Time ripe for Kenyan business people to venture into Somalia

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As the economy recovers, it will be wise for Kenyans companies to set eyes on Somalia.

Though associated with insecurity for years, recent developments there are making it an attractive investment option.

In fact, in the past year, Somalia was the only neighbouring trade partner that registered strong growth in export volumes with Kenya.

With exports worth over Sh10 billion, it is the third-largest destination for Kenyan goods.

GENDER

Among factors that make business sense to set up shop in Somalia is strong political leadership, headed by Federal President Mohamed Abdullahi “Farmajo” Mohamed, who came into office in a peaceful transfer of power.

It’s also noteworthy that almost a quarter of the elected Members of Parliament are women — proof of gender parity, hence fairness.

The Mogadishu government is making strides towards sustainable stability. Besides joining anti-piracy efforts and holding security conferences, it now controls its airspace, which was under the United Nations since 1992.

The African Union is preparing to leave the country — a testament of an improved security situation.

There is not much competition in Somalia, more so due to decades of violence, and businesses would get much more returns there compared to other, more mature markets.

CARGO PLANES

There are business distribution lines throughout the country established via the miraa trade. Cargo planes ply the Kenya-Somalia route daily, so logistics should not be an issue.

Again, Kenyan traders enjoy goodwill as our country has hosted Somali refugees for more than two decades.

Since Kenya has a well-developed Islamic financial system, that would serve anyone wanting to do business in Somalia very well.

The communities along the common border have traded for centuries. Indeed, livestock trade has thrived for ages there.

A business can also set base in Garissa and other border counties and use that as a launching pad to Somalia. The presence of airports, government investments such as roads and the counties’ efforts to promote businesses in their localities would be a boon for businesses eyeing Somalia.

Further, the border posts, such as Liboi, ensure safe and efficient travel in and out of Somalia.

MOGADISHU

Though scarred by war, Somalia has many universities, whose graduates, together with Somalis returning from the diaspora, would provide skilled labour.

Public services are devolved and one doesn’t need to go to Mogadishu for every business need.

The UN and other international organisations and multinationals have been in Somali for a long time and a business would not be venturing into Somalia in isolation.

Rather, it would have abundance of knowledge and information to tap into. Besides, one can partner with locals in joint ventures.

As war ends ands and normalcy returns in Somalia, our youth can invest or seek jobs in Somalia.

That would also boost the fight against terror, both there and in Kenya.