(22-03-23) Mogadishu – Somalia, like other nations, must have a regulatory body to prevent large companies from dominating the market and crowding out small businesses. A lack of such oversight can lead to an unhealthy business environment, threatening the country’s economic growth and the livelihood of millions of small business owners.
Prominent Somali companies, such as Hormuud, Dahabshiil, and others, wield significant power in the nation’s economy. Hormuud Group of Companies, for example, is believed to control at least 60% of the country’s economy, with some estimates suggesting even 75% or more. The company has a presence in numerous sectors, including communications, construction, electricity, transportation, education, agriculture, and animal husbandry.
However, Hormuud has also faced accusations of “theft of ideas,” limiting investment opportunities and forcibly taking over businesses owned by disadvantaged individuals. One example is the case of Al-Nur School, a Braille school for the blind founded by Abdirahman Luunge in 2005. In 2012, Hormuud officials visited the school, claiming they wanted to learn about its curriculum before offering assistance. Instead, they coerced the school into submission, ultimately taking it over and incorporating it into the Hormuud Foundation.
This unchecked economic power, held by a single company with significant influence over the country’s leadership, poses a grave danger. Can a company be trusted with 75% of the country’s economy without proper accountability?
To ensure a fair and competitive business environment, Somalia urgently needs a regulatory body with authority to protect small businesses, public property, and organizations from being manipulated or coerced by powerful corporations.
The author invites readers to share their experiences with companies and institutions that have faced similar challenges, highlighting the need for urgent action to establish a regulatory framework that ensures a healthy and competitive business environment for all.
By. Abdisalam Yusuf Guled, former deputy at Somalia’s national security and intelligence agency
The article was initially written in Somali, and Halqabsi rewrote it and translated it for our English readers.
