Technology tipped to catalyze Somalia’s rising economy

Even before the dust settles on the restoration of Somalia by African Union Mission in Somalia (AMISOM) soldiers, analysts are predicting that the rise of Somalia will be heavily pegged on technology.

A report by BBC recently indicated that Somalia was the last country in Africa to get online, attributed to the perpetual civil strife and terrorism.

Yet now telecommunications could be set to prosper in the stricken country. Somali Report indicates that the industry is among the sectors that have been thriving in Somalia, with revolutionary digital technology providing more opportunities for investment.

Economic analysts believe that Somalia has some of the best telecommunications systems in Africa, with a handful of companies offering competitive and affordable data and voice services.

Companies such as Global Internet Company have thrived in the troubled nation, offering dial-up and wireless Internet connectivity, previously incomprehensible in the war torn state.

According to some analysts, competition in Somalia’s telecommunications sector is high compared to its immediate neighbours. The country’s other telecom companies include Nation Link, Telecom Somalia, Soma Phone and Orbit.

And Analysts believe that this thriving sector will hold the key to revival of economic activities in the country.

Communications is the most important aspect of any business, and having that basic infrastructure could make it easier for companies to settle in down in Somalia.

One of the shareholders of the Global Internet Company, Hormuud Telecom Somalia, Ahmed Mohammed told Somalia Report that it was needed to help Somalia and its people, given that the nation has been without a government for such a long time.

“We started linking the people through communication which also inspired many business groups to form companies,” he said.

According to data by the UK Government, the GDP of Somalia stood at nearly US$5,700 according to a 2009 estimate. During the period, the annual growth stood at 2.6 percent, in spite of the instability and lack of proper procedures in the country.

Most investors are still scared off by the instability that lies in the country and the lack of a proper governmental framework. However, it seems Somalis have decided to be their own investors, with experts patting them on the back by for initiating a technological take-off.

Posted in: Internet

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