The National Investment Promotion on Strategy (NIPS) is underpinned by a set of activities aimed at creating a favorable environment for accelerating both foreign and domestic investment. Given the improving capacity of both Federal and Federal Member States (Puntland, Jubaland, South West, Galmudug, Hirshabeelle, Somaliland and Banadir Regional Administration), the actions proposed here are those expected to have the greatest impact on growth, revenues, jobs and reduce poverty rate.
Notwithstanding the prevalence of droughts and insecurity in many parts of the country, the country’s economy has shown a measure of resilience, attributable to private sector activities, particularly in the transport, telecommunications, money transfer and other services sectors. Considerable remittances by the diaspora have also been a lifeline for family incomes and private consumption. International support, both for humanitarian and reconstruction purposes, has increased as development partners have become more confident about the economic and social management of the country.
The NIPS capitalizes on the unique development case of Somalia, including the strategic trading position, extensive coastline, abundant unexploited resources, considerable growth potential and natural capacity for innovation. While the strategy relies heavily on the success of ongoing government-led economic recovery reforms, and support from the international community for the recovery efforts, it explicitly seeks increased contribution from private investment. The Federal Government of Somalia believes, despite an improving revenue base, that the vast majority of services will remain in the hands of the private sector, and that the growth of private businesses is, therefore, critical to growth, service delivery and indeed fiscal resilience. This strategy explicitly addresses the country’s over-dependence on external assistance.
National Investment Promotion Strategy