By Mohamed Dubo - Director of the Investment Promotion Office (SOMINVEST) under the Ministry of Planning, Investment and Economic Development of Somalia
“Somalia’s wager is straightforward but bold: that by wiring the country—physically through fibre optic and virtually through platforms—it can de-risk projects, crowd in capital and leapfrog stages of development. If it succeeds, the dividends will not merely be faster internet speeds, but a reconfigured economy—one in which connectivity becomes the currency of growth and investment the engine that sustains it”.
Somalia is advancing a bold strategy to leverage technology as a catalyst for economic transformation, aiming to bypass traditional development stages by expanding digital infrastructure and strengthening investment frameworks.
At the center of this effort is a coordinated push led by the Somalia Investment Promotion Office (SOMINVEST) and the National Communications Authority (NCA), focused on converting the country’s fragmented telecommunications success into a structured investment platform capable of attracting both foreign and domestic capital.
Somalia’s telecommunications sector—largely built by private investment in the absence of a strong central state—has long stood out for its competitiveness and resilience. Authorities now seek to consolidate these gains by positioning ICT not merely as a service sector, but as a foundational infrastructure class comparable to ports, energy, and transport.
Within SOMINVEST’s 2026–2030 pipeline, expanding connectivity remains a central pillar. Key priorities include developing fibre-optic backbones, extending broadband access, establishing data centers, and advancing digital platforms to support both public services and private-sector growth.
The strategy comes at a time when investors across Africa are becoming more selective, favoring projects with clear revenue models, regulatory stability, and scalability. Somalia’s response has been to enhance project bankability by standardizing preparation processes, strengthening institutional coordination, and signaling policy continuity.
Recent engagement between SOMINVEST and the NCA underscores the importance of regulatory clarity in the ICT sector. Investors require predictable licensing regimes, transparent spectrum management, and enforceable competition frameworks—factors seen as critical to unlocking large-scale investment.
Domestic investment remains a key pillar of the sector. Somali telecom operators, financial institutions, and diaspora-backed ventures have historically driven growth, offering capital, market insight, and risk tolerance. The current framework encourages co-investment models, where domestic capital anchors projects while foreign capital supports scaling.
However, foreign direct investment remains essential to meeting the scale of Somalia’s digital ambitions. Projects such as nationwide fibre networks, advanced data centers, and cloud infrastructure require significant capital and technical expertise, alongside integration into global value chains.
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SOMINVEST’s project portfolio reflects a strategic shift toward higher-value segments of the digital economy, including wholesale bandwidth, enterprise data services, and fintech-enabling infrastructure. While voice and mobile money markets are relatively mature, the data economy remains underdeveloped, presenting new growth opportunities.
The ICT investment push is aligned with Somalia’s National Transformation Plan (NTP), which identifies digitalization as a core driver of economic restructuring. Within this framework, ICT supports broader goals such as e-government development, financial inclusion, and private-sector formalization.
Authorities are increasingly framing ICT as a productivity multiplier, capable of reducing transaction costs, improving market integration, and expanding access to financial services. These spillover effects are expected to strengthen the overall investment climate and stimulate economic diversification.
Despite the progress, challenges remain. Economic fragility, security risks, and institutional capacity constraints continue to influence investor perceptions. The bankable projects approach seeks to mitigate these risks by improving project design, clarifying revenue streams, and enhancing coordination among stakeholders.
Somalia’s strategic geographic position also presents opportunities within the global digital economy. With sufficient investment, the country could emerge as a regional connectivity hub, linking digital infrastructure across key maritime routes.
Ultimately, the success of Somalia’s ICT strategy will depend on execution. Translating investment plans into operational projects will require sustained coordination between policymakers, regulators, and investors, alongside a balanced approach that preserves market dynamism while strengthening regulatory frameworks.
By aligning infrastructure expansion, regulatory reform, and investment promotion, Somalia is signaling a shift toward a more structured and investment-ready digital economy—one aimed at accelerating growth and positioning the country within Africa’s evolving economic landscape.
* Mohamed Dubo is the Director of SOMINVEST, with extensive experience in strategic communications, investment promotion, and economic diplomacy.
*The opinions expressed in this article are those of the writer and do not necessarily reflect the views of Dawan Africa.