Somalia has gone through a lot of political strife, hence businessmen are advised to be very cautious if they want to invest and start businesses in Somalia. Political strife in the country and fake currency rackets have been a major deterrent for investors. In addition, the long standing problem of pirates has made businessmen even more apprehensive, which in turn has damaged the economy of Somalia significantly. The constant change of governments and lack of natural resources are among the major challenges faced by the country. The lack of major developments has also hindered the progress of business.
Dwindling export as well as import activities, and trade imbalance haven't created a sound investment climate for businessmen to set up shop in the country. New entrants as well as global giants are apprehensive to start a new venture due to this instability. Somalia is not considered as a proper and safe investment hub because its history has been marred with various kinds of disruptions. However, over time, now things are looking much better. Businessmen can start businesses in Somalia without fear if they stick to a few guidelines and go about it the right way.
- Collect information on the cultural, economic and political specifics of the country before investing in Somalia. Understand every aspect of commercial dealings what type of profits you can expect. Avoid getting into trouble with the locals by understanding the social and business etiquettes. Things are not the same in Somalia as they are in Europe especially when it comes to starting a business.
- Understand customer behavior and preferences in order to serve the people of Somalia in a better way and also help you in designing your product and service in such a manner that it interests the target audience.
- You should also understand the factors that affect the economy of Somalia before starting a business there. Collect information on key industrial sectors of Somalia, its currency, government, nature of economy and trade activities. You can carry out your export and import business without any hassle if you have knowledge of trade agreements. Learning about the stock exchange markets and other internal financing activities of Somalia will also be helpful.
- Always follow the official norms when setting up any type of business in Somalia. You may get into trouble if you flout the norms. Learn the rules for initiating a new venture in Somalia.
- Do not hesitate to consult an expert for his opinion on investing in the type of business you desire. If you have any contacts with people in the Embassy of Somalia, the Somali Chamber of Commerce and Industry or any other administrative organization, do not hesitate to consult them. The embassy is a good source of information for business related matters. You can use these contacts to get your work done quickly and easily.
- Highlight the commercial and social benefits of starting a business in Somalia to the Somali Chamber of Commerce and Industry so that they allow you to start your business in Somalia. The agricultural industry is one area which many look at as a wise investment in the country.