Invest in Somalia

Somalia is actively developing investment opportunities and injecting more capital into the economy, which shows a positive change for the future. These actions are in line with an official World Bank statement which states that Somalia’s economy has recovered after several years of recession with an impressive growth rate of around 3%. Despite the difficult situation and problems facing the country, Somalia’s economic indicators show a growth of 2.9% in 2021.

The positive trend continues as the World Bank predicts a big success for the economy of Somalia in its latest report. Gross domestic product (GDP) will grow by 3.6% in 2023 and is expected to increase to 3.7% in 2024, indicating hope and greater opportunities for the Somali people.  Surprisingly, Somalia has one of the highest internet penetration rates in the country. This increase in Internet connectivity makes Somalia an attractive location for online businesses and investments in a knowledge-based economy.

As part of its trade policy, Somalia has entered into a number of bilateral and multilateral trade agreements. In particular, it is a member of the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA). In addition, Somalia actively participates in various trade agreements and benefits from trade promotion programs.

Entrepreneurs looking to do business in Somalia can explore a variety of sectors that promise great returns. These sectors include energy, financial services, information and communications technology (ICT), agriculture, manufacturing, construction, real estate, construction and tourism. This breadth of investment opportunities makes Somalia an attractive destination for those seeking access to economic potential.

In fact, Somalia offers attractive investment opportunities characterised by a number of comparative advantages that attract foreign investors to provide capital for major projects on Somali soil. The most important of these incentives is the Investment Law, which promotes investment and creates a favourable environment for economic growth and development through various facilities and incentives offered.

Somalia’s unique strategic geographic position makes it a key gateway to the Horn of Africa, located at the junction of the Red Sea and Indian Ocean regions. Somalia, near the Gulf of Bab al-Mandab, where Asia and Africa meet, plays an important role in monitoring a large outflow of water. This area not only controls one of the world’s major sea routes connecting Europe and Asia, but also controls the Gulf of Aden and the Red Sea. Through the Bab al-Mandab Strait, Somalia connects the Arabian Sea and the Indian Ocean with the Pacific Ocean, confirming its importance in international maritime trade.

Somalia has a coastline of 3,333 km, the longest in Africa, a gift from God. This vast expansion not only gives Somalia dominion over the Gulf of Aden and the Indian Ocean, but also offers many investment prospects. Water resources, including abundant fishing stocks, logistics services and oil and gas exploration opportunities, undoubtedly position Somalia as a place for diverse and profitable investments.

Somalia’s geographical advantage, with its strategic location overlooking the most profitable fishing grounds, makes it a great opportunity for foreign investors. The seas around Somalia are some of the richest in the world, home to a variety of fish such as mango, tuna and sardines. Despite the abundance of these resources, Somalia’s actual catch is less than 2,000 tons of fish, 450 tons of trout, 100 tons of shark and 20 tons of shrimp, according to the UN. With an estimated 300,000 tonnes of fish and 10,000 tonnes of crustaceans, this diversity shows great untapped opportunities in the sector.

Investment prospects are broader than the fishing industry, including shipbuilding, netting and cold storage, as well as processing, canning and marketing of fish. This shows the great potential of foreign investors to exploit a wide range of activities in Somalia’s maritime industry.

Somalia has millions of livestock, including goats, camels and cattle, making it one of the main suppliers of food for the region, the region and the world. However, realising its full potential will require significant investment to strengthen and develop the sector and leverage its unique strengths.

Investment opportunities in this sector range from animal breeding and management to meat and milk production and development. Strategic investments can be traded outside of these products. In addition, entry into meat and canned meat production will not only increase profit margins but also contribute to increased national income. This approach is different from the traditional methods of simply buying and transporting live animals.

An important sector associated with this sector is the leather industry, which provides an important and valuable source of income. The use of leather in large industries increases the economic impact, creating the entire ecosystem and connectivity in the animal sector. To unlock the economic potential of Somali cattle, it is important to explore and invest in these different aspects of the industry to promote prosperity and economic growth.

The agricultural sector is the main economic sector that receives a lot of attention from economists and financiers. Somalia has a lot of fertile land, and with only 0.04% of the country currently under cultivation, there are high investment prospects for the sector. Utilising this underutilised land can provide you with great economic opportunities.

Recognizing the interdependence of agriculture and other economic sectors with water resources, water and sanitation programs are considered essential. Infrastructure development in these areas has become a priority for those looking for investment opportunities. Investing in water-related projects that serve the basic needs of agriculture and the wider economy can be a strategic vehicle for investors.

Somalia, which has a large amount of oil and gas resources on land and water, as well as ample opportunities for renewable energy sources, is affected by the nature of the import of the amount of energy. Despite these assets, the country is looking for investors to pave the way for huge economic benefits by harnessing its potential.

Important for the development of society is the development of the educational system, it is necessary to invest in schools, teaching staff and universities to produce highly qualified graduates in various professions. The education sector is emerging as a lucrative sector, promising huge returns for investors and society.

In addition to these sectors, other important sectors such as construction, roads and transport infrastructure require significant investments. These investments will benefit entrepreneurs and workers by facilitating access to commercial premises and simplifying travel. In fact, the potential of the tourism sector is largely overlooked, considering the natural wealth of Somalia and the natural beauty that the reserve can offer. Investment in the tourism and hospitality sector is an important economic opportunity.