The investment landscape in Somalia presents complex challenges that affect economic development and business growth in the country. These challenges include political instability, security concerns, lack of a regulatory framework, and inadequate infrastructure conducive to investment. Corruption and bureaucratic inefficiencies create barriers to doing business, deterring both domestic and foreign investment, underscoring the importance of a strong private sector body to facilitate evidence-based dialogue and advocacy for the private sector, and to support Somalia’s vision of economic growth.
The IFC Investment Climate Reform Project-2 (ICRP2) aims to eliminate barriers to private sector-led growth in a fragile environment by improving the regulatory environment through introduction of new regulations to address regulatory gaps, streamlining of regulations as well as improving trade facilitation through enhanced transparency. Asal was contracted by IFC to provide capacity building support to the Somali Chambers of Commerce and Industry (SCCI) through capacity assessments, a series of capacity development planning workshops, and the provision of legal advisory to enhance SCCI input to legal reforms to improve investment climate. Capacity building activities focused specifically on strengthening and advancing the critical role the SCCI in promoting businesses, advocating for improvements in the business environment and development and creating an enabling environment for investment in Somalia.
Asal’s support strengthens the legal capacity of the SCCI to advance its reform agenda, by enhancing their legal capacity and role in the investment climate reform process. The provision of technical assistance from Asal resulted in increased SCCI participation in PPD Sector Working groups (Energy, ICT and Financial Services) and prepared and guided private sector input to the economic, investment climate and private sector related laws and regulations through SCCI led participation of the private sector in legal and regulatory dialogue with Federal Government institutions. Through this initiative there have been provisions for technical support and training to the chamber's staff and members, with noticeable improvements made in understanding legal frameworks pertinent to business operations and advocacy. These efforts have generated valuable insights into investment opportunities and challenges in Somalia, laying the groundwork for evidence-based policymaking and targeted interventions to promote economic growth and development.
