Oxfam has expressed alarm at the shocking drop in remittances to Somalia and called for joint action to resolve this issue.
The organization, which is an international confederation comprising 20 Non-Governmental Organizations (NGOs), said this during a joint briefing with more than 100 NGOs.
Oxfam said that around 50 percent of all households in the Horn of Africa nation rely on remittances for their basic needs.
Without the remittances, Somalis would be unable to pay for water, food, education, and healthcare.
Additionally, the organization has confirmed the recent estimates of a reported 20 percent reduction in global remittances made by the World Bank.
Since COVID-19 broke out in Somalia, the country’s money transfer operators (MTOs) have reported a significant drop in remittances.
COVID-19 has created massive unemployment and underemployment in the United States and Europe, which are responsible for the largest portion of remittances to Somalia.
Oxfam has warned that as the remittances reduce even further, the economic crunch could worsen the situation in Somali households around the country.