Somalia offers real investment opportunities as the country becomes more stable and rebuilds its economy with a context of vibrant and dynamic private sector. The economy is increasingly transitioning from traditional, rural pastoralism to urban, trade and services. Somalia’s economy has remained resilient despite recurrent climate shocks, including drought affecting agriculture. Driven by increased confidence in the economy, implemented reforms and political stability, the economy is forecast to grow by 3.2% in 2020, up from 2.9% in 2019.
Resilient Business Community
Somalia’s business community is resilient, globally-connected, and entrepreneurial; its technology offers high rates of mobile money penetration, and new opportunities from the Horn of Africa economic cooperation and integration play to the country’s advantage. There have also been substantial investments already made through remittance flow by the Somali diaspora in the construction and service sectors. It is estimated that a minimum of US$1.3 billion is remitted annually to Somalia by diaspora and this accounts for around 23% of Somalia’s Gross National Product (GNP) and 80% of foreign direct investment (FDI) in the country.
The rapidly improving economic environment and investment climate, in particular, offer real opportunities across the sectors of the economy. Somalia has recently reached the HIPC Decision Point thanks to sustained economic policy reforms under the guidance of the World Bank and the IMF. The country is now in a position to unlock international financing for development, paving the way for re-engagement with international creditors. There are therefore ample investment and business opportunities across the economic sectors from agriculture, infrastructure, natural resource and finance through to manufacturing and services.
Agribusiness Solutions Hub has been working with both the public and private sectors for the past four years and can support investors and businesses seeking opportunities and partnerships in Somalia.
A leading consultancy firm providing agricultural and analytical services to agriculture and food industry and policymakers in the Horn of Africa
00 252 63 3221141
Mansoor area, Jigjiga Yar, Hargeisa.
Zoobe Area, Mogadishu.