The Register® — Biting the hand that feeds IT

Feeds

Somali rebels threaten mobile banking group

Mobile money is, apparently, unIslamic

Regcast training : Hyper-V 3.0, VM high availability and disaster recovery

Network operators in Somalia have been given three months to pull the plug on money transfers by mobile phone, or face the consequences.

The threat was made in a statement by al-Shabaab, a group apparently inspired by al-Qaida, and gives the three network operators in the region three months to block transactions over the Zaad Service. This is according to African mobile website Mobile Money Africa.

Al-Shabaab runs a significant proportion of the parts of Somalia that aren't managed by the UN - which would be most of the country. The group reckons that the Zaad Service, which is owned and operated Telesom (one of the local operators), is part of a conspiracy by the west to seize control of the Somalian economy, and that as such it can't be allowed to continue.

Now... our economy might be in a bit of a mess, but compared to Somalia we're rolling in clover and gaining control of the Somali shilling surely isn't high on the western priority list. The GSMA reckons that al-Shabaab doesn't like mobile transactions as they take business away from the hawaladars: an informal, international, network of money transfer agents. Local hawaladars almost certainly come under the control of al-Shabaab, so by enabling person-to-person transactions, Zaad takes power from the group.

The Zaad service, and the hawaladars, are mostly concerned with transferring money into the country from expatriates working abroad who want to support their families at home - and with the country in such a mess that's a significant source of revenue. But the service also provides merchant accounts, allowing the user to pay for goods and and services as if with a debit card. According to al-Shabaab, that has reduced the use of cash and proves the conspiracy.

Amusing as the idea of an American conspiracy to control the local currency is, it doesn't really matter what excuse the group is using - the issue is about who controls of the flow of money, with technology enabling citizens to bypass local warlords. Al-Shabaab has threatened the network operators as it can't reach Zaad itself. The insurgent group only controls the south of the country, and the telecom which runs the mobile banking service is based in the UN-protected north, in Mogadishu. However, in areas where the rule of law has fallen down mobile network operators are awfully exposed. ®

Regcast training : Hyper-V 3.0, VM high availability and disaster recovery

It's all about bribes to al-Shabaab

This has nothing to do with Islam. Local hawaladars have to pay bribes to al-Shabaab, but electronic transactions are beyond al-Shabaab trolls ability to collect bribes.

7
0

Not really

al-Shabaab is more like the religious fanatics that took over the real government of the country, and the "bribes" are more akin to mob tax that government tax.

2
0

Why is Somalia Abandoned?

Clearly, the people in al-Shabaab share the same mentality as the evil terrorists of al-Qaeda and the Taliban. Why, then, are they suffered to live? Why hasn't a massive force of U.S. troops been moved to the country to crush every last member of that group, so that it will be feared no more?

I suppose the answer is the same as the one to the question of why the U.S. didn't send enough troops to Afghanistan and Iraq to have won there already. People would rather stay at home than be dragged off to fight a war.

I would start with diplomatic recognition for Somaililand. Where peace and stability is achieved, that should be supported, rather than put under pressure. And if we aren't willing to go to Somalia and fight ourselves, how about arming the people of Somalia so they are capable of taking matters into their own hands and wiping al-Shabaab from the face of their country?

2
0

More from The Register

 breaking news
UK telcos chuck another £1m at online child abuse watchdog
Web enforcers IWF gain power to seek and destroy illegal content
 breaking news
Pttow! Ofcom kicks hams out of MoD bands
Geet off my land, you, you ... 'secondary user'
 breaking news
Now you can use your phone instead of your wallet at the ATM, too
Blimey, these little paper towels out of the vending machine are really expensive
 breaking news
UK.gov's £530m bumpkin broadband rollout: 'Train crash waiting to happen'
Whitehall whispers of damning watchdog report next month
Google launches broadband balloons, radio astronomy frets
A careless Loon could blind the square kilometre array
 breaking news
MySpace zaps millions of teens' tearful rants, causes wave of angst
'Your crappy redesign SUCKS, I wanna read my blogs' screech users
 breaking news
Microsoft Office 365 on iPhone NOW: No, we're not making this up
Word, Excel, Powerpoint for your pocket-stroker
 breaking news
EU signs off on eCall emergency-phone-in-every-car plan
GPS and a mobe in every car - do you suppose the NSA would fancy that?