Somalia:The Somali Stock Exchange trades its first shares
SEF London – The inaugural Somali Stock Exchange (SSE) began selling its first shares in 1st Sep 2015 at the exchange’s headquarters in Garowe, Somalia.
The Somali Stock Exchange was founded by the Somali Economic Forum (SEF) in March 2011 which has as its principal aim encouraging Foreign Direct Investment in Somalia and promoting private sector development.
The Somali Stock Exchange has already made history by becoming the first ever stock exchange to operate inside Somalia.
Historically Somalis sell their shares and invest through the utilisation of familial tie links and through known, close networks. This system of trust is otherwise known as ‘Hawala’ and has been the foundation of Somalia’s multi billion, innovative international remittances sector.
The SSE is projected to grow from strength to strength as there is a substantial capital pool available to the Somali diaspora according to Hassan M. Dudde, the Chairman of The Somali Economic Forum. Previously, these diaspora investors would be forced to invest their capital in other markets, such as Nairobi or Dubai. However, with the emergence of the first Somali Stock Exchange, they can now invest and seek capital investment within Somalia’s own borders and main urban centres.
Currently, in its initiation phase, over 20 firms are already listed on the stock exchange as it aims to attract even more firms in the near future. The SSE complimented its launch with a road show, which started in Bosaso, aiming to expand to the leading commercial cities. The SEE also held its first conference at the Puntland Chambers of Commerce in Bosaso during its launch.
Economists predict that the Somali Stock Exchange will expand rapidly due to high levels of demand from the largest Somali firms as well as foreign firms looking to invest in Somalia’s ever growing private sector. Also, the SSE is looking to continue its road show with future plans to hold similar investment conferences in Hargeisa, Mogadishu and potentially Kismayo.
We at SEF believe that the Somali Stock Exchange will truly allow Somalis to live up to their commercial reputation as traders and business people, thereby connecting Somalis across the world.