In response to the needs of the people in East Africa, Minneapolis-based businessman Garad Nor has established money transfer companies to help facilitate remittance payments between the United States and Africa. Garad Nor is the CEO and president of the successful remittance firm Banana Pay.
Evidence suggests that digital payments and expanded mobile banking options increase opportunities for entrepreneurs due to facilitated financial transactions, increased access to business loans, and cheaper payroll processes. Entrepreneurship is vital to the economy of developing countries such as Somalia, where years of civil war and government instability have resulted in weak financial institutions and no significant bank presence.
In addition, formal work opportunities can be difficult to find. Youth unemployment hovers just under 70 percent in Somalia.
However, because of mobile banking services, small business owners can safely and conveniently collect payments from their customers, pay their expenses, and raise capital. Today, the fintech (financial technology) sector itself is ripe with opportunity for Somali entrepreneurs.
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