Filed under: somalia

Al-Shabab bans mobile phone money transfers in Somalia

Somali Islamist group al-Shabab has ordered mobile phone companies to stop their popular money transfer services, saying they are "unIslamic".

Despite years of conflict, Somalia's telecommunications sector is thriving. Mobile phones are a common sight in the capital, Mogadishu, and three companies currently offer mobile phone banking.

But the al-Qaeda linked group has given them three months to stop, and one mobile phone company official said he had "no option but to obey" the order.

Al-Shabab says mobile phone banking could expose Somalia to interference by Western countries, through the international partners of the Somali telecommunications firms.

Some observers believe the ban may be intended to block a rival to the traditional money transfer systems, known as hawala, which al-Shabab can influence, or tax, more easily.

The hundreds of thousands of Somalis living abroad use hawala and mobile phone banking to send money back to relatives still in the country. One Mogadishu resident told the BBC he was very disappointed by the ban.

"This is the sole lifeline of the whole economy - the service was so useful to both poor and rich people," he said.

Full story at the BBC:

http://www.bbc.co.uk/news/world-africa-11566247