Somalia’s exclusion in the World Bank Doing Business Report 2014

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 6^th-7^th 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.