In this era of global uncertainty, Somalia has become one of the least effected countries in the world. This is largely due to the Somali authorities’ efforts in early preventive measures. For instance, the country went into full lockdown soon after the first case of Coronavirus were confirmed on 16th March 2020.
Similar to other countries in East Africa, the authorities made sure to ground all flights from badly affected regions such as Europe. At the beginning of this pandemic, Somalia’s government made sure to indefinitely ban all international travellers and tourists from entering Somalia. The most concerning direct flights were from Europe and other western countries as the Western states were greatly impacted by the pandemic. Also, the world’s richest country, the United States of America experienced the largest number of deaths in the world with 125,000 and counting followed by the United Kingdom with 44,000 deaths. Other countries that experienced high death rates includes Italy and Spain despite claiming to have the most advanced public health systems in Europe. Globally more than 80% of global deaths took place in North America and Europe. Despite originating in China and Asia, the vast majority of new and lethal cases has been disproportionately represented by Europe and North America. In contrast, the African continent has proven to be a success story in terms of how the countries have handled the pandemic.
As the country is slowly getting back to business, the Transport and Civil Aviation Minister permitted local flights to resume on the 8th June and plans had been finalized to open the airspace for local flight. Of these, five airlines have been cleared to resume business, but all passengers will be subjected to screening outside and within the airport. Members of the public have praised these measures; “what saved us is that we have closed our borders to Europe and Asia, I am satisfied with what our leaders have done” says Abdi Hussein, a local businessman.
The Coronavirus Pandemic is slowly easing itself in Somalia. This is due to a combination of public health interventions, social distancing measurs and active public engagements where daily updates were televised nationwide. Today, life is coming back to normal for most people and non-essential businesses are once again opening their doors to the public. Despite this, public gatherings in Masjids and sports events are still not opened as of yet.
Mohamed Hassan Mehdi the CEO of Pure Earth International, the largest retail tech business in Somalia, trading at $25 per share at Somali Stock Exchange stated that “we are opening all our retails branches nationwide on 10th June keeping the safety of our customers in mind. Surely, the economic impact of the lockdown is substantial, but we are trying to make the most of the rest of the year.”
As the lockdown eases in many countries we are seeing positive signs, but the post pandemic landscape will have its own, inherent challenges. For instance, Somalia’s GDP is expected to grow by 3.5% in 2020. The Somali Stock Exchange opened its doors again on 7th June and the market is expected up pick up briskly in the intervening period.
A positive thing that emerged from the pandemic is solidarity as large Somali companies such as Golis, Hormuud and Dahabshiil to name a few have donated millions of Dollars to the fight against the spread of coronavirus. This type of corporate social responsibility has also inspired many young entrepreneurs who have served to fill the gap in terms of manufacturing facemasks and PPE equipment. Mahammed Adawe, a 21-year-old Somali mechanical engineer has invented a respirator to try to help the country during the pandemic. More than anything, these examples show that the nation can overcome any challenges when due to the innovative and entrepreneurial nature of our population.
Date: 10th of June 2020
As we welcome the blessed days of Eid, from everyone at Somali Stock Exchange, we would like to wish you and your family Eid Mubarak!
We hope you have a peaceful, happy and festive time at home with your loved ones.
May Allah bless you all.
Please note that the Somali Stock Exchange (SSE) has taken some precautionary measures regarding the spread of the coronavirus COVID-19. The government health authorities have been asked to share the message hereunder with all visitors and external participants of the capital markets in Somalia.
As you may know, the novel coronavirus COVID-19 has now also reached Somalia. Some regions which are not yet affected have started to report any possible cases of coronavirus and urged the public to be ready for it.
As a precautionary measure, if you have travelled to one of these affected areas within the last 14 days, or recently have been in contact with persons from such areas, we would kindly ask you to reschedule your visit to the Somali Stock Exchange offices to a later time. We would advise our members and listed companies to take same actions by advising their visitors and guests to postpone their visit. This would help us greatly to play our part in preventing the spread of the virus in Somalia.
Please note that these measures are only temporary. The SSE is monitoring the situation and will adapt its measures accordingly.
For more information about #coronavirus please visit: www.who.int/COVID-19
The Somali Stock Exchange (SSE) has just joined The Organisation of Islamic Cooperation Exchanges Forum (OICEF) as a corporate member and the move was highly welcomed by the host and prominent members of the club, as they see Somalia as strategic importance to the countries exchange growth. The Somali Stock Exchange (SSE) becomes the 41st member of The Organisation of Islamic Cooperation Exchanges Forum (OICEF).
The 57 member states contribute around $6.4 trillion to the world’s gross domestic product (GDP) in 2016 according to data from the World Bank, accounting for 9% of the World’s GDP.
The aim of the OICEF Exchanges Forum is to improve the Islamic financial securities product offering, with a view to learning from one another while providing strategic partnership support to other Islamic exchanges.
Historically, shares in Somali businesses have been bought and sold informally through close networks. However, economists have noted that in recent years, the emergence of various stock exchanges in African states have played a pivotal role in fostering economic and private sector growth plans. The substantial demand for capital is increasing by the day for Somali businesses, consisting of both large firms and SME’s.
According to the latest figures, over 3 billion USD flows into Somalia every year, a large stake of which is aimed solely at business.
Liquidity is an essential element of any industry, but it’s impossible to create it without a viable market, which is why the Somali Stock Exchange (SSE) was born.
The Somali Stock Exchange (SSE) is creating an entirely new securities market, where buyers of financial securities can do business with sellers in a more organised, secure and profitable way
Their aim is to create a sustainable securities market in Somalia, where holders of financial securities, bonds and buyers or investors can meet and share in long-term growth.
Murat ÇETİNKAYA, CEO, Borsa Istanbul and current chairman of OICEF Exchanges Forum said:
“We are pleased to have the Somali Stock Exchange joining the forum this brings opportunities to Somalia and other member states”
Hassan Hudde, CEO of Somali Stock Exchange Said:
“It is the perfect time for us to join the OICEF Exchanges Forum as we see the trade relations between member states is growing, Turkey and Somalia is a good example of that and we hope to extend that with other member countries”
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The Somali Stock Exchange (SSE) was founded by the management team of Somali Economic Forum (SEF) whose principle aim is to encourage Foreign Direct Investment (FDI) into Somalia’s growing economy.
We are already making history by becoming the first ever stock exchange to operate inside of Somalia with our first shares being sold in September 2015 at the exchanges headquarters.
We exist to drive economic growth for Somalia’s large, Start Up and SME’s companies, transforming our country into a global player, as we assist companies to manage risk, raise capital and grow local and international organisations.
The Organisation of Islamic Cooperation (OICEF) Member States’ Stock Exchanges Forum provides a focused platform and communication channel for representatives of the relevant OIC organizations and institutions to discuss international cooperation activities and offers participants the opportunity to share their experiences. Additionally, the Forum focuses on the efforts towards the work to initiate the groundwork, to harmonise the rules and regulations governing market operations, as well as to open channels through which the stock exchanges may continue to cooperate.
Deepening relations and business links among the OIC member states, with well designed and implemented strategic policies, help us increase the amount of international portfolio investments flowing to our countries.
The Somali Stock Exchange trades its first shares
SEF London - The inaugural Somali Stock Exchange (SSE) began selling its first shares in 1st Sep 2015 at the exchange's headquarters in Garowe, Somalia.
The Somali Stock Exchange was founded by the Somali Economic Forum (SEF) in March 2011 which has as its principal aim encouraging Foreign Direct Investment in Somalia and promoting private sector development.
The Somali Stock Exchange has already made history by becoming the first ever stock exchange to operate inside Somalia.
Historically Somalis sell their shares and invest through the utilisation of familial tie links and through known, close networks. This system of trust is otherwise known as 'Hawala' and has been the foundation of Somalia's multi billion, innovative international remittances sector.
The SSE is projected to grow from strength to strength as there is a substantial capital pool available to the Somali diaspora according to Hassan M. Dudde, the Chairman of The Somali Economic Forum. Previously, these diaspora investors would be forced to invest their capital in other markets, such as Nairobi or Dubai. However, with the emergence of the first Somali Stock Exchange, they can now invest and seek capital investment within Somalia's own borders and main urban centres.
Currently, in its initiation phase, over 20 firms are already listed on the stock exchange as it aims to attract even more firms in the near future. The SSE complimented its launch with a road show, which started in Bosaso, aiming to expand to the leading commercial cities. The SEE also held its first conference at the Puntland Chambers of Commerce in Bosaso during its launch.
Economists predict that the Somali Stock Exchange will expand rapidly due to high levels of demand from the largest Somali firms as well as foreign firms looking to invest in Somalia's ever growing private sector. Also, the SSE is looking to continue its road show with future plans to hold similar investment conferences in Hargeisa, Mogadishu and potentially Kismayo.
We at SEF believe that the Somali Stock Exchange will truly allow Somalis to live up to their commercial reputation as traders and business people, thereby connecting Somalis across the world.