Before the introduction of Mobile Money, most transactions in Somaliland were cash based. Mobile money has become a convenient solution as it eases daily transactions. Current mobile money is denominated in dollars of transactions more than USD 100, and in Somaliland Shillings of transactions less than USD 100, after the Bank of Somaliland’s regulation during the year 2018.

There are two mobile money service providers in Somaliland: ZAAD mobile money services provided by Telesom and eDahab payment services provided by Somtel. It was 2009, when the Somaliland’s biggest mobile network operator, Telesom, launched their mobile payment service “ZAAD Service”, Telesom has become the first telecommunication firm that has pioneered the introduction of mobile money exchange in the world in 2018. This innovation has eased the way of Telesom’s CEO Abdikarim Mohamed Eid to win the ArfricaCom’s best CEO award in year 2018.

Currently, there are no mobile money services regulations and the regulator has the challenge of providing an adequate regulatory framework that is flexible enough to allow for further innovation and strict enough to protect the consumer and ensure financial stability. However, in year 2018, the Bank of Somaliland has drafted National Payment System (NPS) Act with the support of World Bank group. The NPS bill is now with the President and the Council of Ministers.

The bill is intended to set a base for the use of mobile money, which would for example include: