I definitely think the study of somalia's political economy will definitely takeoff in the coming years its obvious that something that none of the current theories or models capture is happening in somalia.
Its actually amazing how much these transnational conglomerates have scaled when you look at their background story and the tough times they had to endure. Some of them started as small simple businesses like a small shop:
And they have noble aspirations:
Their stories are very inspirational to read. They had to endure a lot due to the political situation in the region and picked themselves up , to build again a new and have to become creative to navigate it all. The term "Resilient" is a complete under statement when it comes describing Somalis.
So if they can grow and scale under these types of circumstances. With the oil money and more government support that can directly fund them and create a better environment they will explode even more.
I mentioned this before but i noticed a lot of them start off in the general trading /import/export/distribution business or shipping/logistics and then sink the capital they gained from it into investing in manufacturing, infrastracture and diversify into other sectors providing diverse services.
What you say is true , remember how that study i showed said Singapore, China and Malaysia advanced OFDI (Outward Foreign Investment) , that their companies and business people would invest abroad to create economic growth for themselves in their own country when they were still developing countries and how this is comparable to what the Somali business class has done to advance Somalias economic growth.
But other emerging/developing economies like Kenya etc fail to replicate this, because they think only advanced economies can engage in FDI.
Somali companies based inside Somalia are setting up businesses abroad (Nairobi, UAE, East Africa hubs) not as migrants, but as extensions of their Somali operations.
Invest abroad → earn foreign profits → repatriate profits back home → fuel domestic growth.
This is unusual in Africa, where most states focus only on inward FDI (foreigners investing into the country).
This is the same strategy Singapore, Malaysia and China did. So Somalia has leapfrogged to an OFDI-led growth model something typically seen in emerging Asian tiger economies, not low-income African states.
But think about it further in Singapore and Malaysia the two demographics driving both places economically is not Malay's or Indians, its actually the Chinese with their global diaspora business connections.
It's the same impact Somalis have across East Africa in open market economies
Devastated at home, Somali businesses thrive in Uganda
Their history is knit with episodes of devastation – war and hunger. They have been accused of offering a safe haven to Al Qaeda terrorists. And recently, they have redefined the art of piracy, in which large ships have been captured and released after huge ransom payouts.www.hiiraan.com
The reason seems obvious to anyone how this is most prominent among certain demographic than others like the Jews and Chinese , others don't practice group economics , they don't have tightnit transnational economic networks and they don't have a mercantile culture.
But at the core of it is the Mercantile/industry culture is what drives it , its like you said kinship isn’t enough on its own you also need a cultural orientation toward trade, basically willingness to take risks, move abroad, and seek profit.
With Somalia rising economically the share of Somalis economic ownership will just grow across the Gulf and East Africa. These networks will just be flooded with capital & produce that will strengthen them.
You noticed the same thing , many of the financial institutions based in Somalia have opened branches across various African countries.
And you’re right: could you imagine all these foreign exchange companies, money transfer operators, and Sharia-compliant commercial banks suddenly being flooded with capital from future oil and other revenue streams in Somalia?
Even the fuel distribution networks would be transformed.
That same paper mentioned how Somalis already dominate the fuel sector across East Africa. Once Somalia starts producing oil and gas, they could export it through Somali-controlled supply chains.
That means Somalis wouldn’t just profit from selling the oil itself but also from every step of the chain that brings it to market, keeping the value circulating within the network.
This really shows how financial institutions are the backbone powering these businesses and an influx of oil revenue would supercharge the entire system within just a few years.
lifestyleuganda.com
I really wonder how many of these guys there are? But the thing that surprises me the most is how there's never really been a study of this phenomenon except a few small general studies in South Africa and maybe some in Kenya. But on the whole it seems like the scale of this phenomenon has gone unnoticed.@Midas I came across one of those East African Somali billionaires who runs a transnational conglomerate, this one based in Uganda. There’s been more public coverage on him recently since he bought a football club:
Who Is Hajji Omar Mandela? Ugandan Billionaire and Philanthropist – Lifestyle Uganda
Discover the life and achievements of Hajji Omar Mandela, a prominent Ugandan businessman, teacher, and philanthropist.
What’s particularly interesting is how his conglomerate mirrors the growth pattern of those in Somalia and Somaliland.
It began as a small hardware store and gradually expanding into a large, diversified multinational corporation.
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www.radiodalsan.com
