Somalia - Foreign investment

Follow founder on our Forum or

Civil strife and the lack of a central government have discouraged foreign investment. Although the UN and associated foreign governments spent $4 billion dollars to restore order to the country, no productive assets remained after their departure in 1995. The only economic spin-off appears to have been contracts issued to local companies to dispose of military debris and trash. Foreign investment in the late 1990s centered around the communications structure in mobile phone technology, and energy creation, but continuation of political conflicts well into 2002 drove away investment. For the period 1997 to 2001, annual foreign direct investment (FDI) ranged from $1.1 million in 1997 to a negative divestment of -$800,000 in 1999. Across the five years, net FDI flows were barely positive, at $400,000.

User Contributions:

Comment about this article, ask questions, or add new information about this topic: