Trip to Somaliland

I traveled to Hargeisa, the “capital” of Somaliland and the second-largest city of Somalia, on a 2-day business trip. Although I have travelled to South Central Somalia twice, this was my first time to visit Somaliland.

Egal International Airport

Somaliland, which is located in the northern part of Somalia, is badly seeking for international recognition as a sovereign state since it proclaimed its independence in May 1991. Somalilanders are quite proud of their origin and identity, and they are likely to correct you if you call them Somalis. The city of Hargeisa is decorated with Somaliland’s flag colored in red, green and white with a black star in the center. It also has its own anthem, currency, and a government structure.

As the aircraft reached the Egal International Airport in Hargeisa, vast semi-desert land stretched below. From the window of the plane, I saw herds of livestock, such as camels and goats, flocking sporadically. In fact, the livestock export to Arab countries contributes to approximately 65% of Somaliland’s economy. (Note: One camel is sold at $800 in Somaliland, but the price more than triples once exported to the Arab region.)

Qaat (ألقات)

Somaliland Shiling

Somaliland seems to be enjoying a fairly close relation with two neighbors: Djibouti and Ethiopia. With Djibouti, Somaliland has a history of more than 1,000 years of trading Qaat (ألقات), a stimulant herb that is largely consumed in the Muslim world. The land-locked Ethiopia exports and imports from Somaliland’s gate way: Berbera Port, a natural deep harbor on the Gulf of Aden. The presence of Ethiopians is felt in Hargeisa, and Ethiopian Birr can be used at local shops interchangeably with Somaliland Shilling and US dollars.



The presence of diaspora is significant as well. While driving around Hargeisa, I saw quite a few nice mansions built with colorful stones and glass. Most of the time, they are owned by diasporas. Remittances from diaspora are an important source of income in Somaliland, where an unemployment rate is over 75%. According to the World Bank, the scale of remittance to Somaliland is estimated at $1 billion.

Somaliland is quite safe and peaceful compared to other parts of Somalia. In Hargeisa, foreigners can walk outside alone, which is unbelievable in Mogadishu. There are quite a few currency changers on streets in Hargeisa, which is a testimony that the overall security situation is good (You will not see many currency changers in unsafe areas, as they would be afraid of carrying a large amount of cash). Once you travel outside Hargeisa, however, you need to get a police escort. The number of reported SGBV (Sexual and Gender-Based Violence) cases is allegedly increasing these days. There is a no-go zone in the Eastern part of Somaliland, which is also claimed by Puntland, another territory that claims its autonomy. But generally speaking, the security situation in Somaliland is fairly good compared to other parts of Somalia.

Somaliland has a huge potential for business, trade, and tourism. If the talent of the unemployed youth unleashed, the beautiful seashore developed and advertised well, and the port of Berbera fully utilized, Somaliland’s economy would grow.

Kenyan PKO Training Centre Support: Japan-funded Human Rights Course for South Sudan

As a representative of the Government of Japan, I attended the closing ceremony of the 10-day human rights course for South Sudan at the International Peace Support Training Centre (IPSTC), which is one of the most prominent PKO training centers in the world.  For this course, we had Lt. Col Urakami of the Japan Ground Self Defense Force as a lecturer.

Remarks on the occasion of the closing ceremony 
for the South Sudan Human Rights Course (30th Aug, 2013)

[Names omitted]

Distinguished staff and facilitators,

Distinguished participants,

Ladies and Gentlemen,

Assalaamu Alaykum. (Hello.)

It is indeed my honour to attend the closing ceremony of the Human Rights Course for the Republic of South Sudan.  I would like to convey our cordial congratulations to the 21 participants from South Sudan for your achievement through this course.  Mabrook! (Congratulations!) I would also like to express our gratitude to the Government of Kenya, IPSTC (International Peace Support Training Centre), JCCP (Japan Center for Conflict Prevention) and UNDP Kenya for their dedication, commitment and support, which have led this course to a success. And also to the lead facilitator, Lt. Col Wacha, who is obviously quite popular among the participants.

This Human Rights Course for South Sudan is the 7th course financed under Japan’s funding this year at the IPSTC.  As part of Japan’s support towards peace and security in your country, this course is tailor-made for South Sudan and specifically addresses its local circumstances.  I am proud to have offered this unique course to the professionals like you, who would become leaders in the field of human rights in your country.

Since South Sudan’s independence on July 9th, 2011, the Government of Japan has strongly supported the consolidation of peace and stability in your country.  Actually, I was in Sudan at the time of your independence and experienced the enthusiasm of the people of your country.  But although South Sudanese and the international community celebrated the second anniversary of the independence with continued enthusiasm last month, security and development challenges that need to be addressed urgently remain ahead of your new country.  In addition to our continuous support through JICA (Japan International Cooperation Agency) and international organizations, Japanese Ground Self Defence Force’s engineering unit of about 330 soldiers are currently working at UNMISS. The engineering unit has been actively engaged in peace support activities as well as infrastructure development.  I believe Japan can turn this PKO mission into a pivotal opportunity to further advance its commitment to peace and stability in your country, and to make headway in synergizing 3Ds – Diplomacy, Development, and Defense.

Lt. Col. Urakami, who shared Japan’s experience at UNMISS with you just this morning, was one of those who were deployed to Juba in January 2012 as the first batch of JSDF (Japan Self Defense Force).  He worked at Japan’s contingency office and spent almost a year in Juba.  As we all agree, the first batch has to go through the toughest part.  And I believe you enjoyed Lt. Col. Urakami’s lively experience this morning.

Through the 10-day course, which ends today, I believe that you have familiarized yourselves with various issues regarding human rights and have acquired analytical knowledge and pragmatic skills to contribute to the improvement of the human rights conditions in South Sudan.  And let me ask you one favor.  As the representative of the participants has just promised, please do share what you have learned here with your colleagues back home.  From today, you are no longer trainees but trainers of your country.  

In closing my remarks, I wish all the best for each and every participant for your future contribution to your country and your work in a respective position.

Shukran jazeelan. (Thank you very much.)

M-PESA, Success Story of Kenya’ Mobile Money Transfer Service

People do not need to go to the bank or to carry cash to pay their utility bills, taxi rides, or grocery shopping as long as they have mobile phones in their pockets.  Believe it or not, I am not talking about the US or the UK or Japan; I am talking about Kenya.  Kenyans pay these daily fees by just sending a text message thanks to their world-leading mobile money transfer service, M-PESA (“M” for mobile and “PESA” for money in Kiswahili). 

Launched in March 2007 by Safaricom, Kenya’s largest mobile phone operator, M-PESA has become an influential cutting-edge technology.  It currently has over 19 million subscribers in the country.  Roughly speaking, this means that over 70% of the working-age (15-64 years old) Kenyans subscribe to the mobile banking service.   The service is surprisingly accessible with over 40,000 M-PESA agent outlets (usually street shops) across Kenya.

Why has M-PESA become so popular?  First, it is a quick way to transfer money.  In rural areas, banks are hours away.  Also, it sometimes takes weeks to authorize financial transfer at the bank, and people are denied access to their bank accounts if they cannot fully verify their identities (identity verification is not that easy).  Second, it is cheap.  Traditional transfer methods are quite expensive in Kenya, and for those who just scrape by, the transfer cost is a painful expenditure.  As for M-PESA, registration and deposit are free, and transfer and withdrawal fees are much cheaper than other means.  Third, it is relatively safe.  As a financial transfer method, it is safer than sending someone else with cash (the money carrier may get attacked on his way, or he may run away with the cash).   It is also a safer way to save financial assets than hoarding cash or transforming them into livestock (cash can be stolen, and livestock may die).  Fourth, as M-PESA widened its coverage and deepened its penetration into the society, it benefitted from positive network externality.  With more subscribers, the cost of service declined, which made more sense for people to register for the service.  Moreover, as people’s demand for the service increased, corner shops became incentivized to keep enough cash and e-money.  The more the M-PESA network expands, the more people sign up for the service, and the better the service becomes.  And the virtuous cycle continues.

So there are many attractive features of M-PESA as you can see, but I cannot end this blog without mentioning M-PESA’s role in cultivating the field of “e-remittance” in Kenya.  M-PESA matched well with Kenyans’ demand for a better way of remittance to their families and relatives in the event of emergencies or costly life-cycle events such as funerals and weddings.  M-PESA’s e-remittance works like this.  A Kenyan working in Nairobi brings cash to a corner shop with an M-PESA sign, and the agent at the shop adds credits on his M–PESA account.  Then, almost as soon as so he transfers mobile money to his relative’s account, his relative living in a far-away village receives e-money, which can be withdrawn as cash at the closest M-PESA shop.  Safaricom wisely marketed M-PESA to the public with a strongly appealing message: “send money home” (http://www.youtube.com/watch?v=nEZ30K5dBWU).  This was a killer-phrase for Kenyans, who highly value family ties. 

Image by Safaricom

M-PESA has presented the world a successful African business model utilizing technology.  It has further potential of improving people’s lives by offering low-cost loans and encouraging savings (savings in M-PESA accounts earn interest).  In 2010, Safaricom initiated its international mobile money transfer service, and M-PESA has now expanded beyond Kenya to 45 countries and territories overseas, mainly targeting Kenyan diasporas.  Let’s see how the service develops.