons" why Somalia does not have "correspondent banking credentials with established foreign banks" is the "general lack of regulation of the financial sector operators" and the "resulting informality of transactions" (AfDB [2021], 27).

According to the UNIDO report, Somalia's payment system is "fairly advanced," "primarily" owing to the "widespread existence of private money transfer operators (MTO)" that act as "informal banking networks" (UN Jan. 2020, 6). The same source adds that "in the last couple of years," commercial banks are "now playing an important role" in the country's payment system (UN Jan. 2020, 6–7).

According to the UNIDO representative, "most" people who live "outside of Mogadishu" will not have a bank account, and there is "more" mobile banking in rural areas (UN 18 Jan. 2022). The same source stated that in 2019, "none" of Somalia's banks had branches outside of Mogadishu (UN 18 Jan. 2022). The same source added that now the International Bank of Somalia (IBS Bank) has two branches outside of Mogadishu and "some" of the other banks have begun opening branches outside of the capital as well (UN 18 Jan. 2022). According to the UNIDO representative, although the availability of bank accounts in Mogadishu is "greater," people there "still only" open bank accounts for "functional reasons (often related to business, or to receive their pay)" and bank accounts are "still" not opened for "societal or cultural reasons"; people do not open bank accounts when they reach a certain age, as "we see in other countries or cultures" (UN 18 Jan. 2022).

Sources report that Somalia has automated teller machines (ATMs) (Business Insider 8 July 2021; UN 18 Jan. 2022). An article by Business Insider, an online global news publication, states that Somalia's first ATM was "installed" in October 2014 by Salaam Bank to "facilitate cash withdrawals for diaspora returnees and foreigners" (Business Insider 8 July 2021). The Government of Canada's travel advisory webpage, however, states that Somalia does not have automated banking machines (ABMs) and notes that credit cards and traveller's cheques are "not accepted" in the country (Canada 16 Dec. 2021). The UNIDO representative indicated that ATMs are "spreading around Somalia" with the situation "improving," and added that in 2019 the Mogadishu airport had 2 ATMs compared with its current "10 or 12" (UN 18 Jan. 2022). The same source stated that all ATMs in Somalia "can only" distribute money in US dollars and it is "not possible" to withdraw Somali shillings from them (UN 18 Jan. 2022).

3.1.1 Mobile Money System

The World Bank report states that, in 2017, "about" 73 percent of Somalis "had access to a mobile money account," including 75 percent of men and 70 percent of women (World Bank Aug. 2018, vii, 16). The AfDB indicates that mobile money usage has a "penetration among households of above 70%" (AfDB [2021], 50). According to the UNIDO report, mobile money "[p]enetration rates are highest in urban areas (83 percent)" as well as in IDP camps (72 percent), while they are "marginally low[er]" in rural areas (55 percent) (UN Jan. 2020, 13). The same source adds that "[a]bout 36 percent of GDP flows through mobile money systems" (UN Jan. 2020, 13). The UNIDO representative indicated that mobile money transfers are used "everywhere, by people of all ages, and all genders" (UN 18 Jan. 2022).

Sources report that an estimated US$2.7 billion worth of mobile money transactions occur per month (UN Jan. 2020, 13; World Bank Aug. 2018, 14). The World Bank adds that there are an estimated 155 million mobile money transactions each month (World Bank Aug. 2018, 14). In contrast, according to the AfDB, MTBs "handle" an average of "US[$]1.2 billion in monthly transactions" (AfDB [2021], 50). According to the UNIDO representative, the "level of utilization" and "level of diffusion" of mobile money "instruments" across Somalia is "quite remarkable" (UN 18 Jan. 2022). The same source added that people "often" do not carry cash with them, and the mobile money system allows users to make purchases by dialing a code on their mobile phone (UN 18 Jan. 2022).

The SHDS 2020 provides the following information regarding women (aged 15 to 49), by type of residence and wealth quintile, who "use [a] mobile phone for financial transactions":

	Type of Residence	Wealth Quintile
Urban	Rural	Nomadic	Lowest	Second	Middle	Fourth	Highest
Use a mobile phone for financial transactions (percent)	78.2	67.7	42.4	39.7	53.3	68.1	76.6	80.6

(Somalia 2020, 240)

The AfDB states that since 1991, money transfer businesses [MTBs; hawalas [6]] have "dominated" Somalia's financial sector and, together with "mobile banking firms," "comprise the apex" of the country's private financial sector businesses (AfDB [2021], 27, 50). The UNIDO report indicates that mobile money is the "main transaction instrument" for both individuals and businesses (UN Jan. 2020, 7). According to the 2018 World Bank report, Somalia has "one of the most active mobile money markets in the world" and mobile money has "superseded" the use of hard currency (World Bank Aug. 2018, 14).

The AfDB states that access to mobile banking services is "near universal" in the country (AfDB [2021], 26). The 2018 World Bank report indicates that mobile money is an "essential and widespread" component of Somalia's "economic eco-system" and has become "the main transaction instrument used by both individuals and businesses" (World Bank Aug. 2018, vii). The same source adds that mobile money is the "main channel for accessing financial services," including for "the exchange of goods and services," owing to low confidence in the Somali shilling, the "difficulty" of paying for small transactions with US dollars, and the "low transaction costs" and "ease of use" associated with mobile money (World Bank Aug. 2018, viii). According to the UNIDO report, "MTOs are often the only remittance option for many poor migrants and their families who have no other point of access to the formal financial sector" (UN Jan. 2020, 12). The same source adds that remittances comprise "about 6 percent of the value of all mobile money transfers" (UN Jan. 2020, 12).

The AfDB states that MTBs have "considerable financial clout" and "operate largely informally" (AfDB [2021], 27). According to the UNIDO report, mobile money services include depositing "eMoney" into mobile money accounts, making cash withdrawals, making merchant payment transactions, and producing salary receipts (UN Jan. 2020, 13). The same source indicates that MTOs "typically rely" on banks for financial services including cheque collection, deposit and payroll services, and wire transfers (UN Jan. 2020, 12).

The 2018 World Bank report indicates that all of Somalia's mobile network operators offer mobile money services (World Bank Aug. 2018, 17). The UNIDO report indicates that amongst Somalia's mobile service providers, the mobile money services offered by Hormuud Telecom (through its EVC+) and Telesom (through its Zaad) are the "monopolistic players providing mobile money facilities" (UN Jan. 2020, 13). The UNIDO representative stated that Hormuud's mobile money service is used by 3 million people in Somalia (UN 16 Jan. 2022).

The UNIDO report states that MTOs can be "categorized" into those that "operate locally and those that operate internationally" (UN Jan. 2020, 12). The same sources indicates that Somali MTOs usually charge "around" 5 percent fees on transactions under US$1,000 and 3 to 4 percent for amounts above US$1,000, which are "lower commission fees than their Western counterparts" such as Western Union and MoneyGram (UN Jan. 2020, 12).

According to a study conducted by UNIDO, in which 15 "small" and "micro business owners" in Mogadishu were interviewed, respondents "overwhelmingly confirm[ed their] usage of mobile money" which they "used extensively both for business like buying goods and receiving payments from buyers and also for individual day to day use" (UN Jan. 2020, 14).

The UNIDO representative stated that one "issue" related to the mobile money system is that it "can be difficult to withdraw money," and this is part of why Somalia is "a largely cashless system" (UN 18 Jan. 2022). The same source added that there "are also issues of fraud" with electronic money transfers, since the system does not have the capacity for "mass" "trac[ing]" (UN 18 Jan. 2022). US Country Reports on Terrorism 2020 states that al-Shabaab obtains funds through means including remittances and "other money transfers from the Somali diaspora (although these funds are not always intended to support al-Shabaab members)" (US 16 Dec. 2021, 309). The same source adds that as part of the Somali government's efforts at "countering the financing of terrorism," it has "enacted stricter mobile money regulations for Somalia-based banks and telecommunications companies" (US 16 Dec. 2021, 38).

3.1.2 Bank Accounts

The AfDB estimates that Somalia's "banking services" have a "penetration rate" "estimated at about 15.5" percent of the population, and states that between 2016 and 2020 the country's "[t]otal banking assets tripled (in nominal USD terms)" to US[$]604 million (AfDB [2021], 26).

The SHDS 2020 provides the following information regarding women (aged 15 to 49), by type of residence and wealth quintile, who "have and use" an account with a "bank or other financial institution" (Somalia 2020, 240):

	Type of Residence	Wealth Quintile
Urban	Rural	Nomadic	Lowest	Second	Middle	Fourth	Highest
Have and use a bank account (percent)	5.9	2.6	1.4	1	1.8	2.6	3.6	7.9

(Somalia 2020, 240)

According to the UNIDO report, "informal resources have indicated" that a "significant increase in bank accounts" has led to "approximately 28 percent of the population" having a "bank account" at one of the "local commercial banks" (UN Jan. 2020, 7).

3.2 Access to and Availability of Telecommunications

The AfDB states that Somalia has "several" mobile phone providers, and that "costs to the consumer" are "quite competitive in regional terms" (AfDB [2021], 51). The same source adds that in early 2020, there were estimated to be "close to 7.5 million mobile phone connections in Somalia," which constitutes a "population penetration" of "over" 50 percent (AfDB [2021], 51).

The SHDS 2020 provides the following data regarding Somali household types and household possessions:

Type of household	Percentage of Household Possessions (percent)
Non-Mobile Telephone	Computer	Internet	Radio	Television	Mobile Phone
Urban	7.1	11	18.6	23	32.1	81
Rural	2	1.2	2.3	15.5	4.6	6.7
Nomadic	3.4	0.2	1.2	8.4	0.5	59.3
TOTAL	5.3	6.9	11.9	19.1	20.5	74.4

(Somalia 2020, 29, 32, 43)

World Bank data for 2018 states that there are 51 mobile cellular subscriptions for every 100 people in Somalia (World Bank 2018). According to the SHDS 2020, 75.3 percent of women own a mobile telephone (Somalia 2020, xxiv). The SHDS 2020 provides the following information regarding women (aged 15 to 49), by type of residence and wealth quintile, who own a mobile phone (Somalia 2020, 240):

	Type of Residence	Wealth Quintile
Urban	Rural	Nomadic	Lowest	Second	Middle	Fourth	Highest
Own a mobile phone (percent)	84.9	77.5	61.2	58	69.6	75.9	82.8	89.1

(Somalia 2020, 240)

The SHDS 2020 indicates that 15.1 percent of people had used the Internet in the preceding 12 months (Somalia 2020, xxv). The SHDS 2020 provides the following information regarding internet usage (over the preceding 12 months) by women aged 15 to 49 according to type of residence and wealth quintile:

Internet usage (percent)	Type of Residence	Wealth Quintile
Urban	Rural	Nomadic	Lowest	Second	Middle	Fourth	Highest
Used the Internet in the past 12 months	29.9	10.5	0.7	0.5	1.7	9	19.1	41.6
Almost every day	70	62.8	n/a	n/a	32	48.9	65.6	74.1
Not at all	5.1	7	n/a	n/a	14.2	13.5	5.3	4.1

(Somalia 2020, 62)

According to the AfDB, "Somali entrepreneurs backed by expertise from China, Korea and Europe control" the information and communications technology (ICT) sector, and these "entrepreneurs" "provide a range of services" from "banking to education" (AfDB [2021], 51).

According to the annual report for 2020 to 2021 by Somalia's National Communications Authority (NCA), which is the country's "supervisor and regulator of the communications services" under the National Communications Law of 2017, on 25 July 2020 the NCA "implemented" the Unified Licencing Framework, a "new ICT licencing framework," and initiated the "[p]rocess of issuing licenses to incumbent operators" (Somalia 6 Oct. 2021, 8). The same source indicates that this was the "first time in 30 years" that "Telecommunications Licenses" were issued in the country, and adds that although the "process of the licensing is still underway," "[a]ll major Telecommunications Operators have been licensed under the new framework" (Somalia 6 Oct. 2021, 11). According to information available on its website, the NCA has issued Unified [Combined] Communications Infrastructure and Services Provider (CISP) [7] licenses to seven companies [8], and one International Communications Infrastructure Services Provider (CIP) licence to Dalkom Somalia [a "[l]imited liability company registered in Somalia and [the] United Arab Emirates" (Dalkom Somalia n.d.)] (Somalia n.d.c).

The NCA annual report indicates that in 2021 it issued a "Digital Terrestrial TV Multiplexer Network license" to four companies and a "Commercial Fm Broadcasting Station License" to three companies (Somalia 6 Oct. 2021, 16).

The Government of Canada travel advisory indicates that international telephone services and Internet access are "limited to larger cities" and services there are "unreliable" (Canada 16 Dec. 2021).

3.3 Access to and Availability of Utilities

The SHDS 2020 indicates that 49.2 percent of the population has access to electricity (Somalia 2020, xxiv). The AfDB, however, states that "[u]niversal access to electricity" is "about 16% compared to the average for Sub-Saharan Africa of 48%" (AfDB [2021], 54). According to World Bank data, 36 percent of Somalis in 2019 had access to electricity (World Bank 2019). The Government of Canada travel advisory page indicates that "[e]lectricity and water provisions are not assured" in Somalia (Canada 16 Dec. 2021).

SHDS 2020 data indicates that 44.3 percent of Somali households "use electricity," "with variations in geographical locations and type of residence," and 66 percent of urban households "use electricity for lighting," compared with 17 percent of rural households and under 1 percent of "nomadic" households (Somalia 2020, 28). The US Agency for International Development (USAID) states that 1 percent of the rural population has access to electricity, compared with 35 percent of the urban population (US 30 June 2020). The same source indicates that 2.4 million total households are "without [p]ower" (US 30 June 2020). USAID adds that annual per capita electricity consumption is "among the lowest in Africa" (US 30 June 2020).

According to the AfDB, Somalis "pay up to US[$]1/kwh for electricity," "compared to a tenth of that in neighbouring countries" (AfDB [2021], 54). USAID states that Somali customers pay a "high rate" of 50–125 cents /kWh," in contrast to 0.15 cents/kWh in Kenya and 0.6 cents/kWh in Ethiopia (US 30 June 2020). The AfDB indicates that "some 40" "mainly [I]ndigenous" "companies" provide power in Mogadishu, with a "similar variety of suppliers" found in Somaliland and Puntland as well (AfDB [2021], 54).

Information provided by USAID indicates that since 1991 electricity service has "solely been" a role played by the Somali private sector (US 30 June 2020).

The World Bank poverty and vulnerability report notes that access to "basic services," including "electricity, water, sanitation, improved housing, education, and health" is "better" in Mogadishu than in "other urban areas" (World Bank Apr. 2019, 35).

4. Economic Activity and Characteristics

According to the UNIDO representative, some Somali banks are now offering Mastercard products to Somali clients, but only debit cards and prepaid cards, not credit cards (UN 18 Jan. 2022). Information provided on IBS Bank's website indicates that it offers four types of Mastercard "debit cards" (IBS Bank n.d.).

Sources report that in July 2021 Visa partnered with IBS Bank to begin "offer[ing] Visa card services to its customers" (Business Insider 8 July 2021; The Africa Report 9 July 2021). The UNIDO representative, however, stated that no Somali banks are yet offering Visa services (UN 18 Jan. 2022).

4.1 Employment Remuneration

According to the UNIDO representative, "most" Somalis who are employed are paid their income in US dollars, and added that people including "civil servants, soldiers, commercial banks, and employees at large companies" (UN 16 Jan. 2022) are "paid by direct deposit into their US dollar accounts" (UN 18 Jan. 2022). The same source indicated that "unskilled laborers or informal employees" are paid in cash [US dollars (UN 18 Jan. 2022)] or through mobile money transfer (Hormuud's EVC service) (UN 16 Jan. 2022).

According to a report by the International Organization for Migration (IOM) Somalia, the "vast majority of IDP families in Baidoa live off jobs in the agro-pastoralist sector, such as farms and livestock" (UN 30 July 2021, 39). A 45-year-old single mother to seven children, who was profiled in the IOM report and lived in an IDP site in Jiidow Bakol, reported "'rely[ing] on [her] two eldest sons who go to Baidoa market daily looking for jobs'," and who occasionally return with "'[$]2 USD from construction'" (UN 30 July 2021, 40). According to the IOM report, the woman received "e-vouchers offered by [the] IOM," which she "was able to [use to] buy" "almost every item needed to build a simple shelter … including timber, plastic sheeting, strong poles, nails, door hinges, door locks and structural materials" (UN 30 July 2021, 40).

This Response was prepared after researching publicly accessible information currently available to the Research Directorate within time constraints. This Response is not, and does not purport to be, conclusive as to the merit of any particular claim for refugee protection. Please find below the list of sources consulted in researching this Information Request.

Notes

[1] The "almost 6,400" rural and urban households consulted in Wave 2 of the Somali High Frequency Survey (SHFS) were located across "Central regions, Jubbaland, Puntland, Somaliland, and South West as well as urban areas in Banadir," as were some of the IDP settlement households included in the survey (World Bank Apr. 2019, 3). Other IDP settlement households consulted in Wave 2 were located in "IDP host communities" (World Bank Apr. 2019, 3).

[2] The Somali Health and Demographic Survey 2020 (SDHS 2020), which was conducted from 2018 to 2019 by Somalia's National Bureau of Statistics (SNBS or NBS), is based on interviews with 15,826 households (and 16,486 individual women) (Somalia 2020, v, 12).

[3] The "second wave" of the World Bank's nationally representative Somali High-Frequency Phone Surveys (SHFPS), conducted in January 2021, sampled 1,756 households, including 518 in urban areas, 516 in rural areas, 413 internally displaced person (IDP) households (including those living inside and outside formal IDP sites), and 309 nomadic households (World Bank Nov. 2021, 3).

[4] According to the SHDS 2020, "literate" "[r]efers to [those] who attended higher education and [those] who can read a whole sentence or part of the sentence" (Somalia 2020, 60).

[5] Conflict and Health is a peer-reviewed "open access journal documenting the public health impacts and responses related to armed conflict, humanitarian crises and forced migration" (Conflict and Health n.d.).

[6] According to a report by the Humanitarian Policy Group (HPG) of the Overseas Development Institute (ODI), hawala money-transfer services involve the sending and receiving of money through brokers in each of the two locations (ODI Mar. 2019, 3). According to a report by the Global Initiative Against Transnational Organized Crime (GI-TOC), this system is "necessary in environments without access to the formal banking system" (GI-TOC Sept. 2020, 8–9).

[7] The Unified [Combined] Communications Infrastructure and Service Provider (CISP) license issued by the National Communications Authority (NCA) "allows operators to obtain" a license for "communications infrastructure, services, and applications in one license," and permits the provision of services including land and mobile cellular systems, and internet service (Somalia 6 Oct. 2021, 9–10).

[8] The seven companies that have received a CISP license are: Hormuud Telecom Somalia, Golis Telecom Somalia, Telesom Company, Nationlink Telecom, Somtel Somalia, Amtel Somalia, and Somlink (Somalia n.d.c).

References

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Additional Sources Consulted

Oral sources: African Development Bank; Association of African Central Banks; International Fund for Agricultural Development; UN – International Labour Organization, UN Human Settlements Programme; World Bank.

Internet sites, including: Africa Research Institute; African Review of Business and Technology; Al Jazeera; AllAfrica; Amnesty International; Bertelsmann Stiftung; The Borgen Project; The Boston Globe; Centre for Humanitarian Change; CIO Africa; The EastAfrican; ecoi.net; EVCPlus.com; The Exchange; Factiva; FurtherAfrica; Garowe Online; Global Finance; Global Shelter Cluster; GlobeNewswire; Goobjoog News; Heritage Institute for Policy Studies; Hiiraan Online; Horn Observer; Human Rights Watch; International Crisis Group; International Fund for Agricultural Development; Jane's Country Risk Daily Report; KAALO Aid and Development; Mareeg; MyBank; Reuters; Rift Valley Institute; Somalia – Ministry of Planning, Investment and Economic Development; Tech Gist Africa; Telecom Review Africa; UN – International Labour Organization, Refworld, UN Human Settlements Programme; Voice of America; World Inequality Database.