Africa > East Africa > Somalia > Ready for business: Somalia to launch stock exchange in Kenya

Somalia: Ready for business: Somalia to launch stock exchange in Kenya

2012/09/09

War-torn Somalia is setting up a stock market to raise cash for fledging businesses, as the Horn of Africa country seeks to rebuild from over two decades of conflict, officials said Thursday.

"This will bring back confidence to the Somali people and show the international business community that Somalia is ready for business," said Idd Mohamed, a Somali diplomat and deputy representative to the United Countries.

"We have done much of the paperwork, and we hope that it will be operational in the next five to seven months," he said.

The proposed stock exchange would initially operate out of the Kenyan capital Nairobi, since Somalia is currently riven between rival clans, government troops, Islamist insurgents, pirates and some 17,000 African Union soldiers.

Peter Mwangi, who heads Nairobi's stock exchange, signed an agreement Wednesday with Mohamed to pave the way for the establishment of the new exchange.

The agreement tasks the Nairobi stock exchange with providing for the "technical development" of the next Somali bourse.

According to the World Bank, Somalia has seen significant private investment in commercial ventures, largely funded by remittances from Somalis living abroad.

Noting that Somalia receives up to $2 billion annually from the diaspora, Mohamed said that "with a well-built financial institution, the money will go a long way to improve the country's economy."

He said the exchange would serve as a bridge between Somalis and the world. "It will be open for investors from everywhere, local or international," he said.

Somalia's weak and corruption-ridden transitional government -- in power for eight years -- is due to be restored later this month via a UN-backed process in which elders will select new leaders.

Related Articles
  • Nobel Laureate Joseph Stiglitz Calls For New Strategy

    2017/10/19 Joseph Stiglitz has advised African nations to adopt coordinated strategy encompassing agriculture, manufacturing, mining, and service sectors to attain same success delivered by the old manufacturing export-led strategy. Prof. Stiglitz, an economist and professor at Columbia University, New York, gave the advice at the Babacar Ndiaye lecture series introduced by African Export-Import Bank (Afreximbank) which debuted in Washington D.C.
  • Ecobank launches mVisa across 33 African Countries

    2017/10/19 Ecobank Scan+Pay with mVisa delivers instant, fasten cashless payment for goods and services by allowing customers to scan a QR code on a smartphone or enter a incomparable merchant identifying code into either a feature phone or smartphone Ecobank (https://Ecobank.com) has partnered with Visa to launch Ecobank Scan+Pay with mVisa solutions to their consumers. The strategic tie-up signals interoperability on a cross border level – and potentially huge gains – as it affords consumers with the ability to use their mobile phone to due access the funds in their bank accounts to pay person-to-merchant (P2M) or person-to-person (P2P).
  • ‘Betting on Africa to Feed the World’

    2017/10/17 The president of the African Development Bank, Akinwumi Adesina, will deliver the Norman Borlaug Lecture on Monday 16 October as part of the World Food Prize events taking place from October 16 to 20, 2017 in Des Moines, Iowa, USA. The Norman Borlaug Lecture under the title: “Betting on Africa to Feed the World”, will be held on World Food Day, October 16, in conjunction with the annual World Food Prize celebration.
  • World Teacher’s day: Gov’t urged to improve teachers’ productivity

    2017/10/16 Cameroonian teachers nationwide have exhorted the Cameroonian government to empower teachers with the requisite tools to be able to deliver their best in the present fast-paced world. While commemorating the 23rd edition of world teacher’s day today, the teachers noted that the theme for this year’s celebration, “Teaching in Freedom, Empowering Teachers,” reaffirms that peace and security are needed for the development of any country.
  • Africa's Economic Future Depends on Its Farms

    2017/10/16 At the same time as the economies of Nigeria and South Africa recently rebounded, it wasn't oil or minerals that did the trick. It was agriculture. Faster and additional sustainable agricultural increase is crucial not only to the continent's economy, but as well to its ability to feed and employ its surging people. Agriculture still accounts for a quarter of gross domestic product and as much as two-thirds of employment in sub-Saharan Africa. In fact, agricultural increase has the biggest impact on non-farm gain and reducing poverty.