The signing of the Mogadishu Port management agreement between the Federal Government of Somalia FGS and the Turkish company Albayrak earlier this month is a major milestone that was in the making for over three years. On Oct. To their credit, Albayrak came to invest in Somalia at a time when most foreign companies would have shuddered at the thought let alone come with their senior management, technical experts and work alongside Somalis on operational activities.
The FGS was always grateful for this innovative partnership that helped in raising domestic revenue at the Mogadishu Port through more effective and efficient operations. This, alongside the strong reforms commitment of the Somali government and support of international partners including the major international financial institutions, played a major role in helping Somalia to achieve debt relief at the end of March The new agreement builds on this with investments clearly planned for the upgrade of the port and an equitable financial arrangement which strengthens the win-win economic partnership for both sides.
The agreement between the FGS and Albayrak is unique and important in many ways. It exemplifies the fact that private sector investment is a fundamental driver of sustainable development and economic opportunity in fragile, post-conflict, recovering states like Somalia. This is because without investment Somalia will not be able to fully utilize existing resources including the strategic vital revenue-generating infrastructure like the Mogadishu Port.
A repeated and tiresome argument for many domestic and foreign investors in Somalia is the impediments to investing including insecurity, weak legal protection and the difficulty of accessing business insurance. This process may not be as linear as desired by traditional companies, but pioneers like Albayrak know that risk and reward are closely linked.
They also understand that waiting for things to get better is the best way to lose opportunities in developing countries. Albayrak has done the right thing by investing in hope and helping to improve the Somali business environment from within as a real stakeholder. This will be an enormous achievement which the Somali government and people are working on daily to realize for the betterment of their country and future prosperity.
