Somalia President Accused of Backing “Ponzi Scheme” Airport Project in Mogadishu

[Deeq A.]

President Mohamud: ”One hundred million shares are for sale at US$35 per share. The aim is to give even the man selling bananas on the streets an opportunity to own shares in the project, no matter how long it takes to build the airport – five years or ten years.”

Mogadishu (PP News Desk) — Earlier this week, President Hassan Sheikh Mohamud announced a share-buying scheme to fund the construction of a new airport in North Mogadishu. “One hundred million shares are for sale at US$35 per share. Companies and businesses can purchase shares for the new Mogadishu airport project in North Mogadishu. The aim is to give even the man selling bananas on the streets an opportunity to own shares in the project, no matter how long it takes to build the airport – five years or ten years,” said President Mohamud.

The airport project is a part of the “Mogadishu Economic Zone” initiative in North Mogadishu. Critics of the project have criticised the initiative for granting private ownership status to a core national infrastructure.

“Not only is North Mogadishu economically deprived and less diverse compared to South Mogadishu, but the project is also a political gimmick President Mohamud is using to bolster his support within his constituency and to marginalise his rivals,” said a former Federal MP.

A senior economist told Puntland Post that the North Mogadishu airport project does not qualify as a public-private partnership due to its scale and the national security risks posed if a foreign company owns shares in a national airport. “According to President Mohamud, the total cost of the North Mogadishu airport project is 3.5 billion dollars. Shares are to be sold to companies and private investors at 35 dollars per share. The project has all the characteristics of a Ponzi scheme, given the absence of property rights and the rule of law in Somalia,” said the economist.

© Puntland Post, 2024

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