Telesom, a leading telecommunication and Online remittance company, has suspended international remittance services to Somaliland this week, except for Hormuud Group’s Taaj service-linked subsidiary known as PaySii.
This action has halted millions of dollars of transfers to Somaliland. The services halted suddenly include WorldRemit, a long-standing partner of Telesom, and others like Juba Express.
The decision has also affected associated banking partners, like Premier Bank. The discontinued services are used to channel over $300 million annually to Somaliland.
Previously, Telesom severed ties with digital remittance service Transfer Galaxy when Transfer Galaxy refused to accept Telesom’s demand that they raise the commission they charge customers.
The suspension of WorldRemit’s transfers to Zaad is reportedly due to WorldRemit reducing its service fee for U.S. remittances to 3% compared to PaySii’s 5%, and its collaboration with Juba Express, extending its reach to Somalia.
Below is a warning letter dated 2017 written to Transfer Galaxy by Telesom’s Zaad Service subsidiary.
