Eastleigh Business Community members attend launch of Somalia’s $3.5 billion project

Kenyan investors under the Eastleigh Business Community were on Thursday in the Somalia capital Mogadishu to attend the launch of a multi-billion-dollar investment project that aims to transform the Horn of Africa country into an economic hub.

Somalia aims to transform itself into a major trade and aviation hub in the region with the launch of the ambitious $3.5 billion public and privately funded new economic zone which includes the construction of a new airport and seaport in the outskirts of the capital Mogadishu.

Eastleigh Business Community Chairman Ahmed Abdullahi Yare led the delegation of 27 Kenyan businesspeople to the launch.

Dubbed the New Mogadishu Development Corporation (NMDC), the multi-billion-dollar project is to be funded through an initial public offering (IPO), currently at $35 per share and with around 100 million shares at stake, was officially unveiled on Thursday by President Hassan Sheikh Mohamud in a colourful ceremony in Mogadishu.

The ceremony was attended by hundreds of Somali people, the top 100 companies in Somalia and regional and international investors including some from Kenya as well as foreign envoys based in Somalia.

The decision to build a new airport and seaport in Somalia has been informed by the growing economy as the country continues to attract major investments.

The country is slowly reeling back from years of civil unrest and destruction, with its public infrastructures badly needing a facelift.

Peace and stability

The relative peace and stability the country now enjoys has seen growing business and investment interests and an enormous global interest in tapping into its huge economic potential and natural resources. Somalia has one of the longest coastlines in Africa and the country recently started prospecting for oil.

The current Aden Adde International Airport is congested, with no room for expansion even as over 50 daily flights come and go. This is why the country is starting these large-scale projects like the new airport, seaport and a free specialised economic zone.

These infrastructure projects are being put up at a location 35 km north of Mogadishu, along the seashore with new roads to be paved, and a new Mogadishu city to emerge from the project designed to attract foreign investments, create jobs and bolster Somalia’s economy.

President Hassan welcomed the investment initiatives and said it would create jobs and spur development and promised his government’s full support to ensure its full implementation. He said such ambitious projects show the country is developing and growing and that investors have confidence in the country.

“New Mogadishu Development Corporation which includes a new airport, seaport and an economic zone is a partnership between the public and the private sector and we want local, regional and international investors to take part. I want to urge our people to buy the shares now,” President Hassan said in his keynote address.

Speaking to The Eastleigh Voice, Minister of Transport and Civil Aviation Fardowsa Osman Egal said Somalia's public infrastructure expansion projects like the airport and seaport are needed since the population has expanded, and Somalia is becoming a favourite foreign destination due to its attractive investment opportunities.

“As a country, we badly needed to expand our public infrastructures like the airport and so we are very excited and happy that we have today finally launched the New Mogadishu Developing Corporation projects which include the construction of a new Mogadishu International Airport at an initial cost of around $600 million,” Minister Fardowsa said.

She said the funding will come from both public and private partnerships and that the investment is a lucrative one since they have been receiving numerous requests from major airlines that wish to start flying into Mogadishu but due to the congestion at the current airport, it has not been possible. She said the new airport will open the country for more investment and opportunities.

“Somalia’s population is expanding very fast and as you can see, Mogadishu city is also growing very fast. We are happy to welcome foreign investors, and particularly the Eastleigh Business Community who are our brothers from Kenya. We urge Somalis to invest back home and help rebuild their country,” she said.

Kenyan investors

Eastleigh Business Community Chairman Ahmed Abdullahi Yare pledged the support of Kenyan businesspeople to invest in the new lucrative mega infrastructure development in Somalia.

“We wish to share our secrets with you as the Eastleigh Business Community. We have managed to build Kenya and Nairobi largely due to our model of doing business which is based on trust. Our strength is in our partnership and the only way Africa can grow is through such similar public-private partnerships,” Ahmed said in his keynote speech.

Since Somalia's Cabinet earlier this year passed the public-private partnership (PPP) bill, the country has gone big on private collaboration.

Just this week in Mogadishu, President Hassan inaugurated the Gateway Complex, a landmark PPP development project which will house Somalia’s first five-star hotel, a 500-capacity international convention centre, a 300-bed capacity modern hospital, a premium school and other social amenities.