IV Investment opportunities in agriculture

Welc t S me m li

The Federal Government of Somalia, through the Ministry of Planning, Investment, and Economic Development (MoPIED) and the National Investment Promotion Office (SOMINVEST), places the agriculture sector as one of the highest priority investment areas due to its contributions to the socio-economic development and livelihoods of the country.

SOMINVEST recently developed the National Investment Promotion Strategy (NIPS) to provide clear and comprehensive investment guidelines in key sectors of the economy, including the agricultural sector, whose share of GDP has risen significant y from its pre-war levels of about 62 percent to 70 percent. Before the State collapse, the crop subsector was the second largest contributor to GDP and exports, after livestock.

The NIPS has been strategically aligned to Somalia’s National Development Plan (NDP), which is the overarching medium-long term development and poverty reduction strategy. The plan sets out our government’s agricultural transformation agenda by guiding the process by which Small-Medium Enterprises in agriculture could shift their activities from subsistence-oriented towards more specialized and market-oriented production.

Moreover, the National Investment Promotion Strategy embraces an Enterprise Driven Development (SEDD) approach, which fosters business capabilities to deliver solutions and economic value through partnerships between the government, private sector, and international cooperations. It underpins the principles of Global Sustainable Development Goals (SDGs) for inclusive and equitable growth as well as food security by prioritizing investments in Somalia’s productive sectors, identifying investments at the sector and subsector levels while promoting the attraction and retention of deliberately targeted investments, that is the anchor and ancillary investments, as catalysts for economic development.

Successful implementation of the NIPS will entail close coordination and collaboration between all stakeholders and proper harmonization of investments and alignment of programming. Vital programs like the GEEL project should also be sustained.

SOMINVEST, through the MoPIED, is committed to providing leadership and coordination in the implementation of this investment strategy and will facilitate other stakeholder participation, primarily the Ministry of Agriculture and Irrigation (MoAI), for this vital sector.

In this regard, we invite all stakeholders, including farmers and development partners, civil society, and the 2 private sector, to work closely with the government in driving the NIPS agenda forward. Together, we can transform our Investment sectors, the economy, and the lives of our people. Hassan A. Farah Director – SOMINVEST

$8,900,000 Ha FERTILE ARABLE LAND

3 MAIN RIVERS STRETCHING OVER 2,300km

7TH LARGEST PRODUCER

OF SESAME GLOBALLY

3,333km LONGEST COASTLINE IN MAINLAND AFRICA

81.5% SOMALI POPULATION UNDER 35

600,000 Ha IRRIGATED LAND

Agriculture, the Mainstay of the Somali Economy The agricultural sector contributes 40 percent to the GDP and earns 50 percent of Somalia’s export earnings. The agriculture sector is not only the driver of Somalia’s economy but a top livelihood earner for most of the country’s population. The sector comprises of crop production, livestock, and forestry. Somalia’s agricultural exports are growing, dominated by sesame, lemon, and banana. Why Invest in Somalia’s Economy? There are joint venture opportunities for foreign investors seeking local counterparts. The following factors underpin Somalia’s competitive advantage as an investment location: • Insufficient demand domestic production to meet subsistence Vast Agricultural Land • Available export markets for traditional and new agricultural products • Highly under-invested sector Preferential • • Access to aff ordable labor Oppor tunities for innovation and new technology trials Raw Agricultural Material Trade Agreement: Turkey and Organization of • V ast agrarian land for production and expansion Islamic Union • Regional mark et access through Common Market for

Eastern and Southern Africa (COMESA),

Interg overnmental Authority on Development (IGAD), and World Trade Organization (WTO) Innovation and Technology Investment • Pr eferential trade policies in Turkey and most of the Organization of Islamic Cooperation countries • Pr oximity to the international transshipment lines • Efficient telecom unications system. • Suppor tive and dedicated Investment Promotion Office committed to investor protection and retention, and provision of after-care services

Ubah Mohamed harvesting kale she planted during the agricultural TV competition, Tartan Tacab.