When reading the recent article published on CNN Money, Fortune
“How we became entrepreneurs in Somalia”
(see SEF Blog), it became imperative for the Somali Economic Forum to
respond to and dispel the World Bank’s remarks in regards to why it
omitted Somalia from its annual
Doing Business Report 2014.
As stated in the said report; “
The
World Bank 2014 Doing Business report -- the latest annual assessment
of the ease of doing business in economies around the world -- once
again skips Somalia entirely.” Indeed, for such an authoritative
economic institution as the World Bank it is rather disheartening to see
their veiled neglect of Somalia’s recent economic and commercial
resurgence. However, their motivation for this omission was due to what
they perceived as;
“lawlessness in many parts of the country and a general inability to gather reliable data are undoubtedly two factors why Somalia continues to be absent in the report.”
This statement by the World Bank serves to ignore the present day
realities in Somalia and even more critically it can potentially serve
to hinder economic and developmental gains secured in the past few
years. Indeed, 2013 has proved to be a pivotal year for Somalia with
significant gains made in respect to political stability and general
security aswell as combatting piracy and other issues. Also, Somalia
currently has the strongest performing currency in the whole of Africa
as stated in a Bloomberg report which ranked the Somali shilling as the
best performer among 177 currencies tracked by Bloomberg this year.
Yet,
despite these improvements the World Bank chose to ignore conducting a
World Bank Doing Business Report in regards to Somalia’s economy. It is
crucial to remind our readers that the annual World Bank Doing Business
Reports act as a valuable source of economic and business
data and information
utilized by firms and investors all around the world in order to decide
whether to invest in a given country or not. In the context of African
economies these reports often act as the initial starting point for
investors and Multinational Companies wishing to invest which in turn
helps to stimulate economic growth through the increase in FDI and
general business activity. At this point it is important to note that
Somalia had the unfortunate distinction of being one of the few omitted
countries from the World Bank’s Doing Business Report 2014. In addition,
the second concern that the World Bank highlighted was what they
referred to as an
“inability to gather reliable data”. Indeed,
this in of itself is a common misconception in regards to Somalia and
its business environment. At the Somali Economic Forum, we conduct
rigorous research into economic, financial and
business key trends within Somalia from our UK office and our offices in North America and within Somalia.
This
quantitative data
is then analysed, critically assessed and used when compiling detailed
industry/sector specific reports which potential investors or other
interested parties can utilize for their own benefit. We feel that the
World Bank can benefit from collaborating with organisations such as;
the Somali Economic Forum as we possess rigorous, reliable and
substantial data which can be used to showcase the economic prospects
and business environment prevalent in Somalia. In addition, unlike most
organisations, SEF also has the strategic advantage of having offices
and operations based within Somalia which in turn provides the wider
public with a constant and up to date flow of information and reliable
data.
We feel that such an omission made by the World Bank’s Doing
Business Report 2014 runs contrary to their declared objectives as they
are essentially claiming that Somalia as a country is not worth
investing in. The Somali Economic Forum instead promotes investment and
business activity within Somalia in order to stimulate
economic growth
within the country. We do this through another service provided by SEF,
namely; the annual “Somalia Investment Summits” (SIS) held by the
Somali Economic Forum, with our last SIS summit held in Nairobi in July
2013 and our
Dubai Somalia Investment Summit scheduled
6th-7th April 2014.
Our annual Somalia Investment Summits bring together leading banking
and finance executives, investors and business experts. SEF has
succeeded in fostering strategic international partnerships in order to
encourage Foreign Direct Investment and improving best business
practices within Somalia. These prestigious Somalia Investment Summits
enable us at the SEF to meet one of our principle objectives, which is
to attract Foreign Direct Investment to Somalia by promoting the Somali
brand and informing global investors & multinational firms about the
diverse investment and business opportunities available within Somalia.
In
conclusion, the Somali Economic Forum would like to reiterate and
remind major organisations such as; the World Bank that Somalia’s recent
economic and political resurgence is something concrete and
sustainable. Yet, for Somalia to continue on its current growth
trajectory, the necessary investment or international engagement with
Somalia’s economy is crucial both in the short and the long term. Thus,
it is imperative that international organizations such as; the World
Bank aswell as major businesses collaborate with Somali organizations
and domestic businesses in order to reach a consensus and share reliable
data on Somalia’s economic activity. In the long run this will enable
positive economic solutions to real problems and it will ensure
Somalia’s current, rapid rate of economic growth trajectory is sustained
and consolidated.
.jpg)
