Creating a stock exchange for Somalia

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Companies will need to have existed for at least two years to qualify for listing as the forum said new startups will be carefully considered since they are the ones in greater need for capital

“Starting from a scratch is not easy but we want to give venture capitalists a chance in Somalia. We will allow investments as little as possible as the idea is to pool in resources and create robust companies that can stand the test of time,”Mr. Dudde said.

“Starting from a scratch is not easy but we want to give venture capitalists a chance in Somalia. We will allow investments as little as possible as the idea is to pool in resources and create robust companies that can stand the test of time,” Hassan Dudde, Managing Director for the Somali Economic Forum.

The listing will be targeting the Telco sector which has largely been considered successful as well as the financial institutions.

Bigger and stronger companies are crucial for achieving the high rates of growth which is necessary to significantly reduce poverty in the country. This will require increased mobilization of domestic and foreign savings to support higher rates of private sector investment.

The financial sector needs to build the correspondent banking relationships necessary for issuing letters of credit, and it needs to provide banking services to the government, Somalia investors, and small and medium-size enterprises.

As a small country with low GDP, Somalia can ill afford to balkanize its economic space. To increase economic efficiency throughout the federal territory, goods, money, and people should be highly mobile. Federal fiscal arrangements should be configured to promote a common domestic economic space to encourage direct investment and an enabling business environment.