Doing business in a new market always presents numerous challenges. The main obstacle to major foreign direct investment has been on less peace and stability as well as its economic potentials. However, Somalia is telling the world ‘Doors of Business is open’ having progressed from a post-conflict situation to a state of political stability and sustainable economic development. Underpinned by this transformation, Somaliais now firmly in a period where it is able to encourage foreign investment.
Reasons to Invest Somalia:
Somalia have seen 20 years of Civil war, despite that, huge security have been made and now Somalia Government controls much of the country. Thanks to African Union Mission in Somalia and European Union had helped Somalia to build National Army to protect the population and Specail Forces to fight Terrorism and Orginized crime. With that achieved gives Somalia an space and groundwork for local and International ivnvestment.
Upcomming Regulatory Reforms
Somaliais reforming its commerce and Industry regulatory framework to better promote investment. The Minsiry of Commerce and Indusry has submitted laws and bylaws which deals business registration. Important legislation—such as the Foreign Direct Investment Law, the Telecommuncations Act, Labor Act, the Central Banking Law, the Electrical Energy Act, and the Commercial Banking Act and more—has either been passed or is making its way through Parliament.
Somalia is Located at the Eestern Horn of Africa, with access to the longest coastline country in africa with more than 3000 KM. With the north of the country which is one of the major global shipping lanes. Also could be transit point of container ships, cargo planes and industries. This means an optimized reach to almost every part of the globe.
Livestock, Fisheries and Agriculture
Somalia in 2014 exported a record five million livestock to markets in the Gulf of Arabia thanks to heavy investments in animal disease prevention backed by the European Union and the United Kingdom, the United Nations Food and Agriculture Organization (FAO) said today. The FAO data indicates that Somalia exported 4.6 million goats and sheep, 340,000 cattle and 77,000 camels in 2014, worth an estimated $360 million, and Expected to encrease.
With an acces to more than 3000 km of coastline, also with growing fishery industry, Somalia has more oppurtinity in fishing industry and is expected to grow.
Agriculture is the most important economic sector. It accounts for about 65% of the GDP and employs 65% of the workforce. Principal crop exports include bananas; sugar, sorghum and corn are products for the domestic market. According to the Central Bank of Somalia, imports of goods total about $460 million per year, and have recovered and even surpassed aggregate imports prior to the start of the civil war in 1991.
Principal crop exports include bananas; sugar, sorghum and corn are products for the domestic market. According to the Central Bank of Somalia, imports of goods total about $460 million per year, and have recovered and even surpassed aggregate imports prior to the start of the civil war in 1991
Somalia offers Somali telecommunication companies also provide services to every city, town and hamlet in Somalia. There are presently around 25 mainlines per 1,000 persons, and the local availability of telephone lines (tele-density) is higher than in neighboring countries; three times greater than in adjacent Ethiopia. Telecommunications services has been enhanced by the new fiber optic cables which are being laid to connect Somalia’s major cities and towns and establish links to the outside world. This new infrastructure will revolutionize the way in which business is done in Somalia and provide new opportunities, including support to the financial services sector. Although financial services are not robust, prospects for improvement are increasing. Other business development services (BDS) are also increasing, and this promises to save investors the trouble and expenses associated with bringing in expat labor to provide such services.
Other potential sectors for investment include tourism where your at the spot of equator of warm temprature with Hotels, Beaches, and with African culture, infrastructure and social sectors. With the support of right information, the people and government of Somalia are welcoming investors to come and see for themselves the unexplored and untapped opportunities that the country has to offer in all the sectors of its economy.