Keypoints:
- Mogadishu hosts major investment forum
- Stock exchange aims to grow capital access
- FDI, green finance, healthcare in focus
SOMALIA’S investment landscape is entering a transformative phase as the country prepares to host the Somali Capital Markets Forum on June 23, 2025 in Mogadishu. Organised by the Somali Stock Exchange (SSE), the event is a strategic move to establish the country as a serious contender in East Africa’s fast-evolving capital markets ecosystem.
More than a routine financial summit, the forum represents Somalia’s ambition to use capital markets as a tool to unlock long-term financing, deepen financial inclusion, and attract both domestic and foreign investment. Amid improving macroeconomic indicators, Somalia is keen to reposition itself as an emerging frontier market.
Stock exchange at the centre of reform
Established in 2015 by the Somali Economic Forum, the SSE has made quiet but meaningful progress. With operational centres now in Mogadishu, Hargeisa, and Garowe, the exchange serves as a formal platform for investment, offering regulated alternatives to informal and often riskier capital flows.
Hassan Dudde, CEO of the Somali Stock Exchange, sees the upcoming forum as a defining opportunity: ‘Our goal is to bring capital market issues to the attention of investors, regulators, and financial institutions through meaningful dialogue. We want business and finance to work together to transform the economy.’
The SSE’s mission is aligned with broader national goals: reduce aid dependency, empower the private sector, and enhance transparency in financial transactions.
Regional momentum, Somali ambition
Somalia’s push comes at a time when East Africa is witnessing a capital markets revival. Ethiopia has recently launched its own securities exchange, while Burundi is also laying the groundwork for one. The Somali initiative fits neatly into this regional narrative, but with a distinct emphasis on local ownership and resilience-building.
By creating its own capital markets framework, Somalia aims not only to attract investment but also to develop a formal mechanism for capital mobilisation, especially for small and medium-sized enterprises (SMEs) and large infrastructure projects.
Infrastructure and policy partnerships
One of the government’s major objectives is to attract capital for infrastructure, building on the success of the privately funded Garacad Port. This high-profile project has shown what’s possible when domestic capital and private enterprise align.
Senior officials, including Hirsi Ganni, Minister of State in the Office of the Prime Minister, are expected to participate in the forum.
Ganni noted: ‘Under the National Transitional Plan, we must expand all sectors of the economy. Public-private partnerships will be crucial for delivering sustainable growth and economic resilience.’
Forum themes: sustainability, healthcare, and finance
The 2025 forum is expected to focus heavily on green finance, healthcare investment, and the evolution of Islamic finance as a cultural and strategic asset. These sectors are viewed as both high-impact and under-capitalised, offering strong returns alongside social value.
With climate change intensifying across the Horn of Africa, sustainable finance tools such as green bonds and climate-linked investment vehicles are increasingly relevant. Meanwhile, healthcare—long underfunded—presents opportunities for ethical and socially responsible capital to make a difference.
Islamic finance: a natural advantage
Adding strategic depth to the event is its partnership with the AlHuda Centre of Islamic Banking and Economics (CIBE). With over 15 years of experience across the UAE, Pakistan, South Africa, and other emerging markets, AlHuda brings deep expertise in Sharia-compliant finance.
For Somalia, where the majority of the population prefers interest-free finance, Islamic financial instruments such as Sukuk (Islamic bonds), equity financing, and micro-Takaful insurance offer practical models for expansion.
Start-up scene and FDI outlook
Somalia’s private sector is showing signs of traction. FDI inflows grew 10.5 percent in 2024, and with GDP growth of 3.7 percent last year—set to rise to 3.9 percent in 2025—the broader investment climate is improving. Start-ups in fintech, logistics, and agriculture are beginning to attract regional interest.
The SSE is positioning itself as a gateway for these businesses to access structured finance, while also providing foreign investors with a way to enter Somalia’s economy in a regulated manner.
Bridging the investment gap
For now, Somalia’s capital markets remain small, but initiatives like the Somali Capital Markets Forum are helping close the gap. The challenge remains how to scale up while maintaining local integrity, regulatory robustness, and investor confidence.
Solutions include:
- Establishing clear financial laws and market oversight frameworks
- Promoting digitisation of capital markets
- Creating credit-rating tools for SMEs
- Leveraging diaspora investment channels
The forum provides a space to discuss these and other innovations.
A turning point for Somali finance
As Somalia hosts one of its most high-profile financial gatherings to date, the message is clear: the country is open for investment, and it’s building the tools, platforms, and partnerships to prove it.
The Somali Capital Markets Forum is not just about convening stakeholders—it is about shaping the future of how finance works in Somalia. With the right investment frameworks, public-private collaboration, and emphasis on inclusion and sustainability, Somalia could become a standout story in Africa’s investment renaissance.
