Mogadishu: East Africa’s newest business destination?

[TheblueNwhite]

NAIROBI — Somalia’s capital Mogadishu is emerging as the newest business destination in east Africa. New businesses have sprung up in 2012 as investors’ confidence in the country improves. Some business people argue that Somalia’s 20 years of turmoil are coming to an end, opening up endless opportunities.

Though security has been a big issue in Somalia, the situation has improved. Since Kenyan forces launched an onslaught on al-Shabaab in retaliation to the kidnapping of tourists on Kenyan soil, the militant group has lost its stronghold in towns like Mogadishu and Afmadow. Reports indicate that Kenyan troops and the African Union force in Somalia, known as AMISOM, are also close to recapturing the strategic port of Kismayo.

Mogadishu is losing the dreaded “world’s most dangerous city” tag and embassies are reopening as countries mend diplomatic ties severed almost 20 years ago.

The Somali diaspora community has also began coming back home to rebuild the country. In May this year, First Somali Bank (FSB), a commercial bank championed by the diaspora community, opened its first branch in Mogadishu.

The bank estimates remittances to Somalia to be around US$2 billion every year.

“If you go to Somalia you will be surprised by the kind of construction going on in Mogadishu right now,” says Liban Egal, founder and chairman of FSB.

Stories such as that of Egal starting FSB and Mohamed Mahamoud Sheik, who recently returned from the diaspora to launch Mogadishu’s first dry cleaning business, have changed perceptions about ‘war-torn Somalia’.

Egal is grateful for the calm in Mogadishu as security improves.

“Our biggest risk is security. We hope the situation improves. If the country moves along the way it is, politically, even after the elections in August, that will be great,” says Egal.

The rebuilding of Somalia, he argues, presents enormous opportunities. He lists infrastructure, energy, agriculture, media, and retail as some of the sectors worth exploring.

“A country that is being rebuilt needs everything. Electricity for instance is very expensive … Basic infrastructure is also lacking,” he says.

Entrepreneurial nation

Lino Carcoforo, an Italian-Somali entrepreneur behind Innovation for Africa, an early stage investment fund focused on mobile phone based technology startups in east Africa, marvels at the enterprising spirit of the Somali people.

The Somali populated Eastleigh area in Nairobi has become the commercial hub of Kenya’s capital. Somali entrepreneurs are credited for the transformation of the residential area to a mini-city nicknamed Mogadishu ndogo (Swahili for ‘small Mogadishu’).

“If Somalis can replicate what they have done in Eastleigh, imagine the impact it would have. They will create numerous jobs and build the economy. There is not a doubt that the Somali people are enterprising. In Mogadishu, it is demand that will drive businesses,” says Carcoforo.

Carcoforo’s fund is hoping to make investments in Somalia in the future.

He is optimistic that Somalia could develop faster than other markets in the continent. He points out that while other countries have been successful in mobile money transfer, Somalia is a step ahead with mobile payments for purchases of services and goods.

The greater the destruction, the better the boom

This May, Egal organised TEDx Mogadishu, an event themed ‘Rebirth’, bringing together the Somali diaspora community and local and foreign investors to share ideas on rebuilding the capital.

The event, he says, helped change the perceptions about Mogadishu and showed that the city is open for business.

“It is a once in lifetime opportunity to see a country being rebuilt. We have seen it in Rwanda and Sierra Leone. Every time that happens it brings great opportunities … When a country has the kind of destruction Somalia has had, a boom follows. The opportunities are limitless,” says Egal

Egal and Carcoforo reckon that the greater the destruction the better the boom, and that is why investors should be heading to Somalia.

It seems like Somalia has sunk so low, it can only go up from here.

SomalilandPress

How We Made In Africa

June 21, 2012

[FarhanYare]

NAIROBI — Somalia’s capital Mogadishu is emerging as the newest business destination in east Africa. New businesses have sprung up in 2012 as investors’ confidence in the country improves. Some business people argue that Somalia’s 20 years of turmoil are coming to an end, opening up endless opportunities.
Though security has been a big issue in Somalia, the situation has improved. Since Kenyan forces launched an onslaught on al-Shabaab in retaliation to the kidnapping of tourists on Kenyan soil, the militant group has lost its stronghold in towns like Mogadishu and Afmadow. Reports indicate that Kenyan troops and the African Union force in Somalia, known as AMISOM, are also close to recapturing the strategic port of Kismayo.

Mogadishu is losing the dreaded “world’s most dangerous city” tag and embassies are reopening as countries mend diplomatic ties severed almost 20 years ago.

The Somali diaspora community has also began coming back home to rebuild the country. In May this year, First Somali Bank (FSB), a commercial bank championed by the diaspora community, opened its first branch in Mogadishu.

The bank estimates remittances to Somalia to be around US$2 billion every year.

“If you go to Somalia you will be surprised by the kind of construction going on in Mogadishu right now,” says Liban Egal, founder and chairman of FSB.

Stories such as that of Egal starting FSB and Mohamed Mahamoud Sheik, who recently returned from the diaspora to launch Mogadishu’s first dry cleaning business, have changed perceptions about ‘war-torn Somalia’.

Egal is grateful for the calm in Mogadishu as security improves.

“Our biggest risk is security. We hope the situation improves. If the country moves along the way it is, politically, even after the elections in August, that will be great,” says Egal.

The rebuilding of Somalia, he argues, presents enormous opportunities. He lists infrastructure, energy, agriculture, media, and retail as some of the sectors worth exploring.

“A country that is being rebuilt needs everything. Electricity for instance is very expensive … Basic infrastructure is also lacking,” he says.

Entrepreneurial nation

Lino Carcoforo, an Italian-Somali entrepreneur behind Innovation for Africa, an early stage investment fund focused on mobile phone based technology startups in east Africa, marvels at the enterprising spirit of the Somali people.

The Somali populated Eastleigh area in Nairobi has become the commercial hub of Kenya’s capital. Somali entrepreneurs are credited for the transformation of the residential area to a mini-city nicknamed Mogadishu ndogo (Swahili for ‘small Mogadishu’).

“If Somalis can replicate what they have done in Eastleigh, imagine the impact it would have. They will create numerous jobs and build the economy. There is not a doubt that the Somali people are enterprising. In Mogadishu, it is demand that will drive businesses,” says Carcoforo.

Carcoforo’s fund is hoping to make investments in Somalia in the future.

He is optimistic that Somalia could develop faster than other markets in the continent. He points out that while other countries have been successful in mobile money transfer, Somalia is a step ahead with mobile payments for purchases of services and goods.

The greater the destruction, the better the boom

This May, Egal organised TEDx Mogadishu, an event themed ‘Rebirth’, bringing together the Somali diaspora community and local and foreign investors to share ideas on rebuilding the capital.

The event, he says, helped change the perceptions about Mogadishu and showed that the city is open for business.

“It is a once in lifetime opportunity to see a country being rebuilt. We have seen it in Rwanda and Sierra Leone. Every time that happens it brings great opportunities … When a country has the kind of destruction Somalia has had, a boom follows. The opportunities are limitless,” says Egal

Egal and Carcoforo reckon that the greater the destruction the better the boom, and that is why investors should be heading to Somalia.

It seems like Somalia has sunk so low, it can only go up from here.

SomalilandPress

How We Made In Africa

June 21, 2012

i dont think so

[Somaliman50]

commerce is on the up, good to hear. blue when you joining your fam at the docklands? i remember you saying something about an export business

[VeiledGarbasar]

Amo cabsaa? ^^

Business always goes in Mogadishu, but if we want to see greater investment & more affluent diaspora the security in Mogadishu needs to improve vastly! It is good now, but there needs to be more polishing.

. They need to do cash for weapons initiative. That way people are willing to give their weapons.

. More training for the police.

. A large prison attended by Amisom (Because Somalis are Wuss and only behave when they are dealt by dadka kalo, case in point AlCoo-Coo )

Other then that Alhamdulilah for the two PP's!!!! Peace & Progress.

[grandpakhalif]

VeiledGarbasaar,

I have a couple questions for you.

When you were in Somalia and visited areas under Al shabab control, what negative aspects of their *law and order* did you not appreciate? Is the ban on wearing bras true? How did they treat women?

[VeiledGarbasar]

I did not come across much negativity, and for the most part they are not 'tigger-happy.' But under them you are controlled FULL-STOP, and should they be upset with you, waa kaas for you. So, I did not appreciate that 'fear' 24/7, things like we can't even be laughing and joking around at night loud. If they catch you without the proper attire you might be imprisoned and goodness knows what else. (affects women) Another thing, they do approach girls for marriage & say we are mujahids and don't need your families permission, it happened to my cousins daughter, she got away though. Alhamdulilah. Hence why the females in my family all wear niqaab, and I wore one too.

Ruunti, they are no good, they are WAY too harsh, and we are only killing Somalis....there is no point to this war, and our constant division as Somalis. It is just sad.

I'm not too sure about the bra thing, it might have been fake. Although they might have banned padded bra's?

[grandpakhalif]

Thanks for your time, veiled if only Al shabab had rahmah and TFG were less corrupt, we would have true law and order.

[TheblueNwhite]

commerce is on the up, good to hear. blue when you joining your fam at the docklands? i remember you saying something about an export business

Bruv, I got get my licence first, I failed the first time, came close but no cigar. Will be following my grandpa's footsteps insha Allah.

[BlackVelvet]

Show me the money waaye sheekada, do your thing

[AbdiWahab252]

Veiled,

Abayo, do you believe the hype that we have turned the corner ? I don't. What is happening in Mogadishu is like Kabul in 2003. Unless a government of the people, by the people and most importantly consists of a military force under unified government control not under qabiil/warlord control is formed, these gains will be wiped out.

Going to Xamar, I saw the XDS. Its not a professional army. There are no accurate enlistment rolls. They are not paid well or regularly. Their commanders are corrupt. If they are injured, they become dawaca Beesha XXX. They are not under a single command but swear loyalty to faction leaders, qabiil leaders etc. The leadership command is divided along the 4.5 formula and not experience. The only thing that keeps the TFG in power are AMISOM.

So unless, we depose Sharif Ahmed, Sharif Xasan, Abdiweli and get new leaders who are educated professionals with strong experience, things will remain status quo. Farmaajo had it right when he ensured that the civil service, military and police got paid on time. He knew that government works, if its staff receive regular pay and not.

All in all, I am applauding the demise of Al Shabab but if the TFG fails to produce a government that can rule justly and effectively, the TFG will lose these gains.