MOGADISHU: Hormuud Telecom, Somalia’s largest telecommunications provider, announced on Tuesday a strategic partnership with Get-Phone to launch the country’s first structured smartphone financing program. The initiative aims to provide millions of low-income Somalis with access to internet-ready devices for the first time, addressing the affordability gap that has remained the main obstacle to digital inclusion, even as 4G coverage now reaches over 70 percent of the population.
Under the new model, customers can acquire a smartphone with an initial deposit of $19 and daily payments starting at $0.60. This daily amount covers the device installment along with a package of 1GB of data and 40 minutes of voice calls. The average Somali customer currently spends $0.50 daily on data and calls, meaning the program allows adding a smartphone for just an additional 10 cents per day.
“For two decades, we have developed a network we believe can transform Somalia,” stated Ahmed Yusuf, chairman of Hormuud Telecom. “The obstacle isn’t the mast in the distance but the handset in the pocket. Today, we are eliminating that barrier.” Deputy Prime Minister Salah Ahmed Jama praised the program as a pathway to financial inclusion and an essential part of the country’s Vision 2060 national goals. “A smartphone today is much more than just a device; it opens doors to commerce, education, and opportunity,” Jama noted.
The program utilizes Hormuud’s EVC Plus mobile money platform for repayment processing. Eligibility is determined through a proprietary credit-scoring system based on SIM usage patterns, enabling participation by those without formal bank accounts. The program also includes a “family guarantor” mechanism, which demonstrated success during a pilot in Mogadishu from February to March, reporting a default rate below 4 percent.
The initial rollout phase aims to distribute 10,000 devices by June 2026, with a target of 100,000 devices by year-end as the program expands to Puntland and Somaliland. Get-Phone CEO Omar Abdi highlighted that the financing adheres to Sharia principles and is interest-free, with repayment periods ranging from six to twelve months. “This program is founded on the principle that providing people with the right tools at an appropriate price enables them to achieve extraordinary things,” Abdi stated.
The initiative arrives as World Bank and GSMA data show that a 10 percent increase in broadband penetration can raise GDP by up to 1.4 percent in developing economies. With nearly half of Hormuud’s 4 million subscribers still using 2G feature phones, this partnership is positioned to unlock substantial private investment in Somalia’s expanding digital infrastructure.
Hormuud’s Broader Impact on Digital Inclusion
The announcement comes amid a series of milestones for the telecom giant, which has received international recognition for its work in connecting underserved populations. Hormuud was awarded the “Connecting the Unconnected Award” at the Glotel Awards in London in 2024, competing against global industry leaders from the UK, USA, India, and South Korea. The company has also been named Telecommunications Company of the Year at the AfriSAFE Africa Safety Congress 2025, where organizers praised the company for its workplace safety protocols, employee training programs, and community initiatives.
Hormuud has established itself as a key partner in national and regional digital development. The company signed a landmark agreement with the German Agency for International Cooperation (GIZ) in early April, aimed at developing an inclusive digital economy across the East African Community region. The partnership focuses on expanding cross-border payment systems, digital literacy, and artificial intelligence training programs tailored to boost youth employment. Ministers present at the signing hailed the agreement as a historic milestone for Somalia’s private sector, reflecting institutional maturity and the ability to execute complex international agreements.
Government Support for Digital Transformation
The Federal Government has consistently prioritized digital transformation as a cornerstone of its national development strategy. Minister of Communications and Technology Mohamed Adam Moalim Ali convened a high-level strategic meeting with telecom executives in October 2025 to accelerate Somalia’s digital transformation, emphasizing that the country’s digital future depends on strong collaboration between the government and private sector. “Digital transformation is not just about technology — it’s about inclusion, opportunity, and empowerment for every Somali,” the minister said on that occasion.
The government has also leveraged mobile money platforms for critical social protection programs. The federal government successfully delivered $3.88 million in drought insurance payouts to pastoralist communities through mobile money platforms operated by local telecommunications companies. Thousands of pastoralists opened digital accounts for the first time to receive the payments, with a majority of new accounts being held by women — demonstrating the role of mobile money in advancing financial inclusion.
The smartphone financing program represents a significant step toward closing the digital divide. With nearly half of Hormuud’s subscriber base still using basic phones incapable of internet access, the initiative aims to convert feature phone users into smartphone owners, enabling them to participate in the digital economy. Officials have indicated that the program’s success in Mogadishu will determine expansion timelines for other regions, with Puntland and Somaliland targeted for later phases. The Federal Government has expressed full support for the initiative, aligning it with broader efforts to modernize telecommunications infrastructure and expand access to digital services across the country.
