Somalis are really great at investing and building new businesses due to qabil, you can have a bunch of people put forward a bit of money to help you start a company. What if we expand upon this and build a Somali wall street where you can list your buisness and any Somali can put lacag forward to help your buisness grow. We need a new class or wealthy capitalists to take form in Somaliweyn the current career politicians are too buck broken and submissive. Real aggressive buisnessmen would have an interest to industrialise country whatever the cost.
Somali Wall street
- Thread starter Khaem
- Start date
TheLand
VIP
What you are suggesting is basically a Somali public equity market. How would you ensure there is no fraud? You would first need accounting standards and auditing firms to ensure everything is as it seems, otherwise what you are suggesting is basically a casino sxb. There needs to be trust and accountability first somehow is basically what I’m saying. Laws, trustworthy judicial system, independent auditors, etc. It can be done though.
Somali society is relatively trustworthy, there is accountability to some degree. If there was none then you wouldn't have Somalis with nothing to their name being able to build businesses since they are funded by multiple people who get paid back.
A massive problem though is courts work on qabil politics which is the only issue, it would basically force a Somali looking to invest to Only buy shares of companies owned by his fellow clan members which would ensure he doesn't get ripped off. Or his clan is powerful enough that there would be consequences for fraudsters. One thing I give to AS is their Sharia courts are efficient. Having Islamic courts across Somalia would solve alot of the issues you pointed out and make society more cohesive and high trust.
There should be work done of course , but the potential for this system is there.
Somalis already kinda informally do this all the time. It's very common for odays or generally people who are well off back home to invest in youngins they believe in and their business ideas. There's even another form of this ingrained in our culture called "Hagbad" where folks come together and pool cash together for someone in need in the community like if someone needs help with their kid's schooling or paying their rent or supporting a failing business. You're expected to pool in more depending on your income. Being communal about money isn't foreign to Somalis, particularly fobs and the older generation in the qurbo.
Yeah so formalising the process and making it centralised like wall street in America would lead to unimaginable wealth creation in Somalia it would literally change the country forever if done right. How many multinational companies can spawn from such thing.
We'd have our own world class tech giants, airlines, oil corporations, media ect. Anything is possible.
There is actually a Somali stock exchange headquartered in Garowe founded in 2015 with the aim of fostering economic and private sector growth.
But it's still a new thing that hasn't fully taken off.
www.sse.so
I personally i think they should relocate it to a more commercially driven location like Mogadishu and create business district anchored on a Somali Wall Street like you said.
I support their vision though
But it's still a new thing that hasn't fully taken off.
Somali Stock Exchange
The Somali Stock Exchange (SSE), founded by the Somali Economic Forum (SEF), aims to attract Foreign Direct Investment (FDI) and promote private sector growth in Somalia's emerging economy.
I personally i think they should relocate it to a more commercially driven location like Mogadishu and create business district anchored on a Somali Wall Street like you said.
I support their vision though
Somalia is too corrupt for any sort of investment like this to happen and all of the clan states are too poor to build their own version.
The private sector has low corruption , it's only the public sector that has widespread corruption
Somalia Vision for Private Sector Development Report
Somalia has one of the highest business process ratings in the region.
Somalia has the highest Business Process ratings in the regions
Somalia performs relatively well in ensuring legal agreements are honored and disputes are resolved more effectively compared to the Sub-Saharan Africa average.
Also Somalia is not to poor to build anything billions of dollars of transactions happens every month within the country.
The mobile money transactions is around 2.7 billion a month.
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