Somalia—EU Support to Policy Dialogue on Investment Climate

The European Union (EU) Support to Policy Dialogue on Investment Climate in Somalia project enhanced the investment climate and business environment by improving access to finance, markets, and essential services for medium, small, and micro enterprises (MSMEs).

Our team provided support to reinforce the capacities of key public institutions and the private sector to strengthen public-private dialogue; supported Somalia’s exports and access to regional markets; and promoted responsible business conduct across the private sector.

By improving the policy, regulatory, and institutional environments for investment promotion and facilitation, trade, and value chain development, the project facilitated socioeconomic resilience, especially in the era of COVID-19. We focused in particular on the financial sector, business linkages with Europe, food security, and nutrition.

To better integrate Somalia’s economy in the Horn of Africa, the project encouraged dialogue between Somalis on private sector matters. Our efforts align with the Africa-Europe Alliance on Sustainable Investments and Jobs, the EU External Investment Plan approach (Sustainable Business for Africa Platform–SB4A), and EU economic diplomacy objectives and guidelines.

Sample Activities

• Address obstacles to EU development finance institution engagement in Somalia.
• Facilitate public-private dialogue for innovative financing with an emphasis on group financial products.
• Facilitate EU/Somalia structured dialogue on investment, trade, and business.
• Enhance agricultural inspection and standards for export and food security.
• Support public-private dialogue for a national trade policy.
• Promote investment and trade along the Berbera Corridor.
• Formalise cooperatives for enhanced access to markets and finance.

Select Results

• Conducted the EU Business in Somalia Mapping Study.
• Launched a study on the SME landscape in Somalia focusing on key barriers to growth and recommendations for development finance institution interventions.
• Commenced a study on innovative financing options for non-banking financial institutions with key informant interviews with public and private stakeholders in the financial sector.
• Conducted multiple consultations with key stakeholders, such as the Ministry of Commerce and Industries (MOCI) and the Somalia Investment Promotion Office.
• Supported the Somaliland Quality Control Commission to coordinate a training workshop on investment promotion in Berbera Corridor.
• Developed studies on priority sector investments from the Government of Somalia’s National Investment Promotion Strategy, and ensured alignment to diaspora and foreign investor interests.
• Facilitated efforts to support the development of the EU-Somalia Investment, Trade, and Business Forum.
• Carried out a public-private dialogue training workshop for MOCI staff to establish a common understanding of public-private dialogue fundamentals.