Somalia has moved beyond the early stages of post-conflict reconstruction and must now focus on attracting investment, expanding domestic production, and unlocking its natural resources. President Hassan Sheikh Mohamud made these remarks at an event centered on investment and economic development. He emphasized that Somalia needs to build confidence among domestic and international investors. This can be achieved with greater security, stronger institutions, and a predictable business environment.
President Hassan Sheikh highlighted that investment cannot come without confidence. His government is working to improve security, the rule of law, and the regulatory environment. He also called for measures to encourage Somalis who moved capital abroad during decades of conflict to reinvest in the country. This initiative aims to boost economic growth and development.
Economic development is central to Somalia's state-building agenda. President Hassan Sheikh linked stronger economic activity to security, governance, and public services provision. He urged government institutions responsible for security, justice, and economic management to work more closely together. This collaboration is crucial for achieving economic growth and stability.
President Hassan Sheikh's administration aims to reduce Somalia's dependence on imports by developing domestic manufacturing, increasing production, and expanding exports. To achieve this, Somalia has taken steps to strengthen its investment framework. In 2023, Parliament approved an Investors and Investments Protection Law, providing protections for domestic and foreign investors.
The law includes provisions covering expropriation, capital transfers, and dispute resolution. Parliament subsequently passed a new investment law in 2025. Legislation enacted in December 2025 established the Somalia Investment Agency and National Investment Council to promote and regulate investment. These measures aim to create a favorable investment climate.
Despite regulatory reforms, Somalia continues to face challenges in attracting substantial foreign capital. The country contends with insecurity, weak state institutions, and limited capacity to enforce commercial laws and resolve disputes. A US State Department investment assessment noted that institutional weakness and security concerns remain significant challenges for investors.
President Hassan Sheikh emphasized that Somalia cannot fully exploit its economic potential using domestic resources alone. The country will need foreign capital, technology, and expertise to drive growth. His administration has placed economic diversification and private-sector investment at the center of its National Transformation Plan for 2025-29. This plan aims to transform Somalia's economy and achieve sustainable growth.
Key points
- President Hassan Sheikh Mohamud calls for investment push to drive economic growth in Somalia.
- Somalia has taken steps to strengthen its investment framework, including the approval of an Investors and Investments Protection Law.
- The country faces challenges in attracting substantial foreign capital due to insecurity, weak state institutions, and limited capacity to enforce commercial laws.
