Turkish company Favori took over the operational rights of Mogadishu’s airport four years ago. This was part of several foreign direct investment agreements negotiated between the two governments to redevelop Somalia.
Somalia has long relied on their essential traditional resources such as livestock and local sectors for survival since the collapse of the former military government in 1991.
Turkish foreign direct investment has had a positive impact on social and economic aspects in many parts of the country in general. In the capital city, their companies are involved in projects to reconstruct the hospitals, educational institutions, government buildings and they have played a vital role in the country’s growing stability.
This has however encouraged many countries and international private enterprises, who see Somalia an exciting destination with many opportunities. Somalia is abundant in minerals, natural resources, uranium, untapped reserved of ore, tin, and gypsum. Many outsiders want to join the investment powers in this transitional period for the revitalized foreign direct investment.
The Turkish company paved the way for more greenfield projects all over Somalia, a country open and eager for new businesses and investment.
Lack of private sector engagement or offshore activities over two decades due to civil war, an absence of institutions or efficient central government had previously caused a significant decline in investment cooperation with the rest of the world.
Somalia boasts a coastline of 3,024 km, and Africa’s most abundant land of 637,657 square km (source world-meters). The country has large agricultural resources irrigated by two rivers, and can reach its economic potential and growth through sustainable projects.
The latest report about Somalia’s GDP by the world bank group highlights the double-digit growth which is mainly due to the recent direct investments with the help of private stakeholders’ collaboration, a noteworthy achievement.