The Importance of the Xawilaad for Somali in the Horn

Recently, there have been a few studies on the xawilaad system and the remittance flows it processes. None of these studies deals specifically with the function of the system for life in the camps, and they also do not examine the role it plays on household level in detail. Nevertheless, the great importance of the xawilaad for the Somali economy as well as for individual households does become clear. According to Montclos (2000), there is nothing …

…migrant status of Somalis is often not regular and their financial networks are clandestine. The usual consequence is that they admit only very small amounts. This attitude also prevails in Somalia, in order to conceal potential wealth from possible donors. A third factor that complicates getting reliable statistics, is that remittances are transferred in different forms and through different channels; they may be sent as cash or as goods, through official agencies, relatives or travellers.