Tips For Doing Business In Somalia

Somalia does not hold a very positive reputation and firm commercial support as the country have been through a lot of trouble for several years. Civil strife, political outbreaks, fake currency rackets and the problem of pirates have done a great deal of damage to the commercial image as well as financial standing of the economy of Somalia. Absence of a stable and recognized government as well as the lack of natural resource base has also curtailed the economic growth of the country to a great extent. Apart from these, Somalia faces several developmental challenges that hinder businesses to set up their entities in this country.

Trade imbalance and dwindling export as well as import activities, poor investment climate makes it scary for many entrepreneurs to come and set up their commercial base in Somalia. Instability at the central government level makes new entrants as well as global giants feel shaky to start a new venture in Somaliland. Most businesses do not look at Somalia as a proper and safe investment hub due to its history that has been marred with severe disruptions. However, things are beginning to change in Somalia. Businesses need not fear when making investments in the region. Young entrepreneurs can make a mark in Somaliland by following some simple tips and rules.

o Before setting up a business in Somalia, be sure to gather adequate information on the cultural, economic and political specifics of the country. It is important to understand each and every aspect related to commercial dealings. Learn the business and social etiquettes so that you do not end up being in trouble when dealing with local people in Somalia. Starting a business in Africa isn't quite the same as starting one in Europe.

o When serving the local population of Somalia, be sure to know the customer behavior and preferences in order to help you design your product and service in such a manner that it interests your target audience

o It is also crucial to know the factors that affect the economy of Somalia when starting a business. Gather all relevant information related to key industrial sectors of Somalia, its currency, government, nature of economy and trade activities. Information on trade agreements will also help you carry out your export and import business without facing hassle. It will also work in tour favor if you learn about the stock exchange markets and other internal financing activities of Somalia

o When setting up new commercial units in Somalia, always try and follow the official norms. Flouting the government rules and regulations may cause you more trouble. Know what the rules are for initiating a new venture in Somalia.

o If you have contacts at influential and powerful places such as Embassy of Somalia, the Somali Chamber of Commerce and Industry or any other administrative organization, use these contacts to your advantage for starting new businesses. Using the official channels will help you get your work done quickly and without much trouble

o Do not just show the people of Somalia the commercial benefits of your business, but try and business over the key business chambers of Somalia by showing them the social welfare benefits that you business aims to bring in for the people of Somalia.