Somalia: Hormuud Telecom and GIZ Ink MoU to Bolster Inclusive Digital Economy in East Africa  

MOGADISHU, Somalia, March 31 - Somalia’s largest telecommunications provider, Hormuud Telecom, and the German Agency for International Cooperation (GIZ) signed an agreement on Tuesday to develop an inclusive digital economy in Somalia and the wider East African region.

The Memorandum of Understanding (MoU), signed in Mogadishu, aims to accelerate the East African Community (EAC) digital transformation agenda. The partnership focuses on cross-border payment systems, enhancing digital skills, and fostering Artificial Intelligence (AI) training to boost youth employment.

The Telecom firm's Chief Communications Manager, Abdirashid Ali Ainanshe, highlighted the significance of the partnership, which emerged from discussions between the Hormuud delegation and GIZ officials during the Germany-East Africa Trade and Investment Forum held in Frankfurt and Berlin, Germany, in January 2026. 

"Hormuud Telecom is honored to sign this MoU today with GIZ, in Mogadishu," said Mr. Ainanshe, Hormuud’s Head of Public Relations. "This shows that our country has taken a positive step in business that has a significant impact on Africa and the world. When the country collapsed, the only sector that survived was business."

The MoU also includes provisions for climate financing, environmental solutions, and exploring market entry points for Somali businesses in Europe.

Highlighting the development perspective, Björn Richter, GIZ's Cluster Coordinator for EAC, said the partnership would strengthen support for the East African Community's digital transformation agenda.

“Boosting our support to the EAC digital transformation agenda, we are partnering with Hormuud to support an inclusive digital economy in the region, fostering impacts for East Africans. We look forward to supporting further cooperation with private sector actors from Invest EastAfrica, such as the world’s leading interconnection platform DE-CIX and payment system actors.”

Speaking at the event, Somali government ministers hailed the move as a milestone for the country’s private sector.

Hon Mohamud Abdirahman Sheikh Farah (Beene-Beene) praised the move as a reflection of progress by Somalia's private sector, which is now engaging in impactful international agreements. He added that the move reflects the maturity of Somali firms in entering beneficial international agreements.

"Hormuud Telecom has represented Somalia's private sector at regional and international levels, and on behalf of the government, we are very grateful," the minister said.

Somalia's Minister of Commerce and Industry, Jamal Mohamed Hassan, said the agreement witnessed Hormuud's ongoing contributions to the country and marked an important step in the digital era.

"The MoU is of great importance to Somalia. Today, the world has moved to the digital system. Having such a platform that Hormuud Telecom and GIZ are working on across East Africa will facilitate and ease business," he added.

Mohamed Isak Ibrahim (Fatiir), Director-General for East African Community Affairs at Somalia's Ministry of Foreign Affairs, described the MoU as historic

"Somalia’s private sector is primed for regional integration, with a heavy focus on trade and the digital economy," he stated.
 
The MoU was formally signed by Hormuud Telecom's Managing Director, Mohamed Abdi Mohamed, and Björn Richter on behalf of GIZ. The partnership paves the way for strengthened financial connectivity between East Africa and Europe, while positioning Somalia as an increasingly vital player in the global digital economy.

GAROWE ONLINE