Trade Invest Somalia met business leaders to the UK-Africa Investment Summit eyeing investments on the Banking, Minerals, Energy and Agricultural sectors. The historic summit brought together at least 20 African Heads of State, ambassadors, high commissioners as well as captains of industry.
After Brexit, the UK wants to boost business trade with Africa and Somalia stands in pole position as a new frontier market with huge potential. Much of the focus of the summit was based on continued trade and multilateral deals between established African giants Nigeria, South Africa and Egypt.
Prime Minister Boris Johnson has emphasised the idea that the UK is an ‘obvious partner of choice’ for Africa, highlighting financial services in London, tech innovation, security co-operation and the UK’s higher education sector.
Somalia’s post-HIPC meets UK’s post Brexit
Focus on UK-Somalia trade and investment comes at pivotal time, Somalia Debt Cancellation (HIPC initiative) ends in February 2020, thereafter, Somalia is earmarked to boost social spending, with expected increased expenditures on health, education, and other social services, unleashing the Somali economy. UK-Africa summit has highlighted the desire of the UK to take advantage of leaving the EU to secure trade and investment opportunities in Africa and in particular Somalia’s fast recovery.
A decade ago UK was the most carbon heavy nation in Europe and today, it’s a world-leader in offshore wind. Somalia has the longest coast in Africa and needs to provide the energy needed to support development at an acceptable cost and ensuring that it is used efficiently from renewables than from fossil fuels.
Prime Minister Boris Johnson has emphasized the need to encourage countries like Somalia to focus on supporting the transition to lower- and zerocarbon alternatives. Additionally, Somalia requires UK expertise to extract and use oil and gas in the cleanest, greenest way possible.
Somalia’s Banking & Financial Sector Reform
The City of London will play an even greater role in financing the fastestgrowing economies across Africa. Britain is a leading global hub for FinTech, which contributes over £5 billion to the UK economy every year. Somalia’s strong commitment to implementing critical reforms to strengthen the functioning of the Central Bank, its governance and to promoting financial sector development has been praised by International financial institutions and has led to the successful completion of Debt Cancellation Initiative.
As the UK has announced plans to issue a new set of coins to mark Britain's exit from the European Union, The preparatory work to launch a new Somali national currency is also in its final stages.
Somalia’s Roadmap of increasing Central Bank capacity, robust payment system, legal and regulatory reforms and strengthening financial intermediation has also received endorsement from the International Monetary Fund and Somalia’s economy is on the right track for sustain growth above expectations.
Trade Invest Somalia.