By Abdirahman Abshir
In a historic first of a kind, Somalia will hold its first ever International Investment Conference in its quest to rebuild and overcome its lost progress as a result of a three-decade long political and economic instability.
The country is strategically located in the Horn of Africa providing a gateway between the Indian Ocean and the Red Sea leading up to the Mediterranean. Moreover, Somalia has vast natural resources which create investment opportunities in the country across different sectors. To this end, the Somalia international investment conference taking place on the 28th and the 29th of November 2022, will provide a platform for the nation and the current administration to showcase investment opportunities.
The conference will also provide a glimpse into the existing industries in the country, investments towards general business activities to potential investors and to foster an overall climate of investment into the country. This conference is also intended to engage both the private sector and the federal government to engage potential investors interested in a country that is on its path to socio-economic and political recovery.
This first-of-a-kind conference in the country will complement the current economic progress in the nation by providing a much-needed critical assessment of this progress and the investment opportunities that this progress creates. The conference will take place over a course of two days with many parties present across different sectors including Somali government officials, Somali business representatives and foreign business representatives.
Currently, major projects are sprouting up all over Somalia hence creating a potent atmosphere that is in dire need of investment in all sectors. Additionally, Somalia’s industries at present are largely underdeveloped or underinvested thus the need for this conference to kickstart these sectors. These sectors include the livestock market, fisheries industry, farming, energy, human capital in the country, technology, banking & finance, the service sector, transport and infrastructure in the country and lastly the manufacturing industry.
Additionally, the timing of this conference at this point in Somalia’s progress and growth is nothing short of impeccable. This is so because of the oil and gas potential in the energy sector in Somalia. Recently, Somalia signed an oil exploration agreement with the U.S. based company Coastline Exploration for seven offshore blocks out of the 247 blocks available in the country. This is a landmark step for the development of the country’s oil and gas sector and a promising future of eradicating the debilitating poverty that has plagued the country in recent history. This deal follows an earlier agreement made in February 2022 by the previous administration but has now been finalized by the current administration according to petroleum minister Abdirizak Omar Mohamed. This development in Somalia’s oil and gas sector provides a glimpse into the potential of investment in the country’s resources with Coastline Exploration Limited estimated to produce over 100,000 barrels a day if oil is found.
Other developments in Somalia complimenting this conference to further attract foreign investments include sustainable economic growth. Somalia’s economy has grown consistently at 3% over the last four years leading to a steady rise in disposable income. This has fostered local consumption in the country which is expanding opportunities for local production in agri-processing and fast-moving consumer goods (FMCGs).
Additionally, the invigorated investments and the ongoing port developments in Somalia with specific investments in port logistical infrastructure to realize Somalia’s role as a gateway for the African continent to Asia and beyond compliments the largest coastline in mainland Africa. These developments are all part of an emerging nation that is deepening stability and building international partner relationships across all sectors to ensure every possibility for a fresh start for the Somali nation.
The conference will accommodate over fifty speakers with keynote speakers including H.E. Hassan Sheikh Mohamud, Prime minister H.E. Hamza Abdi Barre, the Minister of Planning Hon. Mohamud Abdirahman (Beenebeene) and other key ministers. Hon. Beenebeene optimistically commenting on the conference invitingly stated that “This conference organized by the Somali investment promotion office, SOMINVEST, will be an ideal platform to engage our dynamic private sector, national priority sector, global key investors as well for potent and useful sectoral and industrial level discussions.’ He added that the Ministry of planning welcomes all parties to Mogadishu for the purpose of this conference to partake in this historic event for the Somali nation.”
Foreign Direct Investment (FDI) is key for a country like Somalia that seeks to integrate into the International Economic order to create long-lasting and sustainable economic growth. Somalia has also been keen on its accession into the World Trade Organization (WTO) since its application to the WTO Director-General in 2016. Since then, over 150 questions have been submitted to Somalia from WTO members to determine membership suitability of the nation. Consequently, conferences such as the Somalia International Investment Conference go a long way in integrating the country to the International economic order and the global world. To this end, the conference will include panel discussions on the international best practices for FDI in least developed countries like Somalia. Additionally, cognizant of the impacts of developments and investments in the energy sector, the newly created Ministry of Environment & Climate change will delve into the current opportunities and challenges facing the energy sector including the potential for renewable energy in Somalia.
Lastly, this conference takes place against the backdrop of an ongoing war against sworn enemies of the federal government that is the Al-Shabaab. Nonetheless, the hosting of this conference reflects a great deal of political settlement and resurgence in the current administration. Despite the short period of the current administration, great strides towards the overall security situation in the country have been made notably the reclaiming of lands from Al-Shabaab held by the group for over 15 years. Additionally, cognizant of the role of political stability for international investment, similar promising strides from the current administration include a modus operandi of consensus and accommodation between government players. This was a crucial element missing from the previous administration where dictatorial tendencies were prevalent as modus operandi of the administration. By contrast, the current administration has ushered in key elements indispensable to political stability by transforming the societal perception of statehood from political dictatorial tendencies to a state rooted in democracy and the rule of law.
