Hargeisa (SLpost)- Hundreds of young people in Somaliland are facing unemployment and worsening living conditions after a government decision to halt unlicensed currency exchange transactions conducted through mobile money services such as Zaad and e-Dahab.
The measure, introduced in July, has disrupted the livelihoods of young people who relied on small-scale currency exchange as their main source of income, according to a report by Radio Ergo.
The Central Bank of Somaliland said the restrictions targeted small currency traders who were not formally registered or paying taxes. Authorities also accused some of the traders of exchanging currencies at rates different from those set by the central bank, arguing that such practices violated financial regulations.
While licensed currency exchange businesses welcomed the move, Radio Ergo reported that the decision has had a significant impact on low-income young people and families who depended on informal exchange activities to meet basic household needs.
For 19-year-old Jimcale Hassan Suleiman, the loss of his income quickly affected his education. He was forced to stop attending the fourth year of secondary school in Hargeisa after becoming unable to pay the $25 monthly school fee.
Jimcale told Radio Ergo that he was also supporting four younger siblings and his parents. Before losing his livelihood, he said he could earn between $20 and $30 a day from currency exchange, using the money to cover rent, electricity, water and other essential expenses.
He said the decision came without enough time for affected traders to prepare for the loss of their income.
“It came as a sudden decision for us, and we were not given any time,” Jimcale said, according to Radio Ergo. “Even the shops that used to trust us no longer give us anything because they know currency exchange has been stopped.”
Jimcale said he had entered the business in 2023 after the older brother who had been supporting the family got married and began struggling to provide for his own household. With limited employment opportunities and no other professional skills, Jimcale said he currently sees few options for supporting his family.
Another young trader, Awo Adan Mohamed, said she was unable to afford the financial requirements for obtaining an official currency exchange license. According to the report, prospective exchange operators are required to pay $700 for registration and licensing, in addition to an annual tax of $130.
Awo said she entered the informal exchange business because it required relatively little capital. She started with just $50 provided by a relative and eventually earned between $300 and $400 a month.
That income supported her mother and three siblings. Since losing her work, she said the family has struggled to afford food and has been forced to rely on credit.
“Before, we could afford three meals a day. Now even one meal has become difficult,” Awo told Radio Ergo.
She said two of her siblings have also stopped attending school because she could no longer afford the $20 monthly fees.
Awo said she has searched for alternative work, including jobs in beauty and makeup services, but has yet to find employment.
For Samira Mohamed Hassan, the consequences have similarly extended beyond her own livelihood. She had worked in currency exchange for two years and used the income to support a household of eight people.
Samira told Radio Ergo that she previously earned at least $15 to $20 a day. Much of that income went toward the education of six younger siblings, including $45 for school fees and $40 for religious education.
Since losing her income, the family has struggled to maintain regular meals. They are currently relying on approximately $90 worth of food purchased on credit, but Samira said it would be difficult to obtain additional credit before the existing debt is repaid.
The experiences of Jimcale, Awo and Samira highlight the broader economic consequences of the crackdown on informal currency exchange, particularly for young people without savings, formal employment or access to sufficient capital to obtain licenses.
The Central Bank’s restrictions are intended to bring currency exchange activities under formal regulation and ensure compliance with taxation and exchange-rate requirements. However, affected traders argue that the cost of formal registration remains beyond the reach of many low-income young people who entered the sector because they had few other employment opportunities.
The young people interviewed by Radio Ergo have urged the Somaliland government to reconsider the impact of the policy and explore a solution that would allow them to continue working legally while meeting regulatory requirements.
For hundreds of families who depended on these small-scale traders, the issue is no longer simply about currency exchange. It has become a question of access to food, education and basic household necessities.
Reporting by Somalilandpost News
