Turkey leads direct investments in Somalia: Economic Advisor's Report

In a recent address, economist Hosow highlighted the potential for Somalia's economic growth, emphasising the importance of industrial development, particularly in the oil and gas sectors. He also underscored Somalia's attractive investment opportunities, citing its natural resources, vast arable land, and a youthful population that makes up approximately 75% of the population.

Somalia has made significant strides in recent years, with its economy averaging 4% growth. The service sector drives the country's economic growth, and revenue collection has seen remarkable success, with revenues increasing approximately 88% since 2022.

Hosow noted that Somalia currently has almost no debt, with a debt-to-GDP ratio of 6%. This manageable debt level, he suggested, allows Somalia to focus on economic growth rather than debt servicing. In fact, he went on to say that if more reforms are implemented, Somalia could become debt-free.

The private sector in Somalia has been on the rise, and Hosow encouraged other countries to invest, promising great returns from their investments. He called for the world to view Somalia as a country capable of major economic development leaps.

Turkey is among the countries supporting Somalia's economic growth, with investments in infrastructure, airports, ports, and social sectors. China and several African countries have also been actively engaged in Somalia's economic development in recent years. China invests in infrastructure projects such as ports, logistics centres, industrial parks, and energy infrastructure as part of the Belt and Road Initiative. Japan, on the other hand, supports social and economic start-ups in Africa, including Somalia, through public-private partnerships and financing.

Somalia's long-term growth is guided by the "Century Vision 2060" and a National Transformation Plan, which aims to move the country into the upper-middle income countries category with an annual per capita income of approximately $6,000 to $7,000. The vision also targets making Somalia a developed, prosperous, and peaceful country.

In a significant move, Somalia joined the East African Community, further strengthening its position in the region. Hosow emphasised that Somalia has no debt problem and that the country's economic growth is sustainable. He concluded by encouraging continued investment and development in Somalia, stating that it is poised for major economic leaps in the coming years.