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With improved security, investors eyeing Somalia

Saturday February 09 2013

Somalia is becoming attractive to investors with two business conferences lined up for May and June in London and Nairobi respectively.

Sources close to the government of Somalia say improved security has enhanced investor confidence, including those seeking contracts in reconstruction in a country where infrastructure has been reduced to a bare minimum by over 20 years of war.

With resources like oil, minerals and a long coastline, Somalia is proving more attractive than even South Sudan, which has been bogged down by internal conflicts and persistent tensions between Juba and Khartoum.

In May, representatives from over 40 governments and other multi-lateral organisations will convene in London to discuss new approaches towards Somalia.

“We are seeing some significant political and security developments across the country — changes that offer great opportunities for long-term stability,” said Matt Baugh, the UK ambassador to Somalia based in Kenya. 

Mr Baugh added: “Our objective, is no different from the demands that ordinary Somalis and the new government are making — to partner with Somalia to help build a country that is stable, at peace with itself and its neighbours; where women and children are safe to walk the streets; where people can reclaim their lives, communities and businesses.”

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In June, there will be a follow-up investment conference in Nairobi to showcase opportunities that exist in the Horn of Africa nation.

The June 12 and 13 Somalia Investment Summit  is organised by Somalia Economic Forum  and produced by Global Event Partners. It is the official government-backed event for 2013 focusing on the abundant opportunities and exciting future ahead in the rebuilding of Somalia.

“Somalia’s political leadership has taken bold steps towards political stability, which is crucial for this country. It is evident that the structures for doing business in Somalia are slowly coming into play and the opportunities for rebuilding this great nation are many,” Hassan Dudde, managing director of Somalia Economic Forum, said in a statement issued in Nairobi.

“The Somali Investment Summit will showcase opportunities in energy, infrastructure, telecommunications, real estate, agriculture, fishing, education and health industries,” Mr Dudde added.

A number of investors have already expressed an interest in establishing businesses in Mogadishu, Somalia’s capital, following in the footsteps of Coca-Cola, Turkish Airlines, Africa Oil, Range Resources and SKA who have recently set up offices in the Horn of Africa nation.

READ: Investors ready to pump billions of dollars into calm Somaliland

“SIS will bring together 250 senior representatives from both government and private sector companies,” said Rob Percival from the co-organisers Global Event Partners Ltd.

Somalia, once one of Africa’s leading exporters of bananas and livestock, has been torn by two decades of civil strife, forcing agriculturally productive communities into displacement and exile.

A year after the 2011 famine, the Horn of Africa nation is now on the path to recovery thanks to timely interventions targeting herders and farmers in regions plagued by recurrent droughts.

The summit has been endorsed by the Eastern Africa Economic Chambers of Commerce, which lobbies for intra-Africa trade and sees Somalia as a strategic business partner for regional businesses.

SIS will provide a platform for ministries and Somali government departments to engage with international and local investors to showcase the abundant opportunities available in the country.

Participants will share knowledge, explore current challenges and examine the most prominent investment opportunities in Somalia.

By Fred Oluoch and Paul Redfern

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