Updates

Shuraako congratulates the Somaliland Ministry of Trade and Investment for the launch of its first ever Investment Guide, an innovative online tool, created with support from USAID Partnership for Economic Growth. The Guide was introduced alongside the Ministry’s newly established Investment Department on the 16th of November, 2013 and is an indication of the increased stability and economic opportunity within the region.

“The creation of this document and web portal is a signal to local, diaspora and foreign investors that Somaliland is ‘open for business,’” said President of Somaliland, Ahmed Mohamed Mahamoud (Silanyo). “My government is committed to creating a business enabling environment that encourages innovation and fosters local and international linkages to expand market opportunities, while protecting investor assets.” 

In addition to outlining the process of investing in Somaliland, the Guide also provides case studies on livestock, agricultural, energy, and fishery sectors.  These key areas are where Shuraako has been working to connect promising opportunities with investors.

Shuraako Project Associate, Abdikarim Gole, attended the launch and concluded that it was an essential step in the right direction.

“The Guide is an essential tool that will not only draw investors to sectors that could become high income earners for the country, but also highlights those areas where jobs can be created,” said Gole. “This is exciting for Shuraako, as we seek to make a lasting positive impact in the area of job creation in the country.”

Somaliland continues to make remarkable socioeconomic gains since it was ravaged by civil war two decades ago.  The Guide shows how Somaliland has progressed from a post-conflict situation to a state of political stability and sustainable economic development with many untapped opportunities.  To explore the Guide visit http://www.somalilandinvest.net.

We've recently updated our interactive aid flow map with data through the end of 2012.  Map data and the accompanying agency reports come directly from the United Nations’ Office for the Coordination of Humanitarian Affairs - Financial Tracking Service (FTS) website.

 

 

Recently some major UK banks announced that they will be closing the bank accounts of many Somali Money Transfer (SMT) companies, citing regulatory concerns related to the financing of terrorism and money laundering. This is a worrying development that will have serious impacts on financial flows into Somalia, where 40% of the population receives money through SMTs.
 
Shuraako understands that SMTs may seem complicated and difficult to understand. So we have created a resource library about the sector, its role and size, and some concerns related to the recent banking issue. We hope it will be a useful tool and introduction to the sector for various stakeholders.  For those looking for an introduction to financial regulations related to the remittance sector, please see our new two page brief on the major financial regulations
 
Ensuring the continued flow of money into Somalia is a global issue, that requires a global solution. We welcome cooperation from all affected stakeholders on this important issue.  Please do not hesitate to let us know if you have any comments or questions on any of the above. 

 

by Jim Burman, Shuraako

The government framework for banking in Somalia was largely destroyed during the conflict of the last 20 years. The civil war also forced hundreds of thousands of Somalis to leave and start new lives abroad. As they became settled, many sought to send money home, and a growing group of Somali entrepreneurs worked to facilitate these transactions. With no banks in Somalia to receive outside wire transfers, these business people established their own systems for getting money into the country.

Full Report

 

Family Ties: Remittances and Livelihoods Support in Puntland and Somaliland

by Food Security and Nutrition Analysis Unit - Somalia, FAO United Nations

Remittances provide an essential lifeline to both urban and rural Somali households for their most basic needs, including food, healthcare and education. Despite the importance of remittances, there are some vulnerabilities in the system, related to the heavy reliance on a single relative to provide support and the fragility of the remittance industry itself. In addition, remittance companies are sometimes subject to having to suspend their operations in areas where banking counterparts are not willing to work with them.

Full Report

 

United States Anti-Money Laundering Regulations and Combating the Financing of Terrorism

by Kaija Hurlburt

Estimated to be valued at more than $1 billion annually, remittances are roughly four times the amount of official development assistance funds provided to Somalia, and are the key source of foreign exchange in the country. However, there are regulatory challenges that threaten to limit the flow of remittances to Somalia. Many banks have already stopped providing services to Somali remitters. This paper outlines those regulations and their impact on Somali remitters.

Full Report

 

Cash and Compassion: The Role of the Somali Diaspora in Relief, Development and Peace-building

By Laura Hammond, Mustafa Awad, Ali Ibrahim Dagane, Peter Hansen, Cindy Horst, Ken Menkhaus, and Lynette Obare

The United Nations Development Program details how money and knowledge transfers by Somalis living abroad act as the principal lifeline for a range of crucial economic activities in Somalia.  

Full Executive Summary

Full Report

 

For more remittance publications please visit our Industry Analysis page.

 

 

Pages