Thousands of Somali families are unable to send or receive money via hawala because of the COVID-19 pandemic.
Over the years, Somalis in the diaspora have relied on hawalas to send money to their loved ones and friends back in Somalia.
However, since early this year when COVID-19 broke out, they have struggled to do that.
Somalis in the East African nation rely on hawala and the remittances from their loved ones in the diaspora for regular income.
Annual foreign remittances from Somalis in Canada, the United States, and the United Kingdom surpass $1.3 billion, which accounts for roughly 25-40% of Somalia’s GDP.
The fact that people no longer go to public places, where most hawala shops are located, has hit the industry hard and denied Somalis a financial lifeline.
With businesses closing, people losing their jobs, and economies struggling, it is clear that hawalas can no longer provide the services that made them reliable in the past.