The al-Qaeda linked Islamist group Harakat al-Shabaab al-Mujahideen has warned the Somali mobile phone companies against running their mobile money services. Somalia has the Dahabshiil, and Zaad sercices from Hormuud Telecom and Somtel, however al-Shabaab has declared them un-Islamic.

This is seen as a significant blow to the welfare and economy of Somalia where the telecom sector is doing well and, as we reported a few weeks ago saving lives. .

The al-Shabaab group however is extremely powerful and, particularly in Southern Somalia the mobile phone networks are likely to concede to the demand to stop the services within three months.

Western banking is often condemned as being anti-Islamic for its payment of interest, which as with several other religions is banned. Mobile money however does not offer interest; it’s purely a transfer system which is allowed. The dispute is couched in terms of “Western control”, and while western systems are often un-sympathetic to the customs and mechanisms in other parts of the world this is more likely to be about control of financial systems. al-Shabaab has a vested interest in the local hawala system. This allows them to track and obfuscate the movement of money in the territories they control. A move to mobile money not only removes their ability to tax people and track their finances it opens the groups finances up to government inspection.

The al-Shabaab move has been condemned by the United Nations which controls the Somali capita Mogadishu, but rest of the country is not controlled.