Mobile money platform Zaad is booming in Somaliland, but there is concern its reliance on the dollar is damaging the economy
AS regional and global leaders gather for the World Economic Forum in Nigeria – Africa’s most successful economy – to … More
Investing in a conflict zone like Somalia can be suicidal for global businesses even if the rate of return for their faith is higher. There is the need to worry about Corporate Social Responsibility, staff security, eruption of spontaneous violence, poor infrastructure and no legal recourse if things go wrong. Moreover, in the absence of widely available opportunities and political voice, together with corrupted leaders that embezzled seven out of every ten dollars they received according to a UN report published in July and strong presence of Al-Shabaab, people have come to rely on their tribes for security, protection and welfare. As a result, it would be very hard for both local and foreign investors to just set up a business in a certain region, bring their chosen staff and get on with their business without employing local tribes men in key posts even if they lack the qualifications and experience. Where they do decide to employ locals, investors may have to make enormous investment in the education and training which can deter even those with the deepest pockets.