Effect of COVID-19 for SendingRemittance in Somalia

Abstract

Somali diaspora maintains a connection to their home country by sending remittances or traveling back home regularly. However, after the COVID-19 outbreak, the Somali diaspora had reduced or stopped sending remittances in which had affected the household income and the economy of Somalia. The objective of this study is to examine the effect of COVID-19 on sending remittances in Somalia. The survey was conducted from April 5 to 20 May 2021 by using semi-structured interviews. The analyzed data were received from the top five remittances operate in Somalia. Target respondents were executives and operation managers. Interviews were conducted on remittances’ place of works in Mogadishu. Some remittance interviews were conducted by phone. Findings show that Somalia is experiencing two consecutive years of remittances decline amid the Coronavirus lockdown. The decline has an extensive impact on
business, the cash flow, the livelihood of household’s income, and the Somali Economy. The future recovery depends on how Coronavirus manages the world