Obviously, the Somali economy has been, over the years, standing on the edge of a financial abyss. But a combination of state-facilitated land seizures, irresponsible private bank credit asset investments and a weak regulatory environment has worsened the situation and created a ticking time bomb that could detonate into full-scale national bankruptcy at any time. As several opposition figures have painfully exposed, public deposits β money belonging to ordinary citizens β were diverted from private banks into the hands of the President, allegedly in exchange for state-owned land. This land, often forcefully taken from vulnerable communities, was then sold to private investors, particularly those with ties to the banking sector. The same banks, have plunged public deposits into luxury real estate construction projects across Mogadishu, hoping to sell them at high returns. But in doing so, they have not only tied up liquidity in a non-productive sector but also exposed Somaliaβs financial infrastructure to catastrophic risk.
Full article: https://wardheernews.com/the-looming-economic-collapse-in-somalia/
Full article: https://wardheernews.com/the-looming-economic-collapse-in-somalia/
