Banking Grocery Remittance Transmission to Rural Area

Location: Gedo region
Aim: Enabling the rural remittance recipients in Gedo region (South Somalia) to receive their remittances in a save, inexpensive and efficient manner which does not require them to travel the urban areas.
  • Establishment of a reliable and efficient system to transfer remittances in 3 pilot villages in Somalia;
  • ƒProvided training programmes to village shop owners and other money transfer organisations on finance and administration;
  • ƒProvided training programmes on financial literacy to remittance receivers.
Partners: International Fund for Agricultural Development (IFAD) 

Remittances are the main economic resource of Somali communities. As a consequence of the collapse of the formal infrastructure, Somali Diaspora communities use informal money transfer organisations to send remittances. However, remittances are not equally distributed and families in rural areas have lower access to these systems than families in urban areas.

With this project, HIRDA aimed to reach rural remittances recipients, especially women in the Gedo region, to receive their remittances in a safe, inexpensive and efficient manner, which does not require them to travel to urban areas and to follow financial literacy trainings. In doing so, the project strengthened the link between rural shop owners, wholesale merchants and the money transaction offices (MTO). This triangular software system enabled the village shop owner to open credit or debit accounts for the recipients and deliver their remittances either in kind or in small amounts of cash to ease the safe keeping and management of the money. 

HIRDA established a more transparent money transaction system with the potential of increased access for all Somali communities in Somalia as well as abroad click here. HIRDA is looking for ways to enhance this system and applying this system as a social investment in the future. 

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