Booming Business Beckons

[NASSIR]

Booming Business Beckons

 

The Nation (Nairobi)

August 30, 2005

Posted to the web August 29, 2005

Nairobi

 

 

Relative peace has returned to Somalia, and so have the businessmen eyeing its oil, gas and mineral deposits.

This follows a painstaking peace deal that was facilitated by Kenya, and which included hosting the Somali Government in Nairobi for one year.

The price of peace has been enormous for Kenya, which had to foot a huge bill, not to mention hosting thousands of Somalia's displaced people.

As happened in Sudan - which Kenya also helped bring back on the path of peace - business opportunities are opening up in Somalia, but Kenyan businesspeople have yet to take note.

Besides lucrative oil or mineral deals, Somalia's reconstruction process will involve paving roads and rehabilitating buildings destroyed in the 14-year civil war.

There are also issues of security to consider. Although there are warlords who profited from the chaos in Somalia, and who would possibly resist the restoration of order to ensure they continue to enjoy the spoils of war, the Transitional Federal Government (TFG) must demonstrate that they are in charge.

The Prime Minister of Somalia says there have been efforts by Western firms to make advance payments to individuals to secure mining concessions.

Apart from diverting crucial revenues needed by the the transitional government, such inducements and under-hand deals could trigger further anarchy, the sort that fomented the initial conflict.

This is an issue that the African Union should monitor closely, and intervene if necessary.

What our Government should be doing, in the meantime, is to strategise how Kenyan businessmen can be supported if they are keen to invest in Somalia and avoid a repeat of the Sudan blunders.

Besides organising trade fairs and other expeditions to Somalia, the Government should provide a framework to facilitate investment there.

For those eyeing reconstruction contracts in the Sudan, the Kenya Commercial Banks has demonstrated it is never too late by opening a branch in southern Sudan.

This inspires confidence that political continuity will be possible, and that Sudan will survive the death of Dr John Garang.