WorldRemit Chair, Ahmed on how to improve investment flows to Somaliland

Somaliland, a nation striving for recognition on the international stage, is set to receive a significant boost in investment thanks to the commitment of Ismail Ahmed, the founder and chairman of World Remit. With a GDP of about $2 billion, heavily reliant on remittances from abroad, the country's economy is primarily focused on livestock and agriculture. In a recent interview with CNBC Africa, Ahmed unveiled his plans to launch the Samia Foundation, a program aimed at addressing Somaliland's most critical development challenges. This ambitious initiative will see Ahmed committing $5 billion of his own wealth and investments to fund development programs within the country, with a particular focus on sectors like education and health. Expressing his long-standing connection to Somaliland, Ahmed highlighted the urgent need for investment in key areas like health and education, which have been constrained due to the lack of recognition by the international community. By leveraging an entrepreneurial approach and innovative technology, Ahmed aims to make a tangible difference in these underserved sectors. Emphasizing his personal involvement in the foundation's activities, Ahmed indicated that the initiative would work in collaboration with the government and other partners, drawing on his extensive experience in the fintech industry to address pressing challenges effectively. In the face of limited international aid and negative perceptions of investment in Somaliland, Ahmed remains optimistic about the potential for transformative impact through strategic investments. Citing the example of a recent $400 million investment in Somaliland that generated significant returns, Ahmed underscored the value of targeted investments over traditional aid programs. He criticized alarmist messages from aid agencies that often deter investors, pointing to the misrepresentation of data during the COVID-19 pandemic as a prime example. Despite these challenges, Ahmed highlighted the resilience of remittances to Africa, noting a substantial increase in flows to countries like Somaliland and Kenya amidst the global crisis. Acknowledging the government's efforts to attract investment and spur economic activity, Ahmed commended Somaliland's welcoming stance towards investors. He emphasized the importance of fostering a conducive environment for private sector growth, drawing parallels with the successful development models of countries like Rwanda and Kenya. By prioritizing investment over reliance on aid agencies, governments can catalyze sustainable development and drive economic progress in the region. Looking ahead, Ahmed reiterated his commitment to supporting the health sector in Somaliland, particularly in light of the pandemic's impact. Drawing from his experience in facilitating COVID-19 response initiatives, Ahmed pledged to provide essential support such as PPE equipment and testing facilities to bolster the country's healthcare infrastructure. With a track record of delivering timely interventions and leveraging technology for social impact, Ahmed's vision for Somaliland's development embodies a blend of financial acumen and social responsibility. As the country seeks to carve out a distinct identity on the global stage, Ahmed's unwavering commitment to catalyzing positive change through strategic investments serves as a beacon of hope for the nation's future.