Dahabshiil fears reduced remittances over Brexit vote

One of the largest Africa-based money transfer businesses, Dahabshiil, said the UK’s Brexit vote will hit remittances and affect investments in the region.

Dahabshiil, which is very popular among Somalis and is the biggest financial services firm in Somalia said the stability of  sterling and the euro across the UK and in Europe have been good for remittances, trade and investment in Africa. This, according to the firm’s CEO Abdirashid Duale, has in turn, has improved the lives of many poor people in the continent.

dahashiil

“Remittances and other business transactions from the UK and generally from Europe have changed the lives of many in Africa. Brexit is likely to increase uncertainty and market volatility, which might translate to slower economic activity and affect trade relations,” he said.

Dahabshiil has more than 5,000 employees across 150 countries globally. It is the largest provider of remittance services to hundreds of thousands of Somalis living in the UK.

“We hope things will be stable especially for the good of global businesses,” said Duale.

Following the decision to leave the European Union, Britain’s sterling pound weakened immensely by over 10 per cent to hit a 30-year low. More than two million Britons and UK residents have signed a petition calling for a second vote, forcing lawmakers to at least consider a debate on the issue.

Parliament has to consider a debate on any petition posted on its website that attracts more than 100,000 signatures.

Source: The Star

This post is also available in: Somali

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