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PRIVATE SECTOR DEVELOPMENTS IN SOMALIA: ANALYSIS ON SOME MAJOR

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 International Journal of Economics, Commerce and Management
United Kingdom ISSN 2348 0386 Vol. VII, Issue 12, December 2019

http://ijecm.co.uk/

PRIVATE SECTOR DEVELOPMENTS IN SOMALIA: ANALYSIS

ON SOME MAJOR SECTORS

Mohamed Mire Mohamed

Jamhuriya University of Science and Technology, Mogadishu-Somalia
mmmire4@gmail.com

Najibullah Nor Isak

Ministry of Finance, Somalia
najiibsheekh@gmail.com

Dhaqane Hallane Roble

Graduate Student at University of Nairobi, Kenya
dhaqaneeco@gmail.com

Abstract
This paper aimed to present the recent situations of private business sector in Somalia. The
study selected some major business sectors including telecommunication, financial, transport,
trade and manufacturing. The main reason beyond selection of these sectors is the fact that
these sectors were the lead of goods and service sector growth and economic contribution to
Somalia in general and urban areas in particular. The study utilized two data collection methods;
firstly, an interview method of data collection is utilized through asking questions to business
experts including business practitioners as well as academic business experts and secondly, an
observation method was also employed while the authors have been witnessing the growth of
these sectors in Mogadishu, the capital city, and all other states. The study reveals the pressing
challenges in Somalia’s business environment and different ways private sector contributes to
the economy. This paper recommends for both public and private sectors of Somalia to take
part the growth and investment on new and existing businesses through technology since it is
good for the country’s economy.

Keywords: Telecommunication, Financial, Transport, Trade, Manufacturing, Private Sector,

Development, Somalia

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INTRODUCTION
During the challenging and almost three-decade-long conflicts of Somalia, private sector has
grown, shown resistance and remained as key driver of the economy. Financial services, trade,
telecommunications, transportation and construction (IMF, 2019). These sectors rapidly grew
and partially invested through diaspora remittances. However, lack of regulations, presence of
anticompetitive factors and pressing security conditions still posing adverse effect on the
business communities and hinder expansion of the existing investments in the entire country
(World Bank, 2015).
For instance, (Leeson, 2007) wrote that there was a progress in business sector of
Somalia in the period of stateless. Light manufacturing goods were invested in Somaliland,
Puntland and Southern regions. Hospitality and services grown, a progressed
telecommunications sector and locally owned as well as international companies joined the
transport industry. He concluded that some indicators, including business variables have been
improving even in the civil war era.
Somalia’s business community optimally served the people and struggled to provide
essential goods and services through offering basic services including health and education.
However, the private sector has not achieved some positive outcomes due to absence of
regulatory (Nenova, 2004).
Businesses have been doing better in pre - and post –colonial eras and regulations in
place have been differently enacted and implemented. The colonial administration was seeking
a consumer market for their companies’ products while the military regime – with a command
economy - from early seventies nationalized the private business through establishing about
thirty state owned enterprises which later on turned into aggressively leakage source of public
funds and were not properly taxed.
The private sector’s contribution to poverty reduction and economic growth has been
globally recognized in recent decades. In many and different ways, it injects to the economy an
investment, build infrastructure, employs labor force and produce goods and service both for
public and private consumptions (Miyamoto & Chiofalo, 2017).
In Somalia, private sector greatly contributes to the economy in different ways. It
provides job opportunities to labor force as well as being a key source of livelihood to a huge
number of households, participation of facilitating trade, contribution to the economic recovery
and is a source of revenue to both national and subnational levels. This paper aims to presents
the current status of some key private businesses in Somalia. This incorporates: the roles
private business sector played in the economy, the existing challenges and formulating possible
solutions and recommendations to the concerned bodies.

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LITERATURE REVIEW
The Situation of Somalia’s Some Selected Private Sectors
Somalia’s business communities have been struggling to cover the demand of the society either
by importing the supplies (mostly) or by locally producing it (rarely). The following sections will
demonstrate some related issues touching the selected sectors for the study.

Financial profile of Somalia

Somalia has been without a formal financial institutions and commercial banking sector since
the military regime has been overthrown the power in 1991. Before the civil war, Somalia has
strong formal financial sector and which were entirely owned by the state including State
Insurance Company, Somali Development Bank, Central Bank of Somalia and Commercial and
Saving Bank. Upon the collapse of the central government, private companies started running
and operating basic financial services such money transferring (earlier) and later on invested in
banking sector and insurance. However, the financial sector was very weak in this particular
time and all individuals and entities including international organization had no alternative option
rather than accepting the poor quality services. Any way, it significantly contributed the diaspora
remittances reach the local society and also facilitated partial needs of humanitarian
organizations working in the country. Oversight by an active government entity was lacking,
resulting an informal financial services happening without government knowledge while this is
more agile and more widely used than more formal and bureaucratic financial institutions.
After the civil war, the financial sector has grown up and they currently cover private
remittance companies, commercial banks and insurances while the central bank is the
regulator. The investment on these services was a job opportunity to many local graduates in
either by employment or by providing lower level credits to run small scaled investments. They
also provide medium term investments on building, land, real estates and other types of goods
purchases.
Although there are many challenges facing the financial sector of Somalia including lack
of an effective formal banking sector, absence of staff skills, the insecurity as a result from civil
war, weak regulatory framework and security exchange. The Central Bank of Somalia is taking
crucial steps to modernize national payments systems. Supported by the international partners
such as World Bank.
According to a literature, the payment systems process contributes to the improvement
of modern financial sector and market while this facilitates the process of transmitting and
confirming transactions prior to settlement and the process turns the promise of payment. Digital
payment requests into the actual movement of money from one account to another with speed,

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lower cost, reliability, and convenience and settlement will contribute to financial stability in
Somalia and evoke domestic and foreign trust in Somali financial institutions.
The expectation is that this development will have a positive impact on economic activity,
management of monetary aggregates, transaction costs, and development of new financial
products which can become important sources of fee income for financial institutions. These
developments also bring Somalia one step closer to the standards of international financial
systems. In general Somalia’s banking system has got new era after the civil war, the entire
financial institutions have been rebuilding from scratch. The financial sector has gradually
improved over the last couple of years. And the local private banks established micro
investment department, which provide direct loans and grant with the aim of encouraging local
entrepreneurs and job creation of the young graduates. The Federal Government of Somalia
now reiterated to implementing critical reforms to strengthen the functioning of the Central Bank
of Somalia, its governance and to promoting financial sector development. One of the main
challenges facing the current government is currency reform, after the civil war the country’s
currency has been depreciated overtime and its value was under contraction process, the
purchasing power party of the country is lower than neighboring countries. Reform involves two
phases. In the first, the Central Bank of Somalia will replace the existing Somali shillings in
circulation with the new currency issued in small denominations (1,000, 2,000, 5,000, and
10,000). In the second phrase, after strengthening its institutional capacity and developing
independent monetary policy instruments and reserve management guidelines, the central bank
of Somalia will inject larger denominations of Somali shilling banknotes. Introduction of the new
banknotes will mark the first time the bank will have issued currency since 1991. The new notes
will help the authorities end widespread counterfeiting but will require increased capacity in the
CBS to manage.

Transport Sector
Somalia is located horn of Africa and has a climate in which to support easy construction and
facilitates operation of transportation infrastructure and provide abundant natural availability of
construction materials inputs although after the civil war broke out in Somalia all local industries
were closed.
In the recent years, small industries have been reopened and produced construction
materials those cheaper than imported materials from outside countries and this participated to
starting new buildings in the whole country specially the main cities like Mogadishu, Kismayo,
Baidabo, Garowe, Hargesia and Dhusamareb all these cities have been utilized security stability
and based on Federal members of state and Federal Government and continuously they have

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getting new investment in every year and the construction of roads, Airports, Ports and Markets
are increasing unexpected way. The overall governance and thereby structure of government in
Somalia is emerging. Ministry of Public Works, Housing and Reconstruction (MPWHR) is
mandated to undertake the planning, design and construction of government buildings,
infrastructure such as national roads and bridges, flood control, water projects and other public
works; and to promote standards in the construction and housing industries. Currently, the
ministry does not have the organizational depth and capacity to undertake or even effectively
monitor the large-scale investments proposed in the road sector. At the federal level, a road
authority is planned but is not yet functional. The ministry also seems to have the dual role of
policy and regulation.
The federal Ministry of Transport and Civil Aviation controls the airports, airstrips and
airspace in Somalia. It is responsible for all regulatory functions, policy, planning and operations
of the aviation sector. However, the ministry and the Somali civil aviation authority (SCAA) are
constrained by a shortage of experienced professionals. The SCAA has a regulatory and
enforcement mandate and should be separated from all operations as this is a conflict of
interest. The MPMT includes offices of the Somali Shipping Agency and the Somali Ports
Authority manager. Again, its control and mandate is severely restricted. Several of Somalia’s
autonomous states have set up highway and port authorities.
In general Somalia has a lot of airports but main airports are eight and 18 other
important airstrips across Somalia and key ports in Somalia including both major ports like
Mogadishu, Berbera, Kismayo and Bosaaso. Three of these are deep water ports, and all four
operate throughout the year. Despite the vagaries of war and time, the infrastructure at the
major ports appears to be in reasonably good condition. However, operating performance is
poor with low handling speeds. they vary according to the port and cargo but are generally high.
The published handling charges are low, but there are excessive additional terminal handling
charges imposed on importers by the shipping lines, implying many hidden costs. The ports are
vastly over-staffed: Mogadishu has 5,000 workers, and Berbera has around 2,000. Government
also uses the ports as the main revenue collection points (customs duties and other fees and
taxes). This also contributes to delays and perceived excessive port costs trader is unable to
clearly distinguish border and inland revenue costs from real/pure port services related costs.
There has been some progress towards adopting a landlord port model at some of the major
ports. In particular, the ports are bringing in private operators for cargo handling.
Mogadishu now has Turkish operator (Al Bayrak), and Simatech has been contracted to
expand and run the container terminal with a huge investment. Berbera is also considering
occasioning a container terminal. Trade corridors contribute significantly to regional integration

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and economic development. Currently, the only established corridor connecting Somalia with
the rest of Africa is the Berbera-Addis Ababa Corridor. It links Addis Ababa to Sudan in the
north and to Mombasa via Nairobi in the south. However, Djibouti offers an alternative
destination for Ethiopian exports. Kismayo, in southern Somalia may provide a competitive route
to Nairobi and Kampala. Although routes from Somalia to other African countries in the region
may not appear rewarding, it is the closer distances to ports in the Middle East, Pakistan, and
India and beyond that could add value to these corridors through Somalia. Trade routes
between Kenya, Ethiopia and Somalia are critical, as improving the transport corridors between
these neighboring countries to Somali ports should lead to further growth in regional trade.
In the side of airports Somalia also has four big airports includes Aden international
Airport in Mogadishu, Egal in Hargeisa, Garowe and Kismayo. However, there are others in
Bosaso, Galkio, Berbara, Baidoba, Dhusamareb and so on. Together, these are major airport
and everyday use Domestic and international flights after 2012th every year Somalia gradually
increasing the number of international flights arriving and first flight from Turkish airline arrived
on March 2012 and later on, many international airlines has announced to starting flights to
Somalia and while some others have already started doing so such as: Ethiopia airways,
Djibouti, Kenya airways and lastly Qatar airways started a direct flight from Doha to Mogadishu
and back and also to other global cities. Uganda flights are expected to commence on late
2019. All these international flights have shown that the country’s security getting stable and
economically will improve gradually and will create job opportunities as transport businesses
tend to open offices inside Somalia for service delivery through employing labor forces while
other sectors are gradually growing. Increasing international flights into country also will
increase the number of foreigners coming to the country and this can lead to investments.

Telecommunication Sector
After the civil war, some Somali citizen entrepreneurs set-up new businesses including
telecommunication companies, to spring up the country and competed to provide missing
service, (Abdinasir M. & Sarah C., 2010). Somalia now offers some of the most technologically
advanced and competitively priced telecommunications and internet services in the world..
Funded by Somali entrepreneurs and backed by expertise from China, Korea and Europe, these
nascent telecommunications firms offer affordable mobile phone and internet services that are
not available in many other parts of the continent. Telecommunications, internet, radio and
television in the nation are largely concentrated in the private sector. Somali telecommunication
companies also provide services to every city, town and hamlet in Somalia. There are presently
around 25 mainlines per 1,000 persons, and the local availability of telephone lines (tele-

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density) is higher than in neighboring countries; three times greater than in adjacent Ethiopia.
Prominent Somali telecommunications companies include; Golis Telecom Group, Hormuud
Telecom, Somafone, Nationlink, Somtel, and Telesom. Hormuud Telecom alone grosses about
$40 million a year. Despite their rivalry, several of these companies signed an interconnectivity
deal in 2005 that allows them to set prices, maintain and expand their networks, and ensure that
competition does not get out of control (Abdinasir M. & Sarah C., 2010). Although this
interconnectivity agreement lasted shortly after immediate conflict against certain companies in
some areas.
In 2008, Dahabshiil, a multinational money transfer and banking company, acquired a
majority stake in Somtel, a Hargeisa-based telecommunications firm specialising in high speed
broadband, mobile internet, and mobile phone services. The acquisition provided Dahabshiil
with the necessary platform for a subsequent expansion into mobile banking, a growth industry
in the regional banking sector.
Investment in the telecom industry is held to be one of the clearest signs that Somalia's
economy has continued to develop despite civil strife in parts of the country (Abdinasir M. &
Sarah C., 2010). The sector provides key communication services, and in the process facilitates
job creation and income generation. On March 22, 2012, the Somali Cabinet unanimously
approved the National Communications Act, which, for now, paved the way for the
establishment of a National Communications Authority, a national regulatory agency for
broadcasting and telecommunications sectors. The bill was passed following consultations
between government representatives and communications, academic and civil society
stakeholders. According to the Ministry of Information, Posts and Telecommunication, the Act is
expected to create an environment conducive to investment and the certainty it provides will
encourage further infrastructural development, resulting in more efficient service delivery.
Currently the National Communications Law is effective, operational and signed by the
president at the end of 2017.
The Somali Telecommunication Association (STA), a watchdog organization that
oversees the policy development and regulatory framework of Somalia's ICT sector, reported in
2006 that there were over half a million users of internet services within the territory. There were
also 22 established internet service providers and 234 cyber cafes, with an annual growth rate
of 15.6%.
In December 2012, Hormuud Telecom launched its Tri-Band 3G service for internet and
mobile clients. The first of its kind in the country, this third generation mobile
telecommunications technology offers users a faster and more secure connection.

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In November 2013, Somalia received its first fiber optic connection. The country previously had
to rely on expensive satellite links due to the civil conflict, which limited internet usage.
However, residents now have access to broadband internet cable for the first time after an
agreement reached between Hormuud Telecom and Liquid Telecom. The deal will see Liquid
Telecom link Hormuud to its 17,000 km (10,500 mile) network of terrestrial cables, which will
deliver faster internet capacity. The fiber optic connection will also make online access more
affordable to the average user. This in turn is expected to further increase the number internet
users. Dalkom Somalia reached a similar agreement with the West Indian Ocean Cable
Company (WIOCC) Ltd, which it holds shares in. Effective the first quarter of 2014, the deal will
establish fiber optic connectivity to and from Somalia via the EASSy cable. The new services
are expected to reduce the cost of international bandwidth and to better optimize performance,
thereby further broadening internet access. Dalkom Somalia is concurrently constructing a
1,000 square mile state-of-the-art data center in Mogadishu. The site will facilitate direct
connection into the international fiber optic network by hosting equipment for all of the capital's
ISPs and telecommunication companies.

Manufacturing
Manufacturing sector is very vital for developing countries. It is considered as a source of
employment and positive spillovers (Tybout, 2000). In Somalia, the history of manufacturing was
brilliant before the civil war era and there were fifty-three small, medium and large enterprises
which were running the sector. The country had an opportunity to produce juices, textiles,
canned meat, fruits and fish, food stuff, sugar, alcohol, some cosmetics, beverages and candies
and so on. However, currently it is very low and so few compared to the past history and also to
the countries in the region. The data from Somalia customs indicate that capital machines for
manufacturing and raw materials have been increasingly imported to Somalia since last three
years. This is an indication of that the future of manufacturing is brilliant for Somalia as a result
the society’s entrepreneurship characteristics.
However, manufacturing yet remains slow due to insecure and harsh environment with a
limit of private investments. These threats made it difficult to attract a modern technology
investing (World Bank, 2018).There are several light manufacturing factories surrounding
Mogadishu. These factories produce foams, plastic elements, soft drinks and beverages,
napkins, furniture, hand-made clothes, aluminum, bricks and interlocks, cement, shampoo and
some cleaners, plastic bags. For their encouragement, the government grants customs duty
relief for their establishment machines and tools and they are given a 50% of duty reduction
importing on raw materials Mogadishu Port. However, manufacturing can be classified as a

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small and early stage since it can only produce some light items that cannot significantly
contribute to economy.
In other regions such as Somaliland and remaining states do not produce more than
aforementioned products and even they do less.

Trade (Export and Import)

In the last three decades Somalia did not have an active government institution which could
assist the business community and as a result, the country has lost its trade alliances. However,
the private sector did not wait for this, and struggled to overcome all these challenging factors.
The pressing challenges included political instability, lack of security, absence of financial and
credit support to the business community and weakness of the government institutions (Hassan,
Mohamed, Isak, & Mohamed, 2018). Another research by (Mohamed, Isak, & Dr. Ali, 2015) has
revealed that agricultural products including the livestock had excelled the export sector of
Somalia. Business communities tried to solve the domestic demand of the society by either in a
trade means (for importing) or in a domestic supplying through local productions. Furthermore,
exports of Somalia depends on mainly living livestock such as camels, sheep, and goats, their
products of hides and skins, butter, bananas, sesame, sesame oil, naturals gum, different types
of fish and aquatic particulars and so on. These are main export items in Somalia. While
Somalia’s main imports consist of as follows: construction materials, food stuff, textiles and
footwear, vehicles, Khat, fuel and petroleum products, pharmaceuticals and hospital materials,
electrics and electronic items, cosmetics and so on. The main ports for trade entry and exit of
the country are Mogadishu, Bosasso, Kismayo and Berbera (Somaliland).
The country’s import was almost three billion US Dollar in 2017 with main trade partners
of China, India, United Arab Emirates, Ethiopia, Kenya, Turkey and Oman while the export was
almost half a billion US Dollar which mostly destined to Oman, United Arab Emirates, Saudi
Arabia, Yemen and other gulf countries.
Somalia’s private sector has grown considerably, particularly in the spheres of trade,
commerce and infrastructure and number of Somali areas have established favorable business
environments that have facilitated investment in sectors including livestock,
telecommunications, and remittances. But this remains limited to address the extreme poverty
facing the country and its people.

METHODOLOGY
An interview methodology is used while deeply questioning ten business experts in the selected
sectors. Five of these experts are business practitioners while others are academic business

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experts who have been teaching and consulting the above mentioned fields of businesses and
investments. The authors have also an experience to witness the evolution of recent business
developments in Mogadishu, the capital city and other three different states of Somalia which
are Southwest, Galmudug and Hirshabelle.

RESULTS & DISCUSSIONS

Current Roles of Private Sector
Businesses have been playing critical roles in the Somali community. These roles are deeply
discussed below:
1. Provision of Goods and Services: private sector in Somalia has been satisfying the
demand of the society in last three decades. In the goods market, it provides light
domestically manufactured goods while importing non-locally-produced goods to Somalia;
however, there are few exporting items to mostly gulf countries. And in the services market,
it has been providing to the society financial - money transfer & banking – services, local
and abroad transportation, logistical, freight and shipment services, telecommunications and
e-money, construction, hospitality, health, education and technology requirements. These
business activities have been vital and key drivers to the country’s informal economy as also
reported by (IMF, 2019).
2. A Source of Livelihood & Job Creation: businesses in Somalia create economic
opportunities and greater wealth and also act as the biggest employers in urban areas.
However of having informality in the labor and production market, private sector employs a
huge number of skilled labor forces either through working in others’ business entities or
self-employment in their own small businesses. In Somalia, micro and medium scale shops
form a vital source of livelihood to many families in urban areas while in rural, agriculture
and livestock resources act this role. Businesses assist the society to continue in a welfare
living through creation of employment opportunities.
3. Contribution to the reconstruction, peace building and recovery: business sector are
actively participating the reconstruction and peace building in Somalia in general and
Mogadishu in particular. They participated in rehabilitation of the roads, construction of
business centers, resorts, hotels and investing numerous viable businesses. Not only the
physical construction, they have also contributed to building a technological infrastructure,
ICT solutions and building human capital since the education and health services were
privately provided in last two to three decades. Private sector has also contributed to conflict
resolution while encouraging parties to skip from conflicts pursuing their own business
development and creating a safe environment for their activities.

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4. Enhancing and Facilitating Trade: traders have been taking goods to and from Somalia
since long time. For satisfying the society demand that exceeds the domestic production,
traders have been importing goods from global accessible markets; also named as trade
partners. The key importing goods have included food stuff, Khat, petroleum products,
vehicles, electronics, textiles, cosmetics, construction materials and plastics while exporting
items are livestock, few agricultural products, incense, precious stones and metals. Top
important partners are United Arab Emirates, Ethiopia, India, China, Kenya and Oman while
key export partners are Saudi Arabia, Oman and United Arab Emirates.
5. A Revenue Source for the Government: in the last six years, businesses have been
paying different types of taxes to the governments in both national level and subnational
level. However, of that their revenue funding to governments were lower than legally
required, their contribution is significant compared recent history of the civil war. The
government wishes to continue domestic revenue mobilization and increase collecting taxes
from the businesses through expanding the tax base in both horizontally and vertically. See
(Isak, 2018) and (Mohamud & Iask, 2019).

Current Challenges
There are some pressing challenges in which the private sector has been operating. These,
among others are some existing challenging factors:
1. Weak legal and regulatory framework: In almost two decades of the civil war period, there
were weak governments which were characterized with a limited power and significantly
weak institutional capacity. This has caused inability of the governments to balance the
market through regulations and businesses to informally work in the market without
government involvement in almost the entire business activities. The regulatory framework
could also manage to overcome the massive violations against property rights.
2. Existence of monopoly in some sectors: a monopoly market system exists in Somalia, as
a huge number of the population can buy goods and services only from few sellers in the
market and so; a barrier to the market entry significantly exists. A self-established monopoly
or oligopoly type of companies dominated the goods and service markets based on the
access to power in the environments of performing their businesses. Due to absence of
competition, the monopolistic featured market poses consumer exploitation, poorly provided
services, discriminated or higher prices and also a wide production of inferior goods.
3. Working in a challenging environment: Somalia has been in an environment of having a
challenging security and political instability as found also by Invalid source specified.. The
business sector has also been working in such pressing challenges as stated by the study of

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(Hassan, Mohamed, Isak, & Mohamed, 2018). They stated that the private business
communities invested some African and Asian countries due to lack of secure environment
in their land of Somalia. The country is characterized by vulnerable economy, in which most
of activities are happening out of government framework, a political fragility and a limited
security power of the federal government are still significant sources of risk to the expansion
of the investments outside urban areas and business developments in general.
4. Doing business at high cost: Compared to other countries in the world and also the
region, Somalia had the lowest score of annual doing business report by the World Bank
(2019). Private sector meets huge challenges in their way to establish, get necessary legal
documents to operate and provide goods or services to the market. This also exists most of
Sub-Saharan countries. The absence of credit provision, high cost of electricity, risk of
trading across borders with possibility of multiple payments and presence of insolvency in
small scale businesses create high level sustained constraints threatening the
developments of the private sector.

CONCLUSION & RECOMMENDATIONS

This paper aimed to explore the recent developments of private business sector in Somalia. The
study has selected some major business sectors including telecommunication, financial,
transport, trade, manufacturing and infrastructure. The main reason beyond selection of these
sectors is the fact that these sectors were leading the growth and economic contribution to
Somalia in general and urban areas in recent period of time.
The study revealed that private sector contributed to Somalia economy in several ways
such as: enhancing and facilitating trade, contribution to the economic recovery, a source of
livelihood & job creation and provision of goods and services.
Somalia is on its way to economic recovery and is huge potential market for most of
modern services. The country is aiming to exploit the natural resources of petroleum and
fisheries while the agriculture and livestock require a very sophisticated production activities and
huge investment in both domestic and international levels. Based on this aspect, business
related legal reforms and establishing an attractive environment will create a good opportunity to
investors and business sector.
This paper is recommended for both business and private sectors of Somalia to take part
the growth and investment on new and existing businesses through technology since it is good
for the country’s economy. The study recommends to competent authority, to better manage the
business sector and strongly institutionalize the necessary government organs to regulate the
market while pursuing a proper policy reforms to maintain the market in economically

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equilibrium and avoid of consumer and labor exploitation and to keep rule of law is an important
factor that could encourage the business creation. It also recommends creating a safe and
secure environment for both domestic and foreign investment, improve country’s infrastructures,
develop an effective market policy and government regulations towards market while targeting
eliminating the challenges. While we have not seen a similar study in Somalia only this study is
not enough in the area and we recommend father research on the Private Sector Developments
in Somalia as we see this sector makes daily improvement compared to previous time and we
wish many studies related to this area will come up solutions about the challenges of the
Somali’s business and will facilitates to attract foreign investment.

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