Wednesday, July 31, 2013
The foreign investment bill now in front of the Somali parliament's
commerce committee carries the hope of attracting international
companies to help re-build the country, create new jobs and further
develop the economy.
The bill outlines a framework for foreign investment in Somalia to
safeguard the rights of foreign nationals investing in the country and
establish a favourable trade environment based on a free market economy,
said Somali Ministry of Commerce and Industry Director General
Abdullahi Duale.
"We hope that within this year, when this bill passes, the country
will see changes in investment such as re-opening factories and
[opening] new ones in the country, rebuilding old factories and
producing marine and agricultural resources," he told Sabahi. "These
opportunities will be an advantage for us and foreign nationals who want
to invest in our country."
The Somali cabinet has already approved the bill. "For obvious
reasons, we have been starved for foreign investment for decades," Prime
Minister Abdi Farah Shirdon said when signing the bill June 10th.
"Anyone looking at our economy today knows how much we need it in all
sectors. Investors need a secure legal framework and that is what we
will provide."
Duale said he expected lawmakers to debate the proposed law within
the next two months before the parliamentary recess. "It is a good
opportunity if parliament passes it at a time when an increasing number
of foreign investment proposals are reaching parliament," he said.
On July 25th, the parliamentary commerce committee held a hearing to
consult with stakeholders and members of the public before the bill is
presented to the entire chamber.
Somali Chamber of Commerce Deputy Chairman Abdirashid Aynanshe, who
testified at the hearing, said in order to guarantee protections for
investors the bill should not be rushed but approached with caution.
"In my opinion, this bill should be given additional time for
consideration," he told the committee. "It should also be one that
reflects the interests [of stakeholders] and meets its intended goal,
and should lead to economic development."
Young people hope investment brings jobs
Muse Ahmed, a 28-year-old management and commerce graduate of
Mogadishu University, said unemployed youth hope the bill would help
reduce unemployment in Somalia by developing untapped industries.
"We do not have abundant resources in our
country, but we have to open up opportunities to foreign people who want
to invest in Somalia so that we can show them that we can mutually
benefit from our country's resources," he said.
Mariam Hassan, 27, a Mogadishu resident who studied project
management at Utara University in Malaysia, said Somalia has an
abundance of opportunities to be exploited.
"[This is] a country that is rich in marine and agricultural
resources," she told Sabahi. "If we get investment from international
companies in developed nations, I would say it is an encouraging
development. We are aware of the global interest in Somalia today as a
country that is recovering from the instability of more than 20 years."
Hassan Salah, 28, studied commerce at the University of Nairobi. He
said foreign investment would lead to factories setting up shop in
Somalia, which would greatly benefit all citizens.
"The advantages to Somalia will include the establishment of
production factories that will eliminate the need to import everything
from abroad, and it will not cost the same," said Salah, who works for
the UN Food and Agriculture Organisation in Mogadishu.
It is essential to consult global experts about the proposed law so
that the public can gain the most from it, he said, adding that he is
hopeful about oil exploration in Somalia.
"The companies that are currently drilling for oil in Kenya, such as
the Japanese companies, will get 10% of the profits and it is an
agreement that will last for 10 years, after which Kenya will own all
the profits," he said. "Somalia has to accept such deals, if it can get
them, and it has to be wary of one-sided agreements that will greatly
benefit one side over the other."