How Golis Telcom emerged as a telco giant in Somalia

From the well-tarmacked streets busy with vehicles ferrying people and goods across different parts, to the markets filled with foodstuffs, clothes and other necessities, Garowe, the capital of Puntland, portrays all the hallmarks of an enterprising city.

The mushrooming construction sites, modern residential homes dotting the city, and an array of street lights which brighten at the fall of dusk, leave no doubt that this is no sleeping city.

Welcome to Garowe.

Far from the tainted image Somalia has had over the decades due to civil war and economic turmoil that has left the Horn of Africa’s economy on its knees, Puntland is quietly crafting a new story and Garowe, tucked almost 1,000 kilometres from Mogadishu, is at the heart of it.

Just this month, the city was hosting a critical event, the International Organisation for Standardisation (ISO) certification for one of Somalia’s biggest telecommunications firm, Golis Telecom, an event graced by Puntland Vice President Ilyas Osman Lugatoor.

“The ISO Certificate that was given today to Golis Telecommunications shows the trust and confidence that the world has in Golis. As vice president of Puntland, I am one of Golis' clients. I can also see that today's Mastercard launch is another milestone,” Mr Lugator said.

While the event may have gone down as a simple certification exercise, to locals in the country, it is the culmination of a developments, the enterprising nature of citizens and investments in business promotion.

Robust business model

Dr Abdirahman Mohamud, Golis Telcom’s Head of Business Development, notes that as one of the largest telcom companies in Somalia and primary network provider in Puntland, Golis has been at the heart of economic development in Puntland and has seen it all, from economic turbulences caused by drought and tsunamis, to civil wars and insecurity that has been largely been a tag associated with Somalia.

“In spite of that, Golis Telcom has survived because it has a very robust business model to endure volatilities and vulnerabilities it has encountered,” Dr Mohamud says.

He notes that Golis success has been mainly due to putting people’s and businesses’ needs at the centre of its operations, thus innovating solutions that speak to real market needs.

“Investors different sectors of business such as banking, real estate, money transfer and all other businesses depend on the services Golis Telcom provides. Golis Telcom central pillar of the economy in Puntland,” he says.

The company was established in 2002, just as Somalia was reeling under heavy impacts of the civil war.

But the company has thrived amidst the negative tag associated with Somalia, thanks to growing infrastructure in Puntland as more investors across different sectors set up shop, to the point of getting global recognition.

Dr Mohamud attributes the company’s growth to “a very robust business model to endure volatilities and vulnerabilities” such as introducing Sahal Mobile Money - Puntland’s version of M-Pesa - which has an app to enable users utilize it anywhere across the globe.

“We have AI which can identify your voice to use as password. That is very advanced level of business. We also have one of the cheapest internet in the world since we have fibre optic cables from Europe, France, Gulf countries and from Djibouti,” he notes.

Such have been among key factors opening up Puntland for business, drawing investors into the country now catching the tag of peace haven.

Such include Mr Dukhtuka Hanosho, a London-based investor in the mining sector, who just registered a company in Puntland this month, eyeing to grow the operations of his company.

“In UK, to get open internet such as what is accessible in Puntland you’ll need to pay about 30 pounds, but it is very cheap here. We just registered our company and we will start business next week. It was necessary to open a Golis account because really it is much better and easier than bank accounts,” Mr Hanosho said.

He cited easy mobile money solutions that would facilitate payments from the company’s head office in London and payments for importation of materials, together with the security assurance as among factors boosting his confidence to set up shop in Puntland.

Mr Musa Wesutsa, who runs a risk management consultancy firm in Garowe, notes that in recent years, there has been a steady growth in the number of corporates within Puntland seeking to improve their operational efficiencies to attain global standards, as more people across borders understand the safety of the business environment in the country, and come in to invest.

Business environment

“There is a lot of uptake of global standards such as ISO standards frameworks by banks and telcos really take up. We’ve seen that happening here. ISO standards become a very good vehicle to implement, as telcos and other organisations are seeking to improve the risk management frameworks they are looking for,” Mr Wesutsa says.

Abdikadir Mohamed, a resident of Garowe, that he could communicate with his family members in different parts of Somalia and even outside the country using his mobile phone or even send them money was once just a dream, especially when they separated following the civil war decades ago.

But today, he notes that a lot has changed, with everything from roads, airports, security and other key factors informing the business environment, just speaking of a new country.

“Communication with outside world has improved a lot. Today I can call someone in Mogadishu without any challenges, though communication from Mogadishu not as well. I lived in Saudi Arabia before and couldn’t connect with Puntland, but today there are connections, including bank transactions and mobile banking,” he notes.

With the country picking up pieces and burying the tag of insecurity that has for many years kept investors at bay, Dr Mohamud notes that things can only get better for the residents of Puntland, especially with support from investors in key sectors with potential to change livelihoods.

“One of the success factors that made our business survive all those turbulences is we actually care about our customers and we apply and comply with Know-Your-Customer (KYC) regulations. This helps in boosting security and stability across the region, by combating vices such as money laundering and terrorism financing,” he notes.