Effects Of Telecommunication On Economic Growth In Hormuud Telecom, Mogadishu, Somalia

ABSTRACT

The study of the effects of telecommunication on economic growth Mogadishu state of

Somalia was carried out on Hormuud Telecom. The study had three objectives.

To examine the impact of Homiuud Telecommunication Company on improving people’s

standard of living in Mogadishu. To establish the contribution of Hormuud Telecommunication Company on employment creation in Mogadishu of Somalia.

To assess the relationship between Telecommunication and economic growth in Somalia

The study findings revealed that the telecommunication company has brought about an

improved standard of living in the community by; improving the performance of business

through improved communication created awareness by promoting people’s access to

information through internet and has also enabled people to learn some ICT application.

The study revealed that the telecommunication company has created direct and indirect jobs. Additionally, the company has also enhanced the capacities of youth to train, develop and empower them with skills fit to compete in the advancing technological world.

Telecommunication sector has produced a position impact on the economy and society.

The telecommunication sector is indispensable for economic development. This is because

Telecommunication infrastructural investment can lead to economic growth in several ways:

transaction costs of data collection, placing and receiving orders have greatly reduced due to the availability of advanced telecommunication infrastructure.

The study findings showed a significant relationship between telecommunication and

economic growth with a significant level of 1%. This was an indication that Hormuud

Telecom has played a significant role in the economic growth of Mogadishu in Somalia.