Reddit users wondering why rich Somalis don’t invest back home

[Lostbox]

It a about basic market Sentiment. Nobody believe in Somalia institutions or laws or even basic governance. Why risk money on a unproven system?

 

[Rayaale]

Garacad port was built by money pulled by the diaspora, if Somalia gets stable enough a lot of developments will happen.

 

[Shimbiris]

As the biggest Shimbiris fanboy, I'd die a happy man within the first week of the regime

Well, when you put it like that... I think I can allow a stay of execution just this once.

 

[Idilinaa]

They actually do though. @Idilinaa It's kind of wild how these conversations on somali history,buisnessman,academics, etc get repeated all the time as some dude/girl probably a teenager or in their early 20s who knows very little about this stuff develops an intrested in somali related matters and makes unfounded assumptions out of ignorance (youthful ignorance if I'm being generous)

You have no idea if you go through this thread discussion on Somali investment i made particularly about investments in affordable electricity and the local companies involved.

A dying society- Somalia.

Things I have observed during my time in Mogadishu. We have no ministry of education as we once had. Many children don’t go to school. There are private schools that some individuals open (without any guidelines) and they cost a lot of money for already struggling families. We have many kids...

www.somalispot.com

It shows you have glaringly ignorant most Somalis are about the growing wealth and development taking place in the country especially about how much diaspora money directly goes into creating industries and reviving domestic production that generates revenue locally. This is a chart from 2017.

Somali Diaspora Investment Fuels Growth: A Snapshot

issuu.com

Somalis build business and wealth wherever they live in an attempt create economic opportunity for themselves. It doesn't mean they don't invest in Somalia, in fact the money they even generate from those businesses and work abroad goes to fund and invest in businesses, factories, agriculture, and manufacturing facilities, infrastructure , private schools, hospitals etc

Let me put into perspective how significant the Somali diaspora investment in Somalia is. Somalia receives more diaspora investment 2.9 billion a year, than most African Countries receive in FDI(Foreign Direct Investment)

Our yearly diaspora remittances 2.9 billion equal or even exceed FDI that Kenya and Ethiopia gets (FDI in Kenya (2022): $1.6 billion, FDI in Ethiopia (2022): $3.3 billion , FDI in Nigeria (2022): $5.3 billion). We recieve more in remittances than many African countries recieve in FDI.

We can realistically pull 5-10 billion investment capital from the diaspora and we can get 10-20 billion of investment from local businesses. This also gives us space to negotiate better deals if we attract foreign investment, to retain local ownership and retain wealth.

They should look at Japan and Korean model of funding infrastructure development without foreign loans and heavy reliance of FDI.

This doesn't even account for the many billions that goes into NFD/or/Eastleigh, DJibouti and Ogaden regions Somalis live in.

Local business and banks in Somalia re-invest tens of billions each year. Local businesses and banks are funding port developments like we have seen Garacad, Hobyo etc, roads , energy etc and housing projects.

I was even surprised to find out how the same Salaam Bank that invested millions to build a affordable housing in the suburbs of Mogadishu was also funding the renewable energy in Somalia to fund companies like Beco.

In a bid to encourage and promote renewable energy that is safe for the environment, the Salaam Somali Bank in 2016 allocated an investment for companies and organizations committed to preserving the environment. This was after Somalia signed the landmark Paris Climate Agreement in 2015 as part of its commitment to adopt climate-compatible and environmentally sustainable pathways

“After the collapse of the central government, most social services were provided by private companies. This does not mean that companies were not awake to the threats felt by the world over, so we have taken upon ourselves to reduce air pollution,” Salaam Somali Bank Investment Manager Yassin Omar said.