So can you explain how there is 32 billion mobile money transactions a year? or is that not realistic?
Sure thing, but i will be a bit busy the next few days will see if i can squeeze sometime in to post it.
Nigeria’s GDP per capita is same as Somalia
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So can you explain how there is 32 billion mobile money transactions a year? or is that not realistic?
Sure thing, but i will be a bit busy the next few days will see if i can squeeze sometime in to post it.
no its not realistic at all its way off base. its like me taking the 155 million transaction per month and saying our population really not 18 million its actually 75 million. there are 50 million plus hidden people running around. you're using the data completely wrong
Approximately 155 million transactions, worth $2.7 billion, are recorded per month. (from 2018 report)
What a ridiculously false analogy lmaaoo
Transactions does not correlate with the population size. Mobile transactions reflect economic activity, not the number of people. Each person or business might make several transactions in a month, so the number of transactions doesn't directly tell you how many people are involved.
The 36% of GDP from mobile transactions is significant, but it's still only part of the picture. GDP includes many other factors (like agriculture, livestock, services, trade etc.), and the mobile money sector, while large, doesn't capture the entire scope of economic production. The rest of the 64% of GDP that is. Money transfers alone do not increase GDP only the production of real value does. If a business sells a product, only the final sale value is counted, NOT every payment transfer along the way.
So there is no way mobile transactions alone can be valued at more than 3x times the official estimate of GDP. And have similar transaction volume to economies with 90-100 billion in GDP (Ghana & Kenya)
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Yeah I'm sorry but that analogy makes no sense. It's possible there are errors in the accuracy of tracking transactions. But where actually tracking money circulation. It's a one to one comparison not some approximation
you cracked the case there is hidden 80 billion dollars floating around in somalia. 540 billion missing since 2018 how did we get it so wrong
my point is using unrelated numbers to draw conclusions. gdp is not money moving through mobil phones which is same money being counted many times over.
you cracked the case there is hidden 80 billion dollars floating around in somalia. 540 billion missing since 2018 how did we get it so wrong
It's not really hidden, its just not counted.
And why are acting like i am suggesting something ridicilous or outlandish when you legitimately have economies like Kenya, Nigeria and Ghana that increased their GDP by 60-80% even by counting the missing economic activity
It happens.
It's not unrelated at all. Mobile money transactions reflect real economic activity, meaning they directly contribute to GDP. So, mobile money transactions are a direct part of GDP calculations. NOT separate from GDP.. GDP is a measure of yearly economic production, which aligns with mobile money transaction volumes. . Somalia’s GDP and economic output is driven by real industries like trade, logistics , livestock/agricultural exports, real estate/construction, telecom and fin tech/banking, and other services. Mobile money transactions capture these real business activities, NOT just repeated personal transfers.
And the way it works is that they measure it using ''valued added' methods meaning money transfers alone do not increase GDP only the production of real value does. If a business sells a product, only the final sale value is counted, NOT every payment transfer along the way.
It's like what i say enters the ear and exits the other side.
If this was true then by your logic we would see 50 or 60 trillion dollars worth of transactions in the united states. But thats not what we see instead what we get is something like 9 or 10 trillion .
How does Somalia compare to Nigeria and Ghana when comparing the informal data?
Somalia is more comparable to Kenya in many respects when it comes to informality 83%. But i explained it here:
your understanding of gdp and macroeconomics is very little. no point continuing this as I'm not interested in reposting same formulas and data . 90 billion is laughable im retarded for even entertaining this conversation
You want to see yourself as retarded, then go right ahead. Maybe it's suppressed feelings. Kidding.
Well known economists widely say that that certain economies in Africa in reality have 3x the size of official GDP due to the informal sector and i actually explained to you how they calculated/measure the value of transactions, it's not repeat transfers but if you want to pretend to know more then go right ahead.
Many assume Somalia survives on remittances and aid, but remittances make up just 6% of mobile money transactions ($1.92 billion out of $32 billion). According to the World Bank and UN. This suggests local business activity is much larger than previously thought.
Somalia has a highly informal, cash-less economy that isn’t fully captured in official GDP statistics.
The Somali National Bureau of Statistics (SNBS) relies on limited formal sector data, missing much of unregistered trade, livestock exports, and services.
For example the livestock trade is a multi-billion-dollar industry, but much of it happens outside formal banking systems, making it underreported.
The SBS say all of this here:
Read '' The availability of data for informal enterprises is far lower than for the formal sector, so the information that could be collected by SNBS would be much more limited''
Democracy? What it really means is that western ngos have access and the resources to estabcontrol over your country .
Democracy just makes it wasier and comfortable because they already perfected how to pervert democracy , they have 100s of years of practice in their own countries.
Dealing with a dictator or god forbid a full system of government and it can get hard and cost more than the budget allocated to do their job.
Nigeria is not independent, most countries in the world are not independent but colonies in all but name.
Even developed countries are not sovereign, Japan cannot follow its national interest and must align with US policies , just like Germany.
The only independent countries used to be just
China, India, Iran, Russia, Venezuela, North Korea and Eritrea.
Last year they were joined by 3 new african countries , mali, Burkina Faso and Niger.
Nigeria is not independent and cannot really develop without sovereignty
I don't think it's 90 billion but I wouldn't be surprised if was 2 possible even 4 times as high as it is now. The idea that mobile transactions are being counted several times makes little to no sense. Do you legitimately think that people are so dumb they can't account for this. You won't find a single country where transactions are several times the gdp like you assume is the case for Somalia. The only logical conclusion is that somalia is not an exception and that mobile transactions are not several times the gdp.
They use value added methods. But he doesn't understand it despite me explaining it to him, they measure the value. Mobile money in Somalia is not just about "moving the same money around" it represents actual consumption, trade, salaries, and payments for goods and services. When money moves in an economy, it represents production, services, wages, and consumption. GDP is not just "money sitting" it measures how much value is created and exchanged.
In cash-based economies, GDP is measured by tracking transactions that happen in formal banking and cash markets why should mobile money be treated differently?
Anyways the truth of the real size of the Somali economy will reveal itself eventually. But anything below 50 billion is mathematically inconsistent and would break global patterns.
It's like you said If Somalia were an "exception" where mobile transactions were multiple times its real GDP, it would contradict global economic patterns. If Somalia’s GDP were only $10 billion, it would mean mobile transactions are 3x GDP , this has never happened in any economy.
