Audio By Carbonatix
Somali Islamist group al-Shabab has ordered mobile phone companies to stop their popular money transfer services, saying they are "unIslamic".
Mobile phone banking was introduced in the northern Somaliland region in 2009 and has now spread across the country.
Al-Shabab and its allies control much of southern Somalia and one mobile phone company official said he had "no option but to obey" the order.
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.
Harder to trace?
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.
BBC East Africa correspondent Will Ross says the Islamist insurgent group, which has been labelled a terrorist organisation by the United States and several other countries, may also fear that its members and backers can be traced more easily when mobiles are used for money transfers.
The hundreds of thousands of Somalis living abroad use hawala and mobile phone banking to send money back to relatives still in the country.
This is one of the country's main sources of income, estimated to be worth some $1bn (ÂŁ660m) a year.
Somali journalist Mohamed Sheikh Nor told the BBC that people like mobile phone money transfers as it means they do not have to carry around large amounts of cash.
Instead, mobile phone credits can be used to pay for goods and services.
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.
Somalia has not had a stable government since 1991.
The UN-backed authority only controls parts of Mogadishu and a few other areas, although it has been gaining ground from al-Shabab in recent weeks.
It has strongly condemned the ban and urged businesses to help it against al-Shabab.
Source: BBC
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Tony Elumelu appointed chairman of Seplat Energy
11 minutes -
Education Minister raises alarm over indiscipline in SHSs, announces national reform conference
12 minutes -
Lom Ahlijah advocates tech-based monitoring in schools after assault case
17 minutes -
UTAG threatens nationwide strike over delay in book and research allowance rate
25 minutes -
Boundary Commission urges border residents to protect boundary pillars and support national security
27 minutes -
Ghana to grow at 5.0% GDP in 2026, but faces huge investment financing gap – AfDB
29 minutes -
Deputy AG, 14 CSOs appear at Supreme Court for hearing on challenge to OSP’s prosecutorial powers
34 minutes -
Minority MPs meet Ghana High Commissioner to Canada to discuss diaspora welfare and bilateral relations
43 minutes -
GNAT threatens WASSCE boycott over detained Nyinahin SHS teacher
50 minutes -
Free SHS: Education Minister hails end of school food shortages
54 minutes -
NLA Director-General calls for a concerted effort in fight against illegal gambling
56 minutes -
74% of returned Ghanaians had overstayed visas – South Africa’s Int’l Relations Minister
59 minutes -
Ghana’s National Vaccine Institute joins WHO-backed Global Clinical Trials Forum
1 hour -
World Bank set to approve US$300m for expansion of Ghana’s school infrastructure
1 hour -
South Africa says investigations ongoing, no decision yet on compensation for returned Ghanaians
1 hour