In Somalia, the government is trying to improve its financial capacity and capabilities. It wants to convince other countries that it’s a safe place to invest. One lender has taken a major step forward in this process. Premier Bank has become the first to offer its clients access to a letter of credit. The crucial document will go a long way to boosting trust between traders and suppliers.
DP World says Djibouti incident could hurt Africa investment
DUBAI (Reuters) – Port operator DP World said on Thursday that Djibouti’s decision to seize control of a terminal project could hurt African efforts to attract investment.
The Dubai state-owned port operator is facing twin political challenges in Africa.
Djibouti abruptly ended its contract to run the Doraleh Container Terminal last month and Somalia’s parliament voted this week to ban the company.
DP World has called the Djibouti move illegal and said it had begun proceedings before the London Court of International Arbitration, which last year cleared the company of all charges of misconduct over the concession.
“Africa needs infrastructure investments and if countries can change their law [to take assets then this] is going to basically make it more difficult to attract investment,” Chairman Sultan Ahmed bin Sulayem told a news conference in Dubai.
DP World reported 14.9 percent rise in 2017 profit to $1.18 billion profit and said that it would invest $1.4 billion across its global portfolio including in Berbera in Somaliland. [L8N1QX0F2]
It is developing a port in Berbera in partnership with the governments of Somaliland and Ethiopia. It is also developing a greenfield free trade zone in the breakaway region.
Bin Sulayem said he was not concerned by the vote in Somalia’s parliament to ban DP World from the country, which the parliament said nullified their Somaliland contract.
It is unclear how Somalia’s federal government could enforce the ban given Somaliland’s semi-autonomous status.
Europe, the Middle East and Africa accounted for about 42 percent of the cargo DP World handled in 2017.
Reporting by Alexander Cornwell; editing by Jason Neely
INTERVIEW: Somalia gears towards improving its monetary policies
CGTN — Somalia’s central government imposed a five percent sales tax this month as part of efforts to win billions of dollars in international debt relief. This was followed by protests in Mogadishu’s main market by traders opposed to the tax. CGTN’s Abdulaziz Billow sat down with the country’s minister of finance who shed more light on the country’s monetary policies
Somalia Tax Argument From Both Sides: Bakara Traders vs The Government
Somalia’s busiest and largest open-air market in Mogadishu has been closed for the past two days.
Business owners in Bakara market are protesting over a five percent tax imposed by the government, in an effort to pay back some of its international debt.
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