http://sabahionline.com/en_GB/articles/ ... feature-01The 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."
