Fintech, energy and fisheries are seen as the new frontiers to lift the nation from aid dependency to economic sovereignty.
by Blue Africa News
Somalia President Hassan Sheikh Mohamud has declared his nation’s ambition to become the commercial gateway to the Horn of Africa and the Red Sea, positioning the country as a central hub for regional trade and investment.
The Horn of Africa region is composed of Somalia, Djibouti, Ethiopia and Eritrea with broader definitions including parts or all of Kenya and Sudan, while Red Sea is an inlet of the Indian Ocean, lying between Africa and Asia.
President Mohamud, addressing over 300 delegates during the first US-Somalia Trade and Investment Forum held in Mogadishu in October, said bilateral cooperation is key to his country’s bid to attain the Horn of Africa and the Red Sea gateway status.
“Trade and bilateral cooperation are the keys to a prosperous future. Somalia wants to become the commercial gateway to the Horn of Africa and the Red Sea,” he said.
To achieve the feat, the president said his government is committed to creating a stable and secure environment that encourages investment and trade.
“Somalia is rich in natural resources, has a growing consumer market, and a young, innovative population. We aim to establish peace and stability that supports sustainable business and long-term partnerships.”
During the trade forum, 12 Memorandum of Understanding (MoUs) were signed between Somalia and US, focused on fintech, energy and fisheries as the new frontiers to lift the nation from aid dependency to economic sovereignty.
Somalia’s economic growth has over the years been pegged back by insecurity, conflicts and climate shocks, with Al Shabaab militants being linked to rising cases of insecurity in the country.
In May, the European Union Agency for Asylum (EUAA) in its report estimated that between April 2023 and March 2025, over 75% and 80% of the security incidents and estimated fatalities respectively, can be linked to the Al-Shabaab or anti-Al-Shabaab conflict.
That notwithstanding, president Mahmud emphasised the importance of economic cooperation and modern technology to his country’s economic growth. He gave an indication that Somalia would prioritise the development of infrastructure, agriculture, fisheries, and renewable energy.
Oliver Ochieng, Blue Africa News