Dahabshiil: The Backbone of Africa’s Remittance and Financial Growth

Dahabshiil’s story began in 1970, founded by Somali entrepreneur Mohamed Said Duale in Burao, a small town in Somaliland. Initially, it was a general trading business. However, as more Somalis migrated to Gulf States during the 1970s, there was an increasing demand for sending money back home. Dahabshiil shifted its focus to facilitate remittances, evolving into a remittance brokering business that catered to the growing Somali diaspora. Despite the Somali Civil War in the late 1980s, which temporarily disrupted its operations, Dahabshiil was resilient. Duale, along with his family, leveraged a robust network in the Gulf and other regions to rebuild the business from scratch.

By 1989, Dahabshiil had opened its first office in London, managed by Duale’s son, Abdirashid Duale, who has since expanded the company to a global scale. With offices across Africa, Europe, the Middle East, and the Americas, Dahabshiil is now a world-class financial services provider, especially for the Somali diaspora, offering reliable, fast, and low-cost money transfer services.

Dahabshiil operates in more than 144 countries, with over 24,000 agent locations worldwide. The company employs over 2,000 people globally and has developed an extensive network of branches, including in major financial hubs like Dubai and London. In Somalia, Dahabshiil is the largest financial service provider, handling around two-thirds of all remittances flowing into the country. What sets Dahabshiil apart from other financial service providers is its commitment to affordability and accessibility. Unlike Western Union or MoneyGram, Dahabshiil charges significantly lower fees, often ranging between 3% and 5%, depending on the amount being transferred. This affordability has made it the go-to service for migrant workers and those who send money to support families back in Somalia and other parts of Africa.

Dahabshiil isn’t just focused on profit. The company has a strong commitment to social responsibility, investing 5% of its annual profits into community projects. These initiatives are aimed at improving education, healthcare, sanitation, and agriculture in Somalia and other regions where Dahabshiil operates. By doing so, the company has played a key role in rebuilding infrastructure and fostering economic growth in war-torn and underdeveloped areas. Dahabshiil sponsors various cultural and social events, such as the Somali Week Festival and Somali Youth Sports Association in the UK. These initiatives help to unite Somali communities abroad while also celebrating their rich cultural heritage.

Dahabshiil’s success has also allowed it to diversify its offerings. In 2008, the company acquired a majority stake in Somtel, a Somali telecommunications firm, to provide mobile and internet services in Somalia. The acquisition also marked Dahabshiil’s entry into the mobile banking sector, enabling Somali users to conduct financial transactions via their mobile phones, a service that has rapidly grown in popularity due to the limited formal banking infrastructure in Somalia. In 2009, Dahabshiil took a bold step into the banking industry by launching Dahabshiil Bank International, an Islamic bank headquartered in Djibouti. The bank offers Sharia-compliant financial services to businesses and private clients, reinforcing Dahabshiil’s commitment to serving the financial needs of Muslim communities worldwide.

Dahabshiil’s journey hasn’t been without challenges. In 2013, Barclays Bank threatened to close Dahabshiil’s UK account due to regulatory concerns, leading to a high-profile legal battle. However, with widespread support from legislators, Somali communities, and high-profile figures like Olympic champion Mo Farah, Dahabshiil successfully won an injunction to keep its services running. This event highlighted the importance of Dahabshiil’s services, not just for Somali communities but also for humanitarian organizations operating in the region.