Record money coming home

The force

Somalis abroad send money home every month: for food, rent, school fees and medicine, and to start businesses. It is one of the largest flows of money into the country.

• Total inflows reached a record $6.78 billion in 2025, up from $6.43 billion in 2024. Individual remittances were about 46% of this, roughly $3.1 billion (The EastAfrican).
• Bigger than the economy alone. In 2025 national disposable income was $17.3 billion against GDP of $13.2 billion, about 30% higher, mostly because of money from abroad (NBS, GDP 2025).
• Bigger than aid. In 2023, remittances were more than all development and humanitarian aid combined (Hiiraan).
• Start-up money. Diaspora money supplies up to 80% of the capital used to start small businesses (TRT Afrika).

Sources differ

The $6.78 billion counts all private transfers, including business and aid-group flows. World Bank figures for personal remittances only are lower: about $1.73 billion in 2023 (Hiiraan) to about $2 billion (African Business). The national statistics office gives $2.72 billion for 2024, 22.7% of GDP (NBS Migration Statistics 2025). We show all of them.

How it is changing

• Cost. Sending money cost 6.6% on average in late 2024, against a UN target of 3% (Hiiraan).
• A push to digital. Since 1 January 2026 the US charges a 1% tax on transfers paid in cash, money orders or cashier's cheques. Transfers paid from a bank account or a US card are exempt (RSM).

Who rode it fast

• LemFi, a remittance app for migrants, processes about $1 billion a month, and its users and revenue doubled in two years (TechCabal).
• Wave charged a flat 1% fee and has more than 20 million monthly users (Launch Base Africa).

What it means for young Somalis

Most of this money pays daily living costs. Money that builds businesses and pays wages lasts longer. The flow is already the largest in the economy, and it is moving to digital channels.