Amid security challenges, Somalia’s which is recovering from decades of war is now showing signs of recovery, looking forward to overcome decades of conflict which entirely shattered the country’s economic infrastructures to offer wide range of investment opportunities.
Somalia’s capital has received a new thrust in recent years, thanks to the relative stability in the city following the ouster of Islamist militants in 2011, showing some indicators in business opportunities.
Foreign business entities and potential donors have since started showing appetite to invest in the horn of Africa nation now to exploit the untapped market’s on the backdrop of security concerns.
More than 50 investment experts, investors, business professionals including Somalis and practitioners have gathered at the Annual Investment Meeting in Dubai on Monday, discussing ways and means to attract investment from new streams coming from emerging markets.
“It was an opportunity to discuss about investing in emerging markets, and Somalia was among the key areas raised by some foreign companies and potential donors.” said Abubakar Mubarak, the executive manager of Royal Meats, a Dubai-based Somali meat company who attended the conference.
“Most of the investors have shown interest in investing in the fields of telecommunication, transportation, airports, ports, agriculture, fishing and livestock in Somalia.” He told HOL.
The development comes few months after Somalia’s Parliament approved the foreign investment law in November last year as the country’s economy which survived years of chaos still faces hurdles as result of lack of regulations and competitions.
In recent years, Somalia’s government has been trying to encourage direct foreign investments for the country, in spite of security threats by the Al-Qaeda linked Al Shabab group which continues deadly guerilla attacks across large parts of south and central Somalia.
According to the United Nations Development Programme (UNDP), as of 2012 Somalia had some of the lowest development indicators in the world, in addition to a “strikingly low” Human Development Index (HDI) value of 0.285.
This would rank the impoverished horn of Africa nation amongst the lowest in the world as result of “inequalities across different social groups.
Foreign companies have pulled out from Somalia in 1991 after warlords overthrew the central government, leading the destruction of state institutions and a deadly civil war.
Local private companies have since filled the void, creating thousands of jobs and helped the country to survive despite serious challenges including civil unrest and chaos.
