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Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 12:07 pm
by GeoSeven
Organized Market Image

Somalia's new bourse sees seven firms listing on opening in 2015
Kenya (Reuters) - The Somalia Stock Exchange expects seven companies in the telecoms, financial services and transport sectors to list their shares when the bourse is set up in 2015, its founder said.
Somalia's economy is slowly recovering from more than two decades of conflict, although the government is still battling an Islamist insurgency. Amid the chaos, some businesses have thrived, including money transfer and mobile phone firms.

"These are companies built by Somalis themselves and they have the potential to grow and attract international investment," Idd Mohamed, chairman of the Somalia bourse, told Reuters on Tuesday. He did not name the firms.

"The Somali companies are business-oriented. They have large amounts of cash and resources and they are willing to take this road," Mohamed said on the sidelines of a meeting of African bourse chiefs in the Kenyan coastal resort of Diani.

He said one of the biggest challenges was hiring staff after many educated Somalis fled their war-ravaged country at the height of the fighting. But he said now the bourse was recruiting some qualified Somalis who were being trained.

The bourse is working with the Nairobi Securities Exchange in neighbouring Kenya to train stockbrokers and staff.

The Somalia Stock Exchange has opened administrative offices in Mogadishu and other Somali centres like Kismayu, as well as in Nairobi, to help recruitment and in other related issues.

Somalis who fled abroad to escape the chaos at home send back an estimated $1.3 billion to their families every year, a lifeline to many in Somalia and helping spark a mini-construction boom in Mogadishu.

The remittances are sent using money transfer firms, such as Dahabshiil, which has an international network of outlets.

Mohamed said the new bourse was also talking to companies in the energy sector who are prospecting for natural resources in the Horn of Africa country. "There is potential for Somalia to be the next oil and gas producing country," he said.

He said security was improving with the help of African Union peacekeeping troops, helping boost economic activity.

Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 12:09 pm
by Basra-
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Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 12:31 pm
by GeoSeven
Kind of you to grace the thread your excellency Image

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Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 2:30 pm
by waraabe251
Somalia stock exchange not somali

Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 2:39 pm
by Basra-
I cant imagine Somalia having a stock market, Isn't that against the grains of Islam pillar of NO INTERESTS??? LOOL




PS GEO I am watching u abaay loool

Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 2:43 pm
by Twist
Isn't it little bit premature with such a giant leap when there aren't even established banks within all districts of Mogadishu, let alone the whole country? How will people invest in the "Somalia Stock Exchange" and manage their portfolios without financial institutions? Or this is something for only the few business people in Mogadishu (and Kismayo) and within the government? Image

Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 2:45 pm
by Basra-
Twist wrote:Isn't it little bit premature with such a giant leap when there aren't even established banks within all districts of Mogadishu, let alone the whole country? How will people invest in the "Somalia Stock Exchange" and manage their portfolios without financial institutions? Or this is something for only the few business people in Mogadishu (and Kismayo) and within the government? Image

Twist

Great question. But, like the article states, the Money Transfer business is successful. I mean, literally replaces banks. So, is this the new African Bank?

Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 2:50 pm
by Twist
Basra, I don't think you can utilize the current Money Transfer companies for investing in a Stock Exchange market. The sole use of Money transfer agency is to send money from A to B and that's it (as far as I know) and with investing you either need an established (and secure, well regulated with government guarantees, in case shit hits the fan) financial institution (Banks etc) and in most cases, online banking. Do we have any of that back home now? Not sure.

Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 2:52 pm
by Basra-
But the wire transfer can be the bank. All they have to do is start services. That's all. Deposits, cards, savings account. I still think it is to early for a stock market. lol Somalis are such imitators. They want to build Rome in one day. It is possible, but it has consequences. lol

Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 2:55 pm
by EvolSyawla
^

Dahabshiil has bank accounts, just no cards yet.

Re: Somali Stock Exchange set to open next year

Posted: Wed Nov 26, 2014 2:57 pm
by Twist
But who provides the guarantees needed for such services? Now when you send money from your home country back to Somalia, you're paying a service fee and the other person is receiving their money from the other end. No risks involved at all. In Stock Exchange, there is all kinds of economy involved and we know that the stock market is a risky business so if it crushes (and in a country like Somalia that has been away from the international markets almost quarter a century, the risk is even higher) so who is guaranteeing shit?

Re: Somali Stock Exchange set to open next year

Posted: Thu Nov 27, 2014 7:51 am
by GeoSeven
I'm not exactly sure how they're going to go about it all but I'm giving them the benefit of the doubt and assuming these guys are sitting somewhere right now with cohorts of international economists and advisers Image
Twist wrote:so who is guaranteeing shit?
Twist, that's probably the question on everyone's mind.

Re: Somali Stock Exchange set to open next year

Posted: Thu Nov 27, 2014 8:03 am
by LiquidHYDROGEN
Twist wrote:Isn't it little bit premature with such a giant leap when there aren't even established banks within all districts of Mogadishu, let alone the whole country? How will people invest in the "Somalia Stock Exchange" and manage their portfolios without financial institutions? Or this is something for only the few business people in Mogadishu (and Kismayo) and within the government? Image
Twist, you're doing it wrong. You're not supposed to use common sense.

Re: Somali Stock Exchange set to open next year

Posted: Thu Nov 27, 2014 8:20 am
by LiquidHYDROGEN
GeoSeven wrote:I'm not exactly sure how they're going to go about it all but I'm giving them the benefit of the doubt and assuming these guys are sitting somewhere right now with cohorts of international economists and advisers Image
Twist wrote:so who is guaranteeing shit?
Twist, that's probably the question on everyone's mind.

That's the worst thing to happen. It would be like sitting a bunch of infants (Somali gov) with a cohort of sexual predators and veteran paedophiles (WB, IMF, Internatioal banks/corporations etc.).

Re: Somali Stock Exchange set to open next year

Posted: Thu Nov 27, 2014 9:28 am
by Twist
LiquidHYDROGEN wrote:
Twist wrote:Isn't it little bit premature with such a giant leap when there aren't even established banks within all districts of Mogadishu, let alone the whole country? How will people invest in the "Somalia Stock Exchange" and manage their portfolios without financial institutions? Or this is something for only the few business people in Mogadishu (and Kismayo) and within the government? Image
Twist, you're doing it wrong. You're not supposed to use common sense.
Waan yaabanahay ninyahow. No question that such a market is vital for the economy of any nation and I am sure there are many Somalis who studied economics and related fields in reputable universities from around the world but I don't think the country is ripe for such a service at this moment. There are many things that need to be done before we're ready for a stock exchange, imo.

Well, I am not an expert so I wish the team that embarked on this take all the best.