Hormuud Telecom, a leading telecommunications company in Somalia, has introduced its 5G services nationwide, providing individuals and businesses with advanced connectivity solutions that will have a significant positive impact on education, healthcare and local productivity.

In an interview with The Africa Report, Ahmed Yusuf, CEO of Hormuud Telecom, says that the 5G network is already in operation in Mogadishu and 30 other cities in Somalia, covering 81% of the population – or seven million people – living in these areas.

“We offer some of the cheapest data in Africa, and our 5G services are provided at no extra cost to 4G tariff subscribers, ensuring that the transition to higher speed connectivity is seamless,” says Yusuf.

“We want to empower new industries that rely on high-speed internet, bolster e-commerce and create job opportunities, which will be crucial for increasing the penetration of technology in the long term.”

The 5G rollout was funded by Hormuud Telecom’s revenue from existing business operations, underlining their commitment to the nation’s digital economy.

With more independent cables in place, the more reliable the internet connection

Helping hand

“Based on our research, internet penetration in Somalia is higher than the reported 14%, particularly in Somalia’s cities, but it has been held back because of the cost of smartphone handsets, which outprices the average income,” said Yusuf.

The company aims to support the adoption of affordable smartphones and boost digital literacy to expand internet use across Somalia and help bridge the digital divide.

Following a swathe of internet outages across Africa in March due to the disruption of subsea internet cables, Yusuf says the need for robust internet infrastructure is more important than before.

“With more independent cables in place, the more reliable the internet connection. For example, in Somalia we saw no internet disruption in March,” he said.

Against the backdrop of Somalia’s recent debt forgiveness and entry into the East African Community (EAC) market, the chairman of Somalia’s chamber of commerce, Mohamud Abdikarim Gabeyre, says that the introduction of 5G will greatly enhance business operations and enable Somalia to actively participate in the EAC market, which has a population of over 400 million people.

Better connected

“Thanks to Hormuud’s efforts, Somalia is better connected with the rest of the East African Community,” he said.

Hormuud is a significant player in the national economy, employing around 35,000 staff.

According to Ahmed Khadar, a business analyst and academic, the introduction of the 5G service in Somalia brings numerous advantages to businesses in the country, highlighting three key elements.

• It enables businesses to enhance their operations by increasing efficiency and automating transactions.
• It will assist businesses in reducing costs associated with traditional transaction methods.
• The improved internet connectivity will generate new business opportunities, particularly in the field of e-commerce in Somalia.

“Overall, it benefits businesses, individuals and the government as it leads to accelerated digitalisation, resulting in economic growth and development,” he said.