Hormuud Telecom

Hormuud was established in 2002 in Mogadishu, Somalia by a small group of shareholders, and originally consisted of 16 telecommunication sites. In July 2014, Hormuud Telecom, along with NationLink and Somtel, signed an interconnection agreement. The cooperative deal established the Somali Telecommunication Company (STC), which allowed their mobile clients to communicate across all three networks. Later that year, Hormuud trialed the first 4G services in Somalia. They began expanding their 4G network capacity in 2015 in partnership with the Somalian Ministry of Telecommunications. In 2020, the company became the first private corporation in Somalia to be ISO certified. This international standard accredited Hormuud's products and services as satisfying the needs of their customers through an effective quality management system and meeting all the relevant regulatory requirements. In February 2021, the Central Bank of Somalia issued the first mobile money licence to Hormuud Telecom, assuring that its mobile money platform EVC Plus is now formally regulated and licensed by the Central Bank. The move formalised digital payments as a payment method within the country and will enable further integration of the Somali financial system with the international financial system. Hormuud also launched Somalia's first indigenous mobile money app early in the same year. WAAFI combines mobile money, communication, entertainment, and payments, wherein consumers can access bank accounts, perform online transactions, send international remittances, and make international/domestic phone calls all through the app. WAAFI's integrated mobile money experience is an upgrade from the existing USSD technology that many Somalis use. In 2023, Hormuud Telecom hosted its Somali Success Stories conference, bringing together government leaders, industry representatives and over fifty businesses to celebrate the businesses and innovations driving Somalia's economic growth, and problem solve for the future. In 2024, Hormuud Telecom's CEO Ahmed Yusuf was named CXO of the year at the Africa Tech Festival, and CEO of the year at the World Communications Awards. In 2024, Hormuud Telecom brought 5G to Somalia, rolling out the service at no extra cost to customers in over 30 of Somalia's towns and cities. As a result of the first phase of the rollout 5G coverage in these areas stands at 81%. In partnership with Salaam Somali Bank, Mastercard, Telesom, Golis and Paymentology, Hormuud Telecom introduced contactless payments in Somalia. Together, they launched a co-branded, tokenised, tap-to-pay digital companion card along with a physical card for Waafi mobile app users. The digital card is said to be a first for the Horn of Africa. The same year, Hormuud Telecom signed an MoU with the Federal Government of Somalia's Ministry of Environment and Climate Change and Salaam Somali Bank to reinvest climate adaptation and mitigation funding into green initiatives within the country. ==Operations==

Hormuud Telecom has more than 3.6 million subscribers in Somalia, roughly three million of whom use its mobile money platform EVC Plus. More than 189,000 Somali investors have shares in Hormuud Telecom. including telecommunication engineering, customer service, sales and marketing, and finance specialists. Around 45% of the firm's personnel are engineers. It is the largest private employer in the country, with over 800 customer service centres in both urban and rural Somalia. As of 2021, it was estimated that over 11.25 million Somalis, or 70% of Somalia's population, have access to 4G internet. Hormuud Telecom has pledged to ensure full 4G coverage across Somalia by 2023. == Technology and products ==

Mobile services In 2002, Hormuud launched GSM Mobile Services, a prepaid service that offers options for contract or pay-as-you-go mobile services. Customers can top-up their accounts using Hormuud recharge vouchers and scratch cards. EVC Plus First introduced in 2012, EVC Plus is a unique option to transfer and receive mobile money; it operates like SMS. Over 67% of Somalis, especially the most vulnerable communities, use mobile money technology as a sole payment system. EVC Plus differs from many other mobile money platforms in Africa by being totally free at the point of use. The mobile money platform has several key functionalities, such as person-to-person money transfer, person-to-merchant/business money transfer, airtime/data top-up, and account management. Mobile money is widely used in Somalia, with data from the World Bank showing that mobile money transfer is crucial in Somali's economic and infrastructure growth, with 155 million transactions worth US$2.7 billion reported every month. The majority of these transactions are made through EVC Plus. Research shows that mobile money plays a crucial role in minimising currency loss and fake money. Non-governmental organisations (NGOs) and welfare organisations sending cash to Somalis in remote areas are exempted from the EVC wallet limit of $300. In the past, Hormuud Telecom provided commission-free bulk cash transfers to NGOs responding to crises (like floods in 2019). In 2019, Hormuud Telecom launched its humanitarian portal to better facilitate cash aid to remote and difficult to reach areas. The portal uses Hormuud's mobile money network to provide a traceable, timely and efficient way to distribute cash assistance – reducing risks and operating costs for NGOs. The portal can deliver aid to both feature phones and smartphones, and it is used by over 120 humanitarian partners. In 2023, Hormuud Telecom partnered with the GSMA's GSMA Mobile for Humanitarian Innovation Programme (M4H) to increase the uptake of mobile-money enabled aid disbursement by INGOs. The goal of the partnership is to enable the exchange of best practice, and spur innovation. In Somalia, 70.2% of mobile money users pay education fees on the platform; 56.4% disburse donations and charity; 28.3% shop online; 18.0% receive cash transfers from NGOs; and 16.7% pay government taxes. Nasiye Nasiye was first launched in 2013, and became more prominent during the COVID-19 pandemic. This service allows a user to set up music or reading options as their dial tone. During the pandemic, Hormuud replaced some of the Nasiye dial tones with public health announcements to educate vulnerable populations and communities. Hormuud removed service subscription fees to help support the country from 2019 onwards. WAAFI is a fully integrated mobile money platform, upgrading existing USSD technology that many Somalis use. Currently, USSD-enabled mobile money technology has a penetration rate as high as 80% in urban areas and 55% in rural areas. WAAFI allows users to access their bank account through deposits and withdrawals via their EVC Plus wallet. Through this, businesses can generate QR codes that allow customers to directly credit the businesses' bank accounts. In 2024, Hormuud's collaborated with WAAFI, Paymentology, Mastercard and Salaam Somali Bank to roll out “Tap and Go” contactless payments in Somalia for the first time. The WAAFI mobile app now allow users to digitally open an account, create a digital Mastercard card, attach the card to a wallet or account, tokenise the card on a digital device, so contactless payments can be conducted with ease. ==Sponsorship==

In April 2019, the Hormuud Scholarship was launched, giving well-qualified Somali students full ride scholarships to Somali universities. Since 2015, Hormuud has also sponsored a number of regional and national book fairs across the country. From 2013, it has also sponsored the annual Somalia Super Cup, the domestic football league final. == Hormuud Salam Foundation ==

Hormuud Salam Foundation (HSF) is a non-profit foundation that is fully funded by Hormuud Telecom and Salaam Somali Bank, created for the sole purpose of providing charitable contributions to improving the everyday lives of Somalis. In 2020, during the coronavirus pandemic, HSF and partners donated over US$5 million towards Somalia's coronavirus healthcare and pandemic relief efforts. In 2021, HSF supported the effort to help raise $4 million for the Somalia Action Network COVID-19 relief fund, in partnership with the Somali Chamber of Commerce. HSF funds a range of philanthropic relief projects, directly responding to humanitarian crisis across Somalia. The same year, Hormuud Salaam Foundation sponsored a year of fuel costs for the Banadir Maternity and Children's Hospital in Mogadishu, ensuring the uninterrupted running of services. The foundation also donated ten incubators. Hormuud Salaam Foundation also sponsored heart disease screening for 119 children in Mogadishu, led by Italian doctors Dr Marianeschi Stefano and Dr Scansani Silvia. As a result of the medial evaluations, 15 children have since been sent to Italy for life-saving surgeries, funded by HSF. ==See also==