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Somalia is a gold mine
- Thread starter Ha Lima
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I wouldn’t say you can become a millionaire or billionaire overnight , that usually takes years, and most big companies you see today started small/modest. But you can definitely launch a profitable venture in Somalia. There’s already business activity in almost every sector, yet the demand is still larger than what’s being supplied, so the opportunities are there.
It’s also much easier now than before to set up a business without start up capital. In the past, people relied mostly on the hawala system and money-lending schemes, but today there are micro-financing options, development funds, and even commercial bank loans.
Here are a few examples you can check out:
I read that there is like 13 microfinance institutions , and they have pretty much boosted business developments. Finance everything from agri-businesses, renewable energy, fishing, Small and Medium Enterprises (SMEs), Asset financing (like purchase of a car) . Some of them even finance factories.
Even Dahabshiil has its own microfinance arm with branches across Somalia:
microdahabmfi.com
And to give you an idea of the recognition Somali MFIs are getting ,one of them even won an international award:
salaamgateway.com
On top of that, already established businesses in Somalia often invest in new ventures. The business climate is surprisingly open , people don’t really care what qabiil you’re from if your idea is solid.
There aren’t really any monopolies in Somalia, and the private sector operates largely independent of government.
Most business activity is decentralized, cooperative, and highly competitive. You’ll often see multiple companies in the same sector competing head-to-head. Take telecom, for example there are around 13 providers across the country, making it one of the most competitive markets in Africa, which is why services are so cheap. There is new players popping up.
Big businesses also tend to invest in new ventures. Hormuud, for instance, runs an Entrepreneurship Fund that supports startups and small businesses.
On top of that, Somali companies frequently cross-invest in one another, which promotes shared economic growth rather than corporate dominance
It’s also much easier now than before to set up a business without start up capital. In the past, people relied mostly on the hawala system and money-lending schemes, but today there are micro-financing options, development funds, and even commercial bank loans.
Here are a few examples you can check out:
- https://raasmfi.com/so/
- https://kimsmfi.com/
- https://amalbankso.so/micro-finance/
- https://maalmicrofinance.com/
- https://himilomfi.com/
- https://asalmicrofinance.com/
- https://gargaara.com/
I read that there is like 13 microfinance institutions , and they have pretty much boosted business developments. Finance everything from agri-businesses, renewable energy, fishing, Small and Medium Enterprises (SMEs), Asset financing (like purchase of a car) . Some of them even finance factories.
Even Dahabshiil has its own microfinance arm with branches across Somalia:
About us - Empowering People
microdahabmfi.com
And to give you an idea of the recognition Somali MFIs are getting ,one of them even won an international award:
Somalia-focused Kaah International Microfinance Services wins $100,000 EFICA 2017 | Salaam Gateway - Global Islamic Economy Gateway
Kaah International Microfinance Services (KIMS) has been named the 2017 recipient of the Ethical Finance Innovation Challenge and Awards (EFICA), which is co-organised by Thomson Reuters and Abu Dhabi Islamic Bank.
salaamgateway.com
On top of that, already established businesses in Somalia often invest in new ventures. The business climate is surprisingly open , people don’t really care what qabiil you’re from if your idea is solid.
There aren’t really any monopolies in Somalia, and the private sector operates largely independent of government.
Most business activity is decentralized, cooperative, and highly competitive. You’ll often see multiple companies in the same sector competing head-to-head. Take telecom, for example there are around 13 providers across the country, making it one of the most competitive markets in Africa, which is why services are so cheap. There is new players popping up.
Big businesses also tend to invest in new ventures. Hormuud, for instance, runs an Entrepreneurship Fund that supports startups and small businesses.
On top of that, Somali companies frequently cross-invest in one another, which promotes shared economic growth rather than corporate dominance
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I dont know what Im talking about award
I wouldn’t say you can become a millionaire or billionaire overnight , that usually takes years, and most big companies you see today started small/modest. But you can definitely launch a profitable venture in Somalia. There’s already business activity in almost every sector, yet the demand is still larger than what’s being supplied, so the opportunities are there.
It’s also much easier now than before to set up a business without start up capital. In the past, people relied mostly on the hawala system and money-lending schemes, but today there are micro-financing options, development funds, and even commercial bank loans.
Here are a few examples you can check out:
- https://raasmfi.com/so/
- https://kimsmfi.com/
- https://amalbankso.so/micro-finance/
- https://maalmicrofinance.com/
- https://himilomfi.com/
- https://asalmicrofinance.com/
- https://gargaara.com/
I read that there is like 13 microfinance institutions , and they have pretty much boosted business developments. Finance everything from agri-businesses, renewable energy, fishing, Small and Medium Enterprises (SMEs), Asset financing (like purchase of a car) . Some of them even finance factories.
Even Dahabshiil has its own microfinance arm with branches across Somalia:
About us - Empowering People
And to give you an idea of the recognition Somali MFIs are getting ,one of them even won an international award:
Somalia-focused Kaah International Microfinance Services wins $100,000 EFICA 2017 | Salaam Gateway - Global Islamic Economy Gateway
Kaah International Microfinance Services (KIMS) has been named the 2017 recipient of the Ethical Finance Innovation Challenge and Awards (EFICA), which is co-organised by Thomson Reuters and Abu Dhabi Islamic Bank.
On top of that, already established businesses in Somalia often invest in new ventures. The business climate is surprisingly open , people don’t really care what qabiil you’re from if your idea is solid.
Whats particularly interesting is that these MFI came together and formed an association. It reminds me of the cooperative approach that exist in other sectors where dozens of company's, herders, farmers, fishermen and factories come together to grow and scale and improve.
This is what i hope will be replicated in our political process in the near future where regions come together to form a union/coalition in mutual uplift/prosperity and the increase in local and grassroots politics to boost inclusiveness. This is how things acted back in our history.
Btw, Salaam Bank gives out annual free micro-financing to businesses https://www.garoweonline.com/en/new...-bank-continues-to-help-small-businesses-grow
All the banks have micro-financing options and various sharia complaint loans to businesses , asset or home purchases.
There are 13 licensed commercial banks by the Central Bank operating in Somalia with each having multiple branches. Most of these commercial banks are what you would call community banks
https://en.wikipedia.org/wiki/Community_bank
In this study they showed that countries that local small banks help economies grow. Basically, countries where small, private, locally owned banks have a bigger market share and run more efficiently tend to have stronger economic performance.
https://link.springer.com/article/10.1023/B:FINA.0000020659.33510.b7
They also found that state owned banks had unfavorable effects on economic performance.
Big advantage to Somalia that the banking system is dominated by community & domestic commercial banks is that profits and lending get recycled back into the local economy, instead of being sent abroad (like with foreign banks) or eaten up by inefficient state run systems. And on top of it they have extremely robust digital banking and fintech infrastructure in place which increase financial inclusion. Being they follow Islamic principles, that they are essentially non are predatory lenders and they are extremely ethical and responsible meaning no interest based debt traps, and financing is tied to real economic activity (asset-based).
So if any of you are planning on starting a business in Somalia or to purchase assets , don't hesitate to reach out to them or apply.
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