BUSINESS AND FINANCE REVIEW 2020 MANAGEMENT DISCUSSION & ANALYSIS Business and Finance Review 2020 P.1

About us

Somtel is a leading telecom and technology service provider with the widest network coverage in the Somali region. From our headquarters in Hargeisa and guided by our values, we are delivering an ambitious, new digital world to our 78% telecom customers across , Somalia and Puntland - one of the region’s fastest growing for mobile . We have grown fast by investing a superior communication infrastructure, and by harnessing the capacity of our people. We now offer voice, data and digital services toretail customers in our 3 markets in which our operations have telecom licenses. We also offer enterprise solutions to corporate and public sector customers. Overview The telecommunications sector is proven to be struggled with the coronavirus pandemic. the bedrock of most prosperous economies. Somaliland witnessed mainly the economic This is even more poignant for Somaliland as the impact of the pandemic from the month of advent of mobile money means that it is also the March onwards, when the government pro- most vital pillar of the country’s economy. With actively decided a country wide lockdown to COVID-19 and an aggressive price competition, reduce the spread of the virus. During the the sector has gone through turbulent times lockdown, the importance of the telecom over the past year with industry revenue collaps- sector was yet again underscored. Telecom ing. However, Somaliland’s and phone infrastructure acted as the backbone of the user base has grown rapidly over this period, economic activity during the challenging time propelled by the decreasing cost and increasing when every business was operating from a availability of smartphones and high-speed con- remote location. Somtel demonstrated its nectivity at affordable prices. With this, Somali- commitment to keep all its customers con- land is on track to become one of the best tel- nected all the time by undertaking special ecommunication markets in the region. During measures to assist low income group cus- this period of uncertainty, Somtel has been able tomers impacted by the COVID-19 crisis. The to defend its ground by holding on to its market Company introduced a $1 bundle with 5GB share. This can be attributed to Somtel’s strategy of internet and 500 mins so as to ensure of not simply being a pipe providing connectivity even low-income customers could stay con- but being an ecosystem of digital services with nected. Network investments were advanced an aim to win quality customers across verti- to boost network capacity in order to tackle cals and offer them brilliant experience across the upsurge in data consumption and ensure all touch points. Equally, very strong network uninterrupted mobile broadband connectivi- Keep up to date with us: investments and a reliable trustworthy brand ty to its retail and enterprise customers. Dur- has held the company very well even in testing ing the year, Somtel continued its focus on times. quality customers and maintained its obses- https://www.facebook.com/somtel4u sion with superior networks and seamless The government continues to be cognizant of experience to the customers. Somaliland’s https://twitter.com/somtel the stress faced by the sector as it is yet to legis- favourable market dynamics provide Somtel late for interconnectivity between the country’s significant mobile data and mobile money opportunities to capitalize on. With presence https://www.youtube.com/channel/UCt_BH6wu5STo191v-CMAu7A operators. Also, the temporary halt on the im- portation of towers and other relevant materials in underpenetrated geographies with prom- has proven to be a burden on telcos. During the ising macroeconomics, demographics and https://www.linkedin.com/company/somtel-international-ltd/about/ last quarter of the financial year, the whole world tele-density, Somtel stands to gain from its Somaliland operations. P.2 Business and Finance Review 2020 Business and Finance Review 2020 P.3

The year 2020 has started with the COVID-19 pandemic which is inflicting high and rising human costs worldwide. As a result of the pandemic, the global economy is projected to contract sharply by (negative) 3% in 2020, while as the pan- demic fades in the second half of 2020, the global economy is projected to grow by 5.8% in 2021. As per IMF, effective policies are essential to forestall worse outcomes. The pandemic impact is expected to have two phases: a phase of containment and stabilization followed by the economic recovery phase. The economic growth for 2020 may get impact- ed in the first phase due to necessary measures required to reduce con tagion and protect lives. The recovery phase in Economic & late 2020 is expected to mark substantial targeted fiscal, monetary, and financial market measures to support affected Environment households and businesses. Review Africa The Sub-Saharan Africa economy grew by 3.1% in 2019 vs. 3.3% last year. The economic activity in Sub-Saharan Africa was impacted by softening external demand, heightened global policy uncertainty,and falling commodity prices. Domestic fragilities in several coun- Global GDP continued its trend with a growth of 2.9% tries further constrained activity. The growth was driven majorly by countries like Nigeria, Gabon, Chad, Ghana, Côte d’Ivoire, Ethiopia, in 2019 vs. 3.6% last year, despite weakness in global Kenya, Tanzania, Uganda, and DRC. trade and investment. This weakness was widespread, affecting both advanced economies – particularly the Euro Area – and Emerging Market & Developing With the recent crude oil price drop, dollar appreciation and global coronavirus impact, economic growth in Sub-Saharan Africa is Economies (EMDEs). The year saw heightened policy expected to drop to -1.6% in 2020, followed by a pickup to 4.1%n 2021.i IMF expects sectors such as construction or services to lead uncertainty and weighed on international trade, con- the growth recovery in 2021. fidence, and investment due to the prolonged period of rising trade disputes between the United States and China. With the agreement for partial rollback of Somaliland tariffs, the financial markets sentiments improved by The Somaliland economy has been heavily impacted by COVID-19 resulting in quite a significant downturn in the most significant the end of the year. During the year, major central sectors, namely remittances, livestock exports, aviation and hospitality to name a few. Along with remittances, the bedrock of the So- banks loosened policy, with interest rates in many ad- maliland economy continues to be the livestock trade and decisions due to COVID such as Saudi Arabia’s restrictions on Hajj this year vanced economies reaching unprecedented lows last have had a poignant impact. With almost 80% of livestock exports from the wider East Africa region going through Berbera, the Hajj year. Financial conditions in EMDEs improved in par- season accounts for some $200-300 million in revenue for Somaliland. Equally, some local decisions have also had a significant impact, allel, except in economies perceived as risky. the decision to close schools had an impact on the informal economy as small shops and kiosks selling snacks to school children were

Economic activity in advanced economies grew by forced to close, a sector with an estimated revenue of around $3 million per month. 1.7% in 2019 as compared to 2.2% in 2018. The slow- down was due to weak manufacturing activity and policy uncertainty associated with trade tensions. Growth in the United States decelerated amid slow- ing investment and exports, while consumption was resilient with unemployment being near a five dec- ade low along with a solid wage growth. Uncertainty concerning Brexit and weakness in the industrial and automobile sector had an impact on the growth in the The year 2020 has started with Euro area. the COVID-19 pandemic which is Emerging Market and Developing Economies (EMDEs) inflicting high and rising human grew by 3.7% during 2019, led by India & China. The costs worldwide. growth came at a backdrop of EMDEs continuing to experience substantial weakness, with industrial pro- duction, trade flows, and investment decelerating sharply during the year. Economies that are deeply integrated into global and regional production and trade networks – most notably in Asia and Europe – particularly suffered from global trade tensions and decelerating trade flows during the year. P.4 Business and Finance Review 2020 Business and Finance Review 2020 P.5

Trends In The Sector Industry Overview

Somaliland’s total customer base stands at 1.2 Mn as per World Bank estimates. The completion of the consolidation

within the Somaliland Telecom Market into two large private players accelerated the SIM consolidation leading to an

increase which in turn raised the customer base of Somtel by a base of 40%as predicted for the end of 2020. In terms Somaliland’s demographic advantage in terms of of Internet Service Providers (ISPs) Somtel is the leading provider in Somaliland far outpacing its two main competitors. young population is proving to be a big boost to mobile data penetration. Data usage per subscriber The introduction of the router has cemented Somtel’s leading market share. is growing by an average of 25% year on year.

Presently, the GSM and Internet services Somtel provides has made it possible for subscribers to get the cheapest

internet browsing rate in Africa and the 7th in the whole world. This was determined in a survey covering the cost of 1GB

Post COVID-19, work from home may become a data pricing in 230 countries by Cable.co.uk. Somtel intends to further reduce pricing without compromising services new normal for many organisations, thus creating taking our subscribers to the top of the world in terms of super services provided and affordable rates paid. Somtel opportunities for different has grown fast by investing on a superior communication infrastructure, and by harnessing the capacity of its people. services across the spectrum- fixed line, broadband, enterprise solutions besides pure mobile Somtel now offers voice, data and digital services at an average price of US 50cents per gigabyte to retail customers in connectivity our 3 markets in which our operations have telecoms licenses. Somtel also offers enterprise solutions to corporate and

public sector customers tailored to their scope and service expectations.

The role of telecom companies is no longer restricted to just providing the “pipe” and the right price plan. It is now about creating an ecosystem of digital services Development in Regulations (music, content, payments and much more) and leveraging data, network, and distribution assets to deliver these services. Rapid growth in usage of Over the Top (OTT) platform creating opportunities for all. ◊ Introduction of the Spectrum Management System: The Ministry of Communications and Information Technology recently piloted Somaliland’s first SPS with the aim being to monitor and stem frequency interference.

With Somaliland at the forefront of global cashless ◊ Interconnectivity: The government’s refusal to legislate and enact interconnectivity continues to be a barrier to fair economies and an increasing acceptability of competition. digital transactions, payments via smartphones are driving financial inclusion. Telecom industry, with an ◊ Importation of Towers: The government’s recent halting of the importation of cell towers could prove to be hin- established distribution network, is best placed to drance if not lifted soon. capture this opportunity.

◊ New Telecoms Legislation: First law is monitoring telecom outlet compounds including tower sites, the second law

Convergence of fixed and wireless technologies is is trade license, and the third and the final one is registering sim cards. becoming more useful with possibilities to provide enhanced voice calls experience with the use of Wi- Fi calling (Voice over Wi-Fi). P.6 Business and Finance Review 2020 Business and Finance Review 2020 P.7

One of the most important foundations upon which we deliver services to our customers is our network. In

2020, Somtel made multimillion investment with Huawei to rollout hundreds4G LTE sites, to expand Dual Data

coverage, to effect capacity enhancement, as well as to build higherIT readiness. To achieve high levels of customer Message satisfaction, Somtel has continuously enhanced its product portfolio, including digital products and services, where innovation, relevance and simplicity are a foundation. We are developing both our digital selfcare app and website The CEO and the DCEO portfolio. My Somtel app, the online self-care app will give customers the opportunity to recharge/pay bills as well as getting notified of new products and services.

Somtel’s journey to simplify digitalisation initiatives and offer relevant products and services has driven healthy

financial performance, which ultimately positively impacts returns. Somtel aims ot bring together the realms of

advanced digital connectivity and stay relevant to deliver a revolutionary suite of products and services, which

will in turn expand the scope for digitalisation in Somaliland. We will continue to echo responsible leadership

behind every aspect of our strategies, commit to delivering superior network performance, and provide a world-

class customer experience. With the growth potential of the marketand our focus on operational efficiency,

simplification, and driving value for our customers, we are optimistic in delivering profitable growth going forward.

Finally, we would like to extend our appreciation to our Board and het Vice Executive Chairman for their continued

guidance and active engagement for their cooperation and facilitation. We are humbled by the trust that our

Customers have placed on our network and services. We are always committed to maintaining high standards

and delivering the best for our Customers. We also extend our sincerethanks to our Management Team and our

employees for their hard work and commitment.

Despite the highly competitive, fast-paced and challenging market Revenue Data Revenue Voice Revenue

environment, Somtel has delivered another record year of soundd financial an

business performance and has increased its subscriber base market share. The Company Somtel demonstrated commendable growth during the year driving strategic reported a priorities with speed and agility. The Company reported a revenue increase of revenue increase 35% for 2020, registering 101% of the overall target. Data revenue increased of 35% for 2020, 22% 29% 87% registering by 22% and voice revenue increased by 29%. As a result of the strong revenue Voice revenue performance and alongside operating cost efficiencies, operating profit forhe t The Company reported a Data revenue 101 % of the revenue increase of 35% increased by 22% increased by 29%. 7 overall target. year 2020 increased by 84% from last year. Somtel recorded a healthy growth for the year2020 of its subscriber base and correspondingly of reported usage. The Company

acquired 40% YoY MBB subscriber growth, as well as adding over 25% fixed

wireless subscribers to its network. P.8 Business and Finance Review 2020 Business and Finance Review 2020 P.9

PRODUCTS & INTERNET LANDLINE

Monthly Data Bundles-cash: 18GB , 30GB , Fixed line- Local Calls: Land Line -2-Land 82.5GB 102GB, 133GB, 160GB Monthly Data Line (Monthly charges) SERVICES Bundles-E-Dahab top-up: 18.5GB, 33GB, Fixed line- Local Calls: Land line 2 Both 85GB,105GB, 135GB, 165GB Land Line & Mobile Phones (Monthly -Monthly Capped and Uncapped bundles Charges) 75MB, 150MB, 300MB, 600MB, 1.2GB, 1.8GB, 2.4GB -Other Data Bundles: 1GB, 5GB+500 Minutes

speed indeed that makes your smartphone experience better. VOICE BUNDLES VAS Monthly Voice Bundles: Unlimited call+ free SMS - Sahay Akhiro "Muraad", Unlimited calls through out Somalia. - Risaala Weekly Voice bundles : Unlimited calls +Free SMS, - MCA Daily Voice bundle: Unlimited calls +free SMS - CRBT Pay as you go-voice bundles: 50 Minutes day time - Raad-raac Tracking System 100 Night minutes, 37.5 Minutes, 25 Minutes, - Reachability 12.5 Minutes, 6 Minutes

HYBRID BUNDLES MIFI Monthly Hybrid bundles "Combo plans" Monthly Bundles -MIFI Bundles Unlimited calls+ 1GB Internet daily , Unlimited calls+ Volume : 17GB, 30GB, 82.5GB 1.5GB Internet daily . Unlimited calls+ 10GB Internet 102GB, 133GB, 160GB, 220GB Weekly Hybrid bundles "Combo plans" Week Unlimited calls + Data 1GB Daily, Unlimited calls + Data 700MB Daily

SOMTEL HOME ROUTER FIXED WIRELESS ACCESS (FWA) Home Basic Up to 2MB Home Plus: Up to 4MB Home Basic Up to 2MB, Home Plus Up to 4MB Home Premium: Up to 5MB Home Premium Up to 5MB, Business Basic Business Basic: Up to 7MB Up to 7MB, Business Plus Up to 9MB Business Business Plus: Up to 9MB Premium: Up to 12MB Business Premium: Up to 12MB

BULK SMS eDAHAB Bulk SMS-Nationwide: All active GSM eDahab is a secure and seamless Bulk SMS-Regions: E.g Hargeisa, Burao etc e-wallet. Which make cashless and hassle free transactions anytime, anywhere with eDahab.

VOIP COLOCATION USA: Voice Host your data and applications securely UK: Voice on our cloud platforms and data centres.

Voice Communications Broadband Internet Mobile Data eDahab Services Solutions MANAGED SERVICES OMNI-CHANNEL Our voice eDahab is a secure and Somtel Solutions Create an omni-channel experience for your communications wireless Internet fastest 4G+ seamless e-wallet. brings together the customers by connecting their physical and services is divided access through a network, with Which make cashless best industry digital digital worlds together into local and portable modem, We speeds up to 3Mbps and hassle free experts, assets and international, the are the leading which makes it the transactions anytime, platforms with a international being internet service Country’s fastest anywhere with unique service and VOIP service and provider with reliable 4G+ network. eDahab. operating model. IoT RAADRAAC and high speed Choose the pack or Secure and seamless e-wallet. Which make International roaming cashless and hassle-free transactions service and the internet network plan that suits you anytime, anywhere with eDahab. national voice service We know that the best and surf, communication faster internet lays share photos and consists of Fixed more time in your download videos Monthly rates hands and allows you quicker than ever to achieve more before. things with our broadband Internet. P.10 Business and Finance Review 2020 Business and Finance Review 2020 P.11

OUR JOURNEY

We h ave e mbarked o n a digital journey by ensuring the provision of high-tech and reliable communication services. W e marked o ur 10th anniversary b y making possible f or o ur s ubscribers to get t he c heapest and fastest internet browsing in Africa and the 7th in the whole world

Launching of Somtel Switch to Somtel Puntland, eDahab Campaign Hadal oo Hel Launching of Mobile Wallet Modernized Launch of Technology and & Hadal oo Hel Promotional network & 4G Kasmaal Promotional Campaign eDahab Launching of Technology TV Show Campaign Phase II Shilling VoLTE & eSIM 2011 2013 2015 2017 2019 2021

2010 2012 2014 2016 2018 2020 Launching of 3G Launch Somtel Somtel Somalia DARE 1 Submarine Somtel Deployment of Somtel Scholarships IPO Launching Cable Deployment & Launching Somaliland in the regions Somalia Program and Launching of Somtel Win Hajj of Somtel Somaliland IPO & Launching of Trip Program Smart Pay & 5000 Campaign P.12 Business and Finance Review 2020 Business and Finance Review 2020 P.13

eDahab

As is evident, eDahab has merged with Somtel at the

beginning of this year. This merger combines all the eDahab Transactions BUSINESS core functions and operations of eDahab into the » Shillings (SLSh): P2P Shilling transactions have Somtel structure coming under the commercial and increased by 323% compared to 2019. With regards

SNAPSHOT finance departments. These areas include eDahab to P2M transactions, we have seen an increase of

sales operations, marketing and customer care. As 210% for the same period.

a result of the merger, we can proudly signify that Subscribers eDahab’s sales have increased by 64% in comparison to » Dollars (USD): P2P Dollar transactions rose by 2019. Moreover, we have merged eDahab cash in/out 79% in contrast to 2019. In that same light, P2M In 2020, we have increased our market share by operation throughout Somaliland as well as we have transactions accounted for an increase of 51% 78% with the MBB subscribers. This has shown an unified the cash in hand for each shift, saving more during the same time. average increase of both monthly active customers liquidity and reducing the risk. and contributing customers by 61% and 55% Cash-In Cash-Out respectively. Subscribers » Shillings (SLSh): Cash-In transactions for the

» Individual: eDahab’s new individual subscribers reporting period rose by 66% in relation to last

have increased by 350% in comparison to 2019. This year’s figures. On the other end, SLsh Cash-Out

is in part due to the merger of eDahab into Somtel transactions shrunk by 49% compared to last year’s In 2020, we have increased our which led to sustained and coordinated marketing figures. market share by 78% campaigns, as well as the new self-registration

feature and the DMT remittance initiative where » Dollars (USD): Cash-In transactions for USD rose

customers receive transfers through eDahab, which by some 68% in comparison to 2019. On the other

were introduced by the Vice Executive Chairman. hand, Cash-Out transaction saw a decrease of 35% transactions being processed.

» Merchant: Merchant registration has also

increased by a figure of 37% in the same period.

As is the case with individual memberships, this Fixed Wireless Access Usage Renewal is also in part due to the merger. Along with the

We have cemented our position as In 2020, there has been a significant According to our OSS-BSS figures, usual eDahab operations teams, there is also a Somaliland’s top broadband provider increase in data usage in comparison new/renewal sim cards have with an average increase of about 25% to 2019. Usage has increased by increased by 75% as of December, dedicated merchant operations team that is tasked despite the challenges the company an average of 83% although this 2020 with marketing and increasing merchant usage. has faced with internet outages in Q1 unfortunately does not reflect in the and Q2 as well as the unsuccessful revenue growth. Despite our successes, there are gaps in the reach merger between Somtel and SO! of eDahab’s merchant services in certain market

segments such as busses and other transport

operators and street vendors. P.14 Business and Finance Review 2020P.22 BusinessP.23 and Finance Review 2020 P.15

KEY HIGHLIGHTS

Value Added Service (Vas) Somtel has had a watershed year, moving to new heights in terms of its core business but also reaching some key milestones more broadly. 2020 saw the introduction of new VAS programmes for our subscribers. Structurally, there is a dedicated department called VAS. This is Somtel’s enterprising unit where new and potential ideas from the public are changed to reality. Young entrepreneurs who have innovative business ideas, just bring the idea and we help turn those ideas to reality. Since its inception in 2019, there are five profit sharing initiatives entertained by Somtel which included Raad-Raac and a fleet Management System, Safar - the Somaliland Uber-like taxi and travel services. These were mainly educational and included the following: This year has seen Somtel reevaluate its corporate governance structures, with the commercial department now being given • Risaala much more autonomy to ensure profitability across the company. This has allowed the company to reach more customers • Sahay Aakhiro in more locations with the company’s biggest marketing campaign to date. The ‘5000’ campaign has been instrumental to the • Raad Raac company’s recent growth and has ensured the brand reaches customers in far flung corners of the country whilst rewarding • Subcis Somtel’s most loyal users. The Somtel ‘5000’ is the epitome of cross Group cooperation. Hyundai Motors, for instance, • English Mobile Academy provided the cars. Samsung, the smart cellphones and Bank International providing bank accounts for cash prize winners. The exercise was made easy by the history of collaboration which the companies’ shares in providing essential, lifesaving, non-profit services to the public which, more oftenhan t not, revived and sustained the spirit of community-driven schemes. Halfway into its twenty-week span, 2500 of the prizes have already been handed over to lucky winners, at 250 Campaigns valuable gifts per week. These include six brand new Hyundai cars. Of the six, subscribers in Hargeisa won 2, Borama 1, Among the other highlights, Somtel has been at the forefront Gabiley 1, Buuhoodle 1 and Burao respectively. of ensuring Somalilanders an easy transition into lockdown during the COVID-19 pandemic. The introduction of the $1 Somtel has also continued sponsoring key shows including the popular Kasmaal game show which airs on national television. bundle which allows customers 5GB and 500 mins of airtime Equally, the ‘Garo oo Guulayso’ programme through social media has become the most popular programme streaming on was a new innovation in a country where internet costs are Ku Hadal 24 social media. Sacadood usually at the higher end of the pricing spectrum. In March, the company celebrated its 10th anniversary marking a Corporate Finance critical milestone for Somtel as it has been a bedrock of the Ku Hadal Somaliland economy throughout that time and continues to Bisha Oo Dhan The year 2020 has been an exciting time for Somtel as we announced terms of our initial public offering (IPO), and begun to be an innovation champion. HADAL OO HA DAALIN advertise our interest in going public. Since the company reaches a stage in its growth process where it believes it is mature enough and claimed unicorn status. This is a big step for Somtel as it provides a greater ability to grow and expand as well as increase the company’s exposure, prestige, and public image, which can help the company’s sal es and profits. Somtel has long been monumental to new innovation in KU SHUBO OO Somaliland and that trend has continued through 2020 KU GUULAYSO with the introduction of a number of new services. In June, OO ABAAL MARINOOD Somtel launched the 4G router in partnership with Huawei and has proven to be a success as it eases the setup of internet services for users. This year, the company also GAADHI OO HYUNDAI AH launched the e-Shilling facility through eDahab allowing 10 civil servants and other government employees to get their salaries paid directly to their accounts in partnership with the Somaliland Central Bank. Such digitisation was also seen DBI through the introduction of DMT remittances through the eDahab platform, ensuring smooth and efficient transfers WAXAA KALE OO AAD KU GUULAYSAN KARTAA: Dalxiis Damal Hotel, Qasaalado, Mobilo, TVs, Lacag iyo Dahab for customers. Kaga Shubo eDahab *101# P.16 Business and Finance Review 2020P.24 BusinessP.25 and Finance Review 2020 P.17

Human Resources Management Somtel is not only a leader of the telecom industry, but also one of the most CLIMATE CHANGE - attractive employers in the country. We develop and promote our employees, motivate talented youth and attract experienced professionals. Achieving our strategic objectives and maintaining our growth is closely related to creating MOVING TOWARDS GREEN an engaging work environment. In 2020, we brought on board a number of seasoned executives including the CCO, CFO as well as creating new roles including the Senior Director of Services, Senior Director of Human Resources and the Regional Senior Director.

Gender Diversity Somtel being a responsible corporate entity, is committed Somtel is committed to attracting and developing more women leaders to a long-term sustainable approach to caring for and and experts across the company because we believe that increased gender safeguarding the environment and climate impact. In order to safeguard the environment, the company equality is a competitive advantage and creates shareholder value. There is a conducts its business in such a way so as to prevent focused Gender Diversity aspect with active and regular involvement from the pollution and to minimise the adverse impact of its senior management team that is playing the role to sensitise the culture and activities on the environment. Somtel continually strengthen the female pipeline, and to create a support system that builds improves its performance against targets associated with women up for success. For instance, there is a concerted initiative to promote its environmental aspects to comply with all applicable women to positions of trust, with most cashiers and customer support environmental legislations. positions now being allocated to women. According to the Somaliland Labour Act, the company also provides one the most generous maternity packages In line with its sustainability journey, Somtel has taken a number of initiatives to reduce its carbon footprint of any establishment in Somaliland. The package provides for 4 months of maternity leave with full pay for staff. increased use of solar energy over fossil fuel, limiting the Casual Staff use of valuable resources, reducing travel requirements This year, Somtel recruited over 100 young casual workers for our outdoor for operations, as well as creating greater environmental campaigns in June. This ensures that young people who were out of school due awareness among employees and stakeholders. In to COVID-19 could get casual employment as well experience to aid in their following those principles, dozens of sites have now been future endeavours. The programme culminated with the top 20 being taken converted to operate on solar power with hybrid power $ on as permanent staff in the various departments of Somtel. Sincehis t pilot systems installed. The newly introduced hybrid sites contributed 29% of the 41% of fuel saving cost in this year. was successful for both employer and employees, the company has decided Despite the conversion and the savings, the capacity of the to take on a second batch of over 90 who are due to commence work soon. Had this not been the case, the increased capacity would 41% Corporate Governance Practices have resulted in higher fuel consumption thus the impact As part of its governance outlook, Somtel is committed to ensuring the highest on the environment being much greater. standards of governance designed to protect the interests of all stakeholders while promoting integrity, transparency and accountability. The Board and the Executive Management Team also put their best efforts to comply with all the laws of the country and all internal regulations, policies and procedures to make Somtel a thoroughly transparent company.

In that respect, Somtel has recently gone through a thorough restructuring to ensure maximum efficiency and productivity. With a new corporate governance structure instated (as per the below graphic), Somtel now has a more sleek and streamlined approach to business. The hierarchy and reporting line is now more direct and straightforward, coupled with the regions now being bordered. This ensures that finance operations are easier to process and transparent throughout the company. Equally, the introduction of a new Regional Director position on the advice of the Vice Executive Chairman, has thus far proven to be fundamental to Somtel’s new corporate governance strategy as it guarantees a more accountable and well-defined reach between the regions and the top management of the company P.18 Business and Finance Review 2020 Business and Finance Review 2020 P.19

CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

I was honoured to visit Dahabshiil agency in Hargeisa this morning and praise the technical support they are providing to the next Parliamentary elections. The private sector as an engine for development and a support to democracy

Nicolas Berlanga - EU Ambassador to Somalia P.20 Business and Finance Review 2020 Business and Finance Review 2020 P.21

OUR PARTNERS

DISCLAIMER:

This report contains statement regarding the future in connection with Somtel growth, initiatives, profit levels, outlook strategies and objectives. All statements regarding the future are subject to inherent risks and uncertainties and many factors may lead to actual profits and development deviating substantiallyfrom what has been expressed or implied in such statement. Somtel Somaliland Call : 333 or 111 [email protected] www. somtelnetwork.net