Thursday, December 20, 2012

Somaliland: Business Confidence Survey Shows Surge in Investment





Hargeisa —The 2012 Business Confidence Survey, released this week, shows that investment in medium-sized enterprises more than doubled between 2011 and 2012. The Somaliland Ministry of Commerce and the Chamber of Commerce, Industry, and Agriculture conducted the survey with USAID support.

"This year's survey shows that businesses and investors are becoming more confident in the economy," said Somaliland Minister of Commerce Honourable Abdirizaq Ahmed Khalif. "We expect that their confidence will continue to grow and that investment will continue to increase.

The survey found that investment in medium sized-enterprises of $100,000 - $500,000 had more than doubled in Hargeisa between 2011 and 2012 (from 7.5 percent of respondents to 17 percent).

Nearly 300 local businesses from all regions of Somaliland responded to the annual survey-- including women entrepreneurs and youth-owned businesses as well as investors from the Somali Diaspora. The survey queried respondents about the ease of starting a business, perceived availability of skilled labour, the quality of infrastructure, security, and laws and regulations for businesses and investors.

Previous surveys had shown that businesspeople and potential investors were particularly concerned about weak legislation. In response, in 2012 USAID also provided assistance to the Ministry of Commerce to review and amend laws governing commerce and investment.

Support for these activities comes from USAID's Partnership for Economic Growth program, a $13 million initiative that supports stabilization by investing in the local economy and strengthening the livestock, farming, and energy sectors.

For more information, please contact Marybeth McKeever at mmckeever@usaid.gov or visit http://eastafrica.usaid.gov/en/home

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