Somalia Stakeholders propose multilateral effort to foster remittances inflow to Somalia for investment purposes
Different Somalia stakeholders are now proposing a multilateral effort in promoting flow of remittances to Somalia for investment purposes.
The propositions came in the wake of a recently held Somalia Stakeholders Session hosted by Pangea Trust, funded by the Swedish International Development Cooperation Agency on Thursday.
Pangea Trust Managing Director Anne Lawi in her welcoming remarks said that there has been an increasing number of potential businesses coming up in Somalia brought about by the increased growing economy.
“Through diaspora remittances investment opportunities, we see the potential to increase the share of remittances set aside as investments to 25%-30% percent by 2010,” said Lawi.
The event created a platform to revolutionize the financing of start-ups, giving the diaspora the opportunity to become a major player in the ecosystem.
During the event, Silicon horn co-founder Awil Osman said that there is a huge opportunity with the growing tech ecosystem in Somalia and the return of diaspora to fuel the uptake of remittance as a tool of investment to startups in Somalia.
“Tech hub startups are growing immensely in Somalia. There are more than 15 tech hubs in Somali. Somali Startups are rapidly going regional,” said Osman.
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United Nations Population Fund (UNFPA) Somalia Youth Fund Portfolio Manager Khadra Ali also proposed educating the diaspora on different investment opportunities in Somalia.
“We can motivate the Somali diaspora to invest in Somalia through having the right information to make investments to make a difference, trust, working in partnerships (not alone) share the stories; these are the hubs working with these startups, to motivate them we need to know what’s viable,” said Ali.
Somalis living in the diaspora have always expressed numerous challenges when it comes to different transactions dealing with diaspora remittances.
“Challenges facing Somali diaspora when sending money. Lack of Trust and missing accurate of information- Most Somali diasporas have a hard time accessing information Not having platforms to communicate their issues,” said Executive Director Educate Consultancy Mohammed Qamsa.
The event came at the back of previous reports that have revealed that remittances act as a vital safety net for many Somalis, but there are significant differences in the amounts and frequency of transfers, as well as among recipients.