Economy
Moyale Residents Face Over Three Years Without Banking Services
Addis Standard · 6 hours ago · Read the Full Story on Addis Standard
AI SUMMARY
Residents of the border town of Moyale are forced to travel over 200 kilometers to access basic financial services following a three-year suspension of local banking operations.
- Banking and money transfer services have been unavailable in Moyale town for more than three years.
- Residents are forced to travel over 200 kilometers to towns like Mega and Yabelo to send or receive money.
- The disruption has severely impacted families supporting university students, traders, and patients needing urgent medical funds.
- Residents without mobile banking access rely on informal couriers or the black market, exposing them to security risks and delays exceeding 72 hours.
- A government official stated that financial restrictions are intended to prevent illegal trade, contraband, and illicit financial flows, requiring business licenses for certain transactions.
- Officials noted that the services are not entirely banned, but restrictions apply to bank accounts opened outside Moyale.
- An economist from Borana University stated that the restrictions have crippled the formal market economy and reinforced the black market.
- Experts recommend reopening money transfer services while strengthening oversight through technology-supported mobile banking and enhanced anti-money laundering controls.
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