Diplomat to start Somalia’s first stock market

[Executive]

Diplomat to start Somalia’s first stock market

NAIROBI, Aug 8 (Reuters) - A Somali diplomat wants to start the Horn of Africa's first ever stock exchange in neighbouring Kenya and he expects telecom, banking and money transfer firms that have defied decades of conflict to list their shares on the bourse.

"Somalis are very enterprising people ... and they want to join other east Africans that have working stock exchanges," said Idd Mohamed, Ambassador extraordinary and deputy permanent representative to the United Nations.

"Initially the exchange will be based in Nairobi, but if the situation improves we could move it to Mogadishu."

Firms that have continued to thrive in Somalia include Hormuud Telecom, a private company which is well known even beyond Somali borders.

Mohamed, who founded the Somalia Stock Exchange Investment Corporation (SSE) with others, said he expected the bourse to attract both Somali-owned companies and international firms wishing to invest in the largely Muslim country and help rebuild it.

He was speaking at the signing of an agreement with the Nairobi Securities Exchange (NSE) for provision of expertise and support in the formation and development of the SSE.

"We are happy to assist them as we have assisted other countries like Rwanda. We hope we will be able to help them come up with sharia compliant sukuk bonds and halal equities," said Peter Mwangi, the chief executive of the NSE.

Islamic sharia law forbids investments that pay interest or those made in certain companies such as brewers or gambling firms.

Together with Somali government soldiers, African Union troops who are battling the Islamist al Shabaab militants have made significant progress over the past year, bringing in a measure of normality to the capital and other parts of Somalia.

Those gains by the government and African forces, which followed many hard battles, have prompted nations like Turkey to re-open their embassies in Mogadishu.

Regional firms, including banks in east Africa's largest economy Kenya, hope to follow in their footsteps when peace is fully attained.

If those companies do eventually move in, they will join a bunch of oil explorers, who are already active in the semi-autonomous region of Puntland.

Somalia has no formal banking sector and its people rely heavily on money transfers, estimated to be over $2 billion annually, from diaspora communities in Europe, North America and the United Arab Emirates. (Reporting by Kevin Mwanza; Writing by Duncan Miriri; Editing by Jon Loades-Carter)

http://uk.reuters.com/article/2012/08/0 ... 1J20120808

[The`Republic]

[Executive]

Guess who the diplomat is?

Ambassador Idd Mohamed (left) and deputy permanent representative of Somalia to the United Nations with Nairobi Securities Exchange CEO Peter Mwangi during the signing a memorandum of understanding with the Somalia Stock Exchange Investment Corporation (SSE) to set up a stock market on August 8, 2012.

[qoraxeey]

isnt stock market haraam???

[The-Screw]

I want to say that this looks promising but i am very skeptical. We'll just have to wait and see for now.

[Executive]

qoraxeey

no its not, only companies who are sharia complaint will be able to trade on the proposed stock exchange....no qamri, pornography, gambling, riba, etc

[AbdiWahab252]

Executive,

AY's stoolie and fellow who was picking fights at the Starbucks in VA,


By the way, he got arrested by your Abti, Dr. Elmi for trying to take his job.

[The`Republic]

No it is not very promising at all. Having a stock is one thing, making it work and be successful is one thing. Somalia hasn't even ratified a permenant constitution and is barely out of transition. Beyond that Somalia produces nothing and is totally dependent on international aid. I am not talking about petty trade. Somalia has no serious industries.

It is way behind having the basic foundations to have a stock. These people have a wrong idea of getting rich from Somalia and will try to outdo each other in time consuming unsuccessful enterprises they see from more developed countries.

[eliteSomali]

Diplomat to start Somalia’s first stock market

NAIROBI, Aug 8 (Reuters) - A Somali diplomat wants to start the Horn of Africa's first ever stock exchange in neighbouring Kenya and he expects telecom, banking and money transfer firms that have defied decades of conflict to list their shares on the bourse.

"Somalis are very enterprising people ... and they want to join other east Africans that have working stock exchanges," said Idd Mohamed, Ambassador extraordinary and deputy permanent representative to the United Nations.

"Initially the exchange will be based in Nairobi, but if the situation improves we could move it to Mogadishu."

Firms that have continued to thrive in Somalia include Hormuud Telecom, a private company which is well known even beyond Somali borders.

Mohamed, who founded the Somalia Stock Exchange Investment Corporation (SSE) with others, said he expected the bourse to attract both Somali-owned companies and international firms wishing to invest in the largely Muslim country and help rebuild it.

He was speaking at the signing of an agreement with the Nairobi Securities Exchange (NSE) for provision of expertise and support in the formation and development of the SSE.

"We are happy to assist them as we have assisted other countries like Rwanda. We hope we will be able to help them come up with sharia compliant sukuk bonds and halal equities," said Peter Mwangi, the chief executive of the NSE.

Islamic sharia law forbids investments that pay interest or those made in certain companies such as brewers or gambling firms.

Together with Somali government soldiers, African Union troops who are battling the Islamist al Shabaab militants have made significant progress over the past year, bringing in a measure of normality to the capital and other parts of Somalia.

Those gains by the government and African forces, which followed many hard battles, have prompted nations like Turkey to re-open their embassies in Mogadishu.

Regional firms, including banks in east Africa's largest economy Kenya, hope to follow in their footsteps when peace is fully attained.

If those companies do eventually move in, they will join a bunch of oil explorers, who are already active in the semi-autonomous region of Puntland.

Somalia has no formal banking sector and its people rely heavily on money transfers, estimated to be over $2 billion annually, from diaspora communities in Europe, North America and the United Arab Emirates. (Reporting by Kevin Mwanza; Writing by Duncan Miriri; Editing by Jon Loades-Carter)

http://uk.reuters.com/article/2012/08/0 ... 1J20120808

[Executive]

Abdiwahab

Really, He also got kicked out of UN in NY by Abdikarim Jama, he told secuirty that he doesn't work for Somalia. My question is how is this gonna be financed? and does this guy have $$$??



The Republic.

Some African countries had stock markets before even becoming independent countries. It could work, we already have big Telecom and Xawalado with 1000s of shareholders. But I get your point, there is need for regulations as well and a change in business culture.

[AbdiWahab252]

Exec,

He is a dream peddler The thing that would make a ton of cash would be an international bank setting up shop in Somalia. Imagine if Barclays or Standard Chartered set up a branch there. That bank would corner the LoC, and Diaspora markets.

[blackstars25]

this is way too soon, there is no legal system in place to regulate corporations yet alone financial markets. they should focus on small business, maybe in 10 years once these businesses grow and the state has control will stock markets be of any benefit. anyway there is no point of having a stock market where the biggest company is worth less than 100mil. this is diplomatic resource put to waste. they should focus eliminating al-shabab and expanding control of the country.