Overview of Somaliland Investment Opportunities:
Based on the Somaliland Vision 2030, the country envisions being a nation whose citizens enjoy a sustained economic growth and reducing poverty levels. The Somaliland Vision 2030 identifies the seven priorities of its economic agenda being Agriculture, livestock and fisheries, Trade and financial services, Tourism, Manufacturing, Mining and extractives, Private sector investment, and Diaspora
According to Somaliland Investment Guide, there are six sectors in the economy which the Somaliland Government regarded as priority sectors for investment, and encourages foreign investment in those sectors
|No||Sector||Investment opportunities include|
|2||Banking & Finance||Modernizing the banking operations, piloting innovative financial services reaching rural and urban areas, expand Islamic Micro-finance opportunities.|
|3||Agriculture||Establish research centers, develop training and extension programs build institutional capacity, improve support services and infrastructure, promote commercial farming and support farmers’ organizations.|
|4||Livestock||Improve veterinary services, add value to livestock exports, improve marketing and markets, establish research centers; explore new markets.|
|5||Fisheries||Establish fish stock in territorial waters, build fish markets, establish cold chain from port to markets, and explore new markets.|
|6||Industry||Promote trade with neighboring countries, establish one-stop-shop business centers, facilitate Berbera Cement Factory rebuilding and build institutional capacity.|
|7||Energy||Promote investment in the energy sector, promote renewable energy, and establish generators with sufficient capacity in urban centers|
For further information of investment opportunities and related regulations, please visit the sites
http://www.somalilandchamberofcommerce.com, http://somalilandinvest.net/, http://somalilandtrade.net/ and particularly read Somaliland Investment Guide which is available online both in Somali, and English versions
Accordance to Somaliland Investment Guide, there is also essential areas the Somaliland Government have the focus for investment priorities, and they are: Roads & Transport, Post & Telecommunication, ICT & Information, and Ports. In further, Somaliland Government is promoting, and encouraging both Foreign and Diaspora Investment in the key areas of Exports, Mining, Tourism, and Civil aviation, Oil and Gas.
Demarcation of investment opportunities into foreign and national investors:
The Somaliland Foreign Investment Law is currently under review, and its development will clearly make demarcation of the two and so that the listed opportunities in the below table is not rigid.
|Opportunities open to the Foreign Investors include the following:-||Opportunities restricted to the Local Investors include the following:-|
|1. Energy Conservation
2. Fish Processing
3. Frankincense & Gums processing
4. Meat, Skin and Livestock by products processing
5. Crop Processing
6. Tourism and Archaeology development industry
7. Export oriented investments
8. Banking and Insurance
9. Micro Finance Institutions
10. Health and Education sectors
11. Real Estate industry
12. Pharmaceutical industry
13. Construction and Building Material industry
|1. Import Trade
2. Wholesale and Retail Trade
3. Bottled Water (Drinking)
4. Tide Powder
5. Soft Drinks
7. Cooking Gas
9. Public Relations Businesses
10. Car Hire and operation of Taxis
11. Postal Services
12. Minerals dealership
Procedure and registration of foreign investment in Somaliland:
Ministry of Investment is responsible for approving and registering all foreign investments into Somaliland including national and foreigner joint ventures. After that approval, the applicant goes on to the process of the business licensing at the Ministry of Trade, Industry & Tourism in accordance with the Somaliland Foreign Investment Law No. 29/2004(& 2008).
- Complete application form at the Ministry of Trade, Industry & Tourism, and submit;
- The Board is the supreme decision maker, and takes decisions by simple majority vote;
- Within 60 days of the application receipt, the Board shall notify the applicant;
- If the application is approved, the Board shall issue “Certificate of Foreign Investment in an Approved Enterprise;”
- The Certificate shall be valid for 18 months within which he foreign investor must invest;
- Any additional investment by the same investor, the investor must apply and seek approval in the same process;
- The investor should submit new application if they want to invest in an enterprise other than the one registered Repatriation of capital and profit.
Foreign investment Priorities and sectors:
According to the Foreign Investment Law No. 29/2004(& 2008), Somaliland Government is giving priority to foreign investments n the following areas where it works to:-
- puts in productive use of Somaliland’s human and natural resources;
- Introduces innovative technology suited to the country’s conditions.
- .Generates new earnings or savings of foreign exchange, through exports, resource-based import substitution or service activities;
- Contributes to regionally balanced socio-economic development, this refers especially to foreign investment in, or closely related to a) Agriculture, b) Livestock, c) Fishing, d) Mineral resources, e) Industrial activities using significant amounts of inputs produced, by afore-mentioned sectors, f) Tourism, provided the investment harmonizes with the prevailing social, economic and infrastructural condition, and g) Any other investment, in production and service activities, suited to support and stimulate, in a significant degree, the development of the afore-mentioned sectors.
Foreign Investment Guarantees:
According to Article 12, under the Somaliland Foreign Investment Law No. 29/2004(& 2008):
- All enterprise object of foreign investment shall receive as favourable treatment as domestic enterprise;
- The property of foreign investment duly registered under this law shall not be subject to expropriation measures, except in the only case where public interest cannot be satisfied by measures other than expropriation;
- In the case of such expropriation, prompt compensation shall be paid. Said compensation shall reflect the fair market value of the assets as freely transferable.
Foreign Investment Incentives:
According to Article 13 under the Somaliland Foreign Investment Law No. 29/2004(& 2008).
- Foreign investment shall be eligible for incentives and facilities, in accordance with the legislation in for ruling on such incentives and facilities;
- Foreign Investment is exempted from payment of tax on profit for a period of three years from commencing operations. In addition, after the expiry of the initial tax holiday period, foreign investors shall be entitled to a 50% reduction of the tax due for the profit reinvested;
- Imported machinery, equipment, installations and any other outfits as well as raw materials, supplies and components imported for production purposes are exempted from import custom duties.
You can also read the process of application and registration of multi type business licenses by visiting the websites of Somaliland Diaspora Agency, Somaliland Chamber of Commerce, and the Ministry of Finance for the levied taxes and tariffs www.sldiaspora.org, www.somalilandchamber.com, and www.somalilandmof.com