In line with the 9th Somalia National Development Plan 2020 – 2024 (NDP-9) and the Somalia National Investment Promotion Strategy (NIPS), the Federal Government of Somalia has prioritized attracting and growing domestic as well as Foreign Direct Investment (FDI) as a means to expand the economy, and create more and better jobs, with the ultimate aim to develop a more diversified and future fit sustainable economy (NDP-9 Pillar 3) .
Year over year, the national commitment to improve security shows clear signs of progress as more cities and towns are liberated from the grip of violent extremism followed by an inflow of economic activity to address pent up demand for goods and services. As the market expansion takes place, interest from foreign investors, a number of whom are Somali diaspora living abroad, increases. Foreign investors, many of whom have become more familiar with the unique Somalia business environment and investment climate through coordinate campaigns promoted by the Investment Promotion Office (SOMINVEST), partner countries and donors, seize the opportunity to expand into Somalia markets. Frequently diaspora is instrumental as promoters of opportunities back home in Somalia to foreign companies or organize their own campaigns to establish new businesses or invest back home. Many diasporas partner with local Somali business leaders or return with foreign investment partners and experience in key economic sectors themselves. Each of these would be investors rely on market and investment information.
As such, SOMINVEST, at the Ministry of Planning, Investment and Economic Development (MOPIED), actively pursues sector and sub-sector target specific Investment campaigns. To that end, this Priority Investment Study: Investment Opportunities in the Somalia Tourism and Hospitality Sector, was commissioned by SOMINVEST in harmony with the Ministry of Information, Culture and Tourism (MOICT) and aligned with the NIPS declared high growth potential priority investment sector, Hospitality and Tourism.
As described by the Somalia MOICT, before its collapse in 1991, Somalia had a sizable Tourism Industry, including developed tourist locations ranging from inland to costal locations, highlighting cultural, wildlife and its coastal beach destinations. These formerly known Tourism locations can be revived and the MOICT department of tourism department has already begun work with the Federal Government of Somalia (FGS) more broadly to do so.
Although not yet formally operationalized, a new National Tourism Policy has been developed by the MOICT and was approved by the Council of Ministers (cabinet) of the Federal Government of Somalia in 2019. This policy specifies the overall sector regulation, management, and revival of the tourism industry consulting with all the stakeholders including the private sector. The vision of the National Tourism Policy is “Somalia hosts international tourists in the year 2030” which means the country has to reach a level of recognition for position itself as a tourism destination in Africa. The tourism sector is based on a long vision, starting from the development and revival of the tourism sector in the country by the year 2030. To realize the long-term vision of the tourism sector is essential to reform and re-brand the country’s image through tourism sector.
The MOICT recognizes the significant impact of these policies on socioeconomic development and plans to lead Somalia Tourism back to an international level.
Somalia Tourism and Hospitality Study Report