Somali tycoon Abdirashid Duale has disclosed that the recent cost of living crisis that has significantly altered the spending pattern of people across the world has left Bristol’s Somali community struggling to send money back to families overseas.
The recent cost of living crunch, which has had a significant impact on diaspora remittances from Somalis living abroad, comes as British consumers cut back sharply on spending last month in almost all areas except holidays, as the rise in food and energy prices hit budgets hard.
As a result of the recent strain on real income caused by the sustained increase in price levels that drove UK inflation to 10.1 percent in September, Somalis in the UK have adopted a more frugal approach, which has significantly impacted diaspora remittances.
Abdirashid Duale, CEO of Dahabshiil, an international money transfer corporation, commented on the impact of the cost of living crisis on diaspora remittances, stating: “Dahabshiil, as a licensed remittance company, have seen both senders and receivers are affected by the cost of living crisis.”
In addition to the real income decline, he continued, the recent strength of the U.S. dollar has made sending money abroad more expensive after the pound hit record lows against the dollar.
Dahabshiil, an indigenous African company, was founded in 1970. It was established at the time as a new remittance venture to enable migrants to send money to family and friends at home in East Africa.
Under the leadership of Duale, Dahabshiil has grown into the largest money transfer business in Africa, operating in 126 countries worldwide, 40 of which are in Africa.
As its clients depend on the company to deliver payment services to their employees, contractors, government institutions, and partner NGOs, Dahabshiil offers money transfer and banking services to companies and international organizations like the UN, World Bank, Oxfam, and Save the Children.
The company was honored with two Global Good Governance awards earlier this year for its financial services to the diaspora by Cambridge IFA, a financial consultancy based in London.