Sharp Daily
No Result
View All Result
Monday, July 28, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

De La Rue urged to cancel Somaliland currency printing deal

Brian Murimi by Brian Murimi
October 9, 2023
in News
Reading Time: 2 mins read

A prominent activist and philanthropist is urging U.K. banknote printer De La Rue PLC to cancel a controversial $42 million contract with Somaliland’s central bank, warning it could wreak economic havoc and impoverish millions in the breakaway region of Somalia.

In an impassioned October 5 letter to De La Rue CEO Clive Vacher, Ismail Ahmed said the deal to print 380 billion Somaliland shillings – nearly doubling the local money supply – would trigger rapid inflation and currency devaluation.

“This contract poses serious economic, ethical and legal issues, and risks plunging millions of children and adults into deeper poverty,” wrote Ahmed, founder and director of the Hargeisa-based Sahamiye Foundation aid group.

Ahmed said the poorest Somalilanders who earn primarily in local currency rather than dollars would be hardest hit by rising prices and a plummeting shilling.

RELATEDPOSTS

Understanding carry trade as an investment strategy

October 18, 2024

Why the Kenyan government wants to print money

September 15, 2024

“The highly unusual decision to print money, especially at a time when the country is preparing for presidential elections, is predicted to cause the value of the SL shilling to drop from 8,750 to over 20,000 per U.S. dollar,” he wrote.

Read more: Ruto signs Privatisation Bill into law

Ahmed argued previous currency printing by De La Rue has “impoverished millions in Somaliland” by fueling hyperinflation since the shilling’s introduction in the 1990s. The shilling’s value has fallen from 50 to 8,759 per dollar.

“While these transactions proved highly profitable for De La Rue, they impoverished millions in Somaliland,” he wrote.

Ahmed also suggested the no-bid contract was awarded improperly, without competitive bidding or parliamentary approval of a new 10,000 shilling note that’s part of the deal.

“The primary reason for this contract appears, then, to be rooted in corruption and De La Rue’s desire for profit,” he alleged.

Further currency devaluation would exacerbate poverty and child hunger as Somaliland deals with crises like COVID-19, Russia’s war in Ukraine and a deadly June market fire in the capital Hargeisa that left two dead, Ahmed warned.

“I therefore call on you to take a principled stand,” he wrote to Vacher. “I urge you to cancel the contract and return the $9.6 million that the Central Bank of Somaliland sent you to fund the transaction.”

The activist said that would “publicly demonstrate responsible corporate citizenship, align with the principles of ethical business conduct and avoid the responsibility for harming the welfare of millions of people.”

There are growing public protests and opposition from Somaliland politicians over the central bank’s currency printing plan. The bank says more cash is needed to pay civil servants and increase money supply.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

To freeze or not to freeze? Managing hiring in turbulent times

Next Post

Key aspects to empowering Africa’s smallholders through inclusive agricultural growth

Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

Related Posts

commercial illustrator
News

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025

LATEST STORIES

Shri Krishana Overseas lists on NSE

July 25, 2025

Why young professionals should care about pensions

July 23, 2025

How Kenya can reinforce fiscal rules to prevent recurrent budget overruns

July 23, 2025
commercial illustrator

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025

Transferring Your Retirement Benefits Between Pension Schemes in Kenya

July 23, 2025

Invest in stability: introducing the Cytonn USD money market fund

July 18, 2025

The Importance of Asset Diversification on Kenyan Pension Funds

July 18, 2025

Park your money where it grows: Why more Kenyans are turning to Cytonn Money Market Fund

July 16, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024