Somalia urged to create a legal framework for investment - CNBC Africa

Somalia urged to create a legal framework for investment

East Africa

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Hassan Al Hashimi, H.E Said Ali Korshel and H.E Ali Ghedi at the Somalia Investment Summit. PHOTO: APO

Somalia’s government reassured the business community that efforts were being done to ensure the security of investment in the region.

“Investors need to know where and how to invest, when to take out their money and who to go to if there is a dispute. Africa must become better in establishing this clarity,” Mohamed Elgatit – Hogan Lovells, a Somalian legal practitioner said at the second Somalia Investment Summit in Dubai.

Speakers at the summit comprised of Somalian business leaders, government officials and international businesses representatives.

(WATCH VIDEO: Political and security realities in Somalia part 1 and part 2)

Most officials however gave a clear indication that Somalia was heading towards a path of recovery.

H.E Said Ali Korshel, Somalia’s minister of transport and civil aviation, stated that the summit shows that Somalia is getting heading back to a normal state.

“Rebuilding the State of Somalia is our key priority and investment is what our country needs, this summit shows that Somalia is getting back to its normality,” he said.

Hassan Dudde, managing director of the Somali Economic Forum added that his organisation was committed to driving foreign direct investment to Somlia and that the summit was a clear indication of these efforts. He also stated that over 70 firms attended the forum and was quite pleased with the level of interaction.

Hassan Al Hashimi, vice president of Dubai Chambers of Commerce also highlighted that trade between Dubai and Somalia is on the rise, furthering security stability in Somalia.

In 2013, trade between the two countries totalled 1.3 billion US dollars.

PTA Bank, the trade and development bank of Eastern and Southern Africa, explained that their commitment to lifting sanctions against Somalia was also a clear indication in Somali’s increasing stability.

The country’s finance sector has begun to thrive, with interest by financial institutions on the rise.

(READ MORE: Somalia in need of short term remittance solutions)

Institutions such as Dahabshiil Bank are planning to open up new banks across the region, and IBS investment bank recently launched micro finance banking to target the country’s rural farmers, traders and fishing community.

(WATCH VIDEO: Dahabshiil wins injunction to keep money flowing to Somalia)