Many homes in Somalia don’t have formal addresses. Here’s how an Edmonton startup is helping | CBC News

Edmontonian Jibril Ibrahim recalls his sticker shock when he discovered sending medicine to his cousin in Somalia during the pandemic would cost him $400.

It’s just one example of the exorbitant fees Somali-Canadians pay to send urgently needed packages and money depended on by loved ones in a country recovering from decades of civil war.

One reason why the cost is so high is that many houses lack formal addresses, Ibrahim said, which is also a massive barrier to governance, security and economic growth.

The dilemma inspired Ibrahim to apply his know-how as a professional engineer and community advocate in collaboration with other Somali-Canadians to develop a system that assigns properties in Somalia with a standardized, unique and verifiable address.

Now, three years later, Karaar Digital Address (KDA), Ibrahim’s Edmonton-based startup has pledges of support from several states in Somalia and has run multiple test pilots in in the country. KDA has also established offices in Minneapolis and Mogadishu.

“Now you have a system in place on the ground that will deliver those things to people in need,” Ibrahim said in an interview earlier this month. 

“This will be significant in terms of people helping their loved ones back in Somalia, but also for Somali-Canadians who want to do business in Somalia.”

When civil war broke out in 1991, Somalia’s postal system collapsed.

Attempts to revive it have been hindered by the lack of a robust road system typically used to generate addresses, Ibrahim said.

That’s where KDA comes in.

Users simply download the app to claim an address that is navigable via Google or Apple maps.

The address is finalized by a team that visits the home to verify the identity of residents.

‘Game-changer’

Ibrahim expects KDA’s system to transform life in Somalia.

He said the platform can help governments register voters and collect taxes which would improve service delivery and infrastructure, while the collection of census data could pinpoint where resources should be distributed, and fine-tune emergency responses.

Establishing the system would also usher in a wave of new opportunities for entrepreneurs and job-seekers, according to Ibrahim, in areas including e-commerce, finance, transportation, deliveries, logistics and telecommunications.

“This will be a game-changer in terms of how business is done in Somalia and the rest of the East African countries as well,” Ibrahim said, adding that KDA has developed similar systems for neighbouring countries including Kenya, Ethiopia, Djibouti and South Sudan.

An increase in personal wealth and government services has another advantage: a reduced reliance on money sent from abroad, meaning it could dramatically reduce the financial burden on members of the Somali diaspora worldwide.

‘Gold mine’ of opportunity

The Canadian Black Chamber of Commerce says KDA’s venture highlights how Alberta is well-positioned to capitalize on business opportunities in Africa given the province’s rapidly growing population of African heritage.

“They know the potential, opportunities and environment — the needs and pain points,” said Kemi Bolatito-Bello, head of the chamber’s Edmonton chapter.

“Opportunities in Africa are a gold mine because the advancement of technology is still very, very small. It’s a very green space for those that want to go in early and invest.”

Bolatito-Bello herself has founded two businesses in Edmonton since immigrating from Nigeria with her family in 2015.

Her latest venture, Scooly — an AI global immigration marketplace that connects students and immigrants to legal visa  experts — was developed with the Alberta Catalyzer, a program for tech entrepreneurs.

Bolatito-Bello praised the efforts of the Alberta government to attract investment and open up the province to international opportunity, while investing heavily in the technology sector.

She hopes to see the province increase representation on the ground in Africa, to maximize business opportunities. She also wants the government to invest more in private companies so they don’t move elsewhere to access funding to expand.

She said doing business in Africa is a win-win scenario, fostering the development of African countries by providing well-paying jobs and transferring knowledge while also cutting the cost of labour for Albertan companies.

Alberta in Africa

Alberta’s trade with Africa in 2023 totalled nearly $859 million, Alberta’s minister of jobs, economy and trade, Matt Jones said in an emailed statement to CBC News.

Top export markets were Morocco at $156.3 million and Nigeria at $140.8 million.

Jones said between 2022 and 2023, Alberta’s exports to Africa increased by more than 38 percent and Alberta engages with more than 90 percent of African countries.

“We are working with Alberta’s various communities and their businesses to open new pathways for Alberta businesses in Africa,” Jones said.

“Alberta is actively engaging with markets in Africa by fostering trade partnerships and promoting investment opportunities through targeted missions and trade agreements.”