Newsletters
Somalia's Presidential Economic Advisor Hassan Adam Hosow said Türkiye is pioneering actual investments in the country, urging the international community to view Somalia as a nation capable of significant economic development leaps, not just one emerging from civil war.
Hosow evaluated the country's economic situation during an interview with state-run Anadolu Agency (AA) on Wednesday, highlighting Somalia's continued economic growth since the beginning of its recovery from civil war in 2012.
Somalia's economy has averaged 4% growth in recent years, with significant milestones achieved over the past three years, according to Hosow.
The country joined the East African Community while the private sector has been rising and the service sector drives economic growth.
"We have made progress in key areas," Hosow said, explaining the development of a National Transformation Plan to guide development over the next five years and the design of "Century Vision 2060" to direct Somalia's long-term growth as it approaches its 100th independence anniversary in 2060.
"This vision aims to make Somalia a developed, prosperous, peaceful country and for its citizens to reach an annual per capita income of approximately $6,000 to $7,000, which would move us into the upper-middle income countries category," Hosow said, expressing confidence in reaching these milestones based on Somalia's trajectory.
Revenue collection has seen significant success in recent years, with revenues increasing approximately 88% since 2022, Hosow reported.
Hosow also acknowledged international community support for Somalia, stating: "Türkiye became one of the countries supporting Somalia's economic growth through investments or budget support."
"We really appreciate these countries supporting Somalia. Türkiye is the pioneer of actual investments in the country," he added.
Somalia faced debt challenges affecting Africa, but successive governments' intensive efforts in the post-civil war debt relief process enabled debt reduction in 2023, Hosow noted.
The debt-to-GDP ratio dropped from 64% to 6%.
"Now Somalia has almost no debt, only around 6%. This is a manageable level. Considering the weight of debt, we can now say 'Somalia has no debt problem,'" Hosow said.
"Indebted countries cannot grow economically. Debt prevents economic growth because debt must be serviced," Hosow explained, adding: "So debt must be paid and this creates policy alternatives. Will you finance health or education, spend on social programs, or will resources only go to debt payment?"
If several more reforms are implemented in line with the National Transformation Plan and Century Vision 2060, Somalia will be debt-free, which represents a significant opportunity for countries to grow, he added.
"We want our industry to develop, we want various sectors to develop, and we want Somalia to benefit from its natural resources, especially oil and gas that Türkiye helped us discover and extract," Hosow said, noting Somalia has one of Africa's longest coastlines.
Hosow called for the world to view Somalia not just as a country emerging from civil war, but as one capable of major economic development leaps.
Hosow later emphasized Somalia's potential as an investment destination, citing its natural resources, arable land, and a youth population comprising approximately 75% of the population.
"We were dependent on aid for a while. But now, thanks to Century Vision 2060 and the National Transformation Plan, our country is ready for investment," Hosow said.
"Just like Türkiye did. Türkiye invested in Somalia, in infrastructure, airports, ports, many social sectors. Most recently, Ziraat Bank opened. Türkiye gained the advantage of being the first country to enter Somalia by investing," he noted.
"We also want many countries to come and invest in Somalia. They will achieve great returns from their investments," Hosow concluded.
1 min read
2 min read
