Upcoming EventsApr24Monall-day 3rd Congo International Hydrocar... @ The Palais des Congres, Brazzaville3rd Congo International Hydrocar... @ The Palais des Congres, BrazzavilleApr 24 – Apr 26 all-dayOn behalf of the Ministry of Hydrocarbons, Republic of Congo & AME Trade Ltd, we are delighted to welcome you to the Republic of Congo’s Third International Oil and Gas Conference and Exhibition (CIEHC-3). CIEHC will take place at the … Continue reading →May9Tueall-day East Africa Trade & Commodity Fi... @ Windsor Golf Hotel & Country Club , NairobiEast Africa Trade & Commodity Fi... @ Windsor Golf Hotel & Country Club , NairobiMay 9 – May 10 all-dayShareMay16Tueall-day SWIFT African Regional ConferenceSWIFT African Regional ConferenceMay 16 – May 18 all-dayInnotribe is also active across the African continent with the Innotribe Startup Challenge for Africa. The Startup Challenge has become one of the leading global startup competitions, connecting the financial services industry with more than 650 FinTech startups around the … Continue reading →May26Friall-day The Big 5 Heavy @ Dubai World Trade CentreThe Big 5 Heavy @ Dubai World Trade CentreMay 26 – May 28 all-dayShareMay29Monall-day INFRA EAST AFRICA EXHIBITION @ Kenyatta International Exhibition Center, Nairobi, KenyaINFRA EAST AFRICA EXHIBITION @ Kenyatta International Exhibition Center, Nairobi, KenyaMay 29 – May 31 all-dayShare
Category Archives: Somaliland
Somaliland has in abundance investable natural resources such as minerals, oil, marine resources, frankincense, livestock, and various other raw materials.
Innovate Ventures (Innovate.so) is running for a second year their highly successful tech start-up accelerator – The Innovate Accelerator. Launched in partnership with VC4A (https://VC4A.com), Telesom and Oxfam as part of Work in Progress! project, Innovate Accelerator saw over 180 applications submitted for last year’s inaugural cohort.
The private sector is the backbone of Somaliland economy and the biggest employment generator. However, it has inherent limitations which limit its potential to expand and pool together capital in the form of shareholding. The Majority of Somaliland businesses are sole proprietorship, family owned and partnerships. There are few shareholding companies, who operate on the basis of mutual trust rather than systematic corporate governance frameworks where the rights of shareholders are protected. It is time that Somaliland private sector should operate in a formal framework where operations and investment are not only done on individual trust and clan linkages but internationally accepted formal corporate governance frameworks.
Piracy in the Gulf of Aden and Indian Ocean started in 2005 by Somalia pirates and reached its climax in 2011 when they have attempted to hijack 237 vessels and at year’s end, seized 11 vessels, keeping a total of 216 people as hostages. At the time pirates used to make on average 2 million dollars for every ship seized and ransomed.
By Mohamed Ahmed Abdi Ba’alul.
No one thinks that he would live enough to see when our peace-makers turn in to trouble-makers. The upper house of parliament, has no longer most privileged members, or engaged in its hot debates on issues affecting the lives of ordinary citizens. It’s effective, peace-making dispatches to remote hinterlands are not visible in the headlines, despite of recurring inter-clan hostilities. If they were once the symbol of security, consensus, and the glue that holds Somaliland together, today the reality tells you a different story.
Somalia has marked important milestones in rebuilding its economy and normalizing relations with international financial institutions, over the past five years. However, IMF’s 2016 IV consultation shows that impact of drought in Somalia will decelerate its economic growth from 3.4 percent to 2.5 percent.
According to the World Bank; Promoting a well-functioning, competitive private sectors is a major undertaking for any government, especially for one with limited resources and technical capabilities.
Somaliland is a small nation in the Horn of Africa with a population of around four million inhabitants. Its economy is dependant on Diaspora remittance and livestock export to the Arab gulf countries. It has an infancy stage banking and financial services industry dominated by remittance business. As a result of anti money laundering regulations in the remittance originating countries in North America and Europe, remmitance lifeline to Somaliland is always at risk of disruption unless local regulatory environment and anti money laundering fighting mechanisms are installed and applied rigorously.
Written by Mohammed Dahir Ahmed
One of the somber challenges faced by Somaliland private sector is access to finance regardless of its form-Islamic or conventional. In a survey done by the World Bank, 48.8 percent of the firms surveyed in Somaliland indicated that access to finance as the number one constraint as far as doing business is concerned compared to a world wide average of 16.9 percent. It is a well documented fact that access to finance creates innovaton, job creation and growth. In Somaliland, formal and regulated financial services are almost non-existent, neverthless informal and unregulated financial services exist.
In Somaliland, the small and medium enterprise (SME) sector is the biggest income and employment generator. It hosts thousands of people and is the largest business sector. SMEs that trade in clothes, food, agricultural products, consumables, gold, beverages and fruits are visible on the streets of every city and town of Somaliland. And these traders support families who may find it difficult to get alternative sources of income.
The financial services sector in Somaliland is presently dominated by the remittance business, which offers such services as well as checking accounts. However, several banks have obtained licenses from the Somaliland Central Bank, under the Islamic Banking Act.