- Business Relationships
- Foreign direct investment
- FTAs and Treaties
- Development Cooperation
- Prospective fields of study (MOP)
Trade relations with the EU
Due to the economic situation in the country and the need to import almost all goods, Somalia’s trade balance with the EU is considerably negative. Both exports from the EU and imports into the EU have been at a similar level in recent years, despite the global pandemic. The EU is not a key trading partner for Somalia.
|Exports from the EU (million EUR)||145.6||123.9||128.8||136.1||132|
|Imports into the EU (million EUR)||18||23.2||23.1||18.3||28.3|
|Balance with the EU (million EUR)||-127.7||-100.7||-105.7||-117.9||-103.7|
Source: European Commission
Trade relations with the Czech Republic
From the Czech point of view, the Czech Republic’s trade balance with Somalia was negative until 2017, after which the tide began to turn, and thanks to the growth of Czech exports in 2020 and 2021, the Czech Republic’s balance is significantly positive. In recent years, Czech exports to Somalia have been dominated by photosensitive semiconductor devices including photovoltaic cells, structures and their parts and components, processor units and memory units. Somalia imports coins to the Czech Republic, on the one hand those that are legal tender, and on the other hand those that are not legal tender.
|Exports from the Czech Republic (million CZK)||0.560||3,763||9,109||14,828||25,188|
|Import to the Czech Republic (million CZK)||4,791||3,512||6,282||5.147||7,216|
|Balance with the Czech Republic (million CZK)||4,230||-0.251||-2.826||-9.681||-17.972|
Trade relations with countries outside the EU
Exports from non-EU countries in 2020 decreased by EUR 100 million compared to the record year of 2019. Compared to exports from the EU, it reaches approximately times higher values. Somali exports to countries outside the EU have a growing tendency and in 2020 were 152 times higher than Somali exports to EU countries.
|Exports from countries outside the EU (million EUR)||246.8||329.7||416.2||314.7||ON|
|Imports to countries outside the EU (million EUR)||2 111.9||2,192.9||2,582.7||2,743.9||ON|
|Balance with non-EU countries (million EUR)||-1,865.1||-1,863.2||-2 166.5||-2,429.3||ON|
Source: EIU, Eurostat
Foreign direct investment
According to the World Bank, foreign direct investment in Somalia reached a record level of USD 464 million in 2020, an increase of USD 17 million compared to the previous year. The biggest investors in Somalia are Germany and the USA, and recently Turkey has also been active, whose investments are mainly in the construction industry. In 2020, Somalia published a strategy to attract foreign investors, which includes 10 priority sectors, which include manufacturing, energy, fish processing and livestock. Foreign investors are deterred by high levels of corruption, ongoing violence, an unstable political situation, a lack of transparency, the absence of the rule of law, insufficient infrastructure and a high share of the informal economy. The Ministry of Planning opened the Investment Promotion Office in 2019.
FTAs and treaties
Treaties with the EU
Somalia is a signatory to the Cotonou Agreement.
Contracts with the Czech Republic
The validity of the 1976 trade agreement between Somalia and Czechoslovakia was terminated in connection with the entry of the Czech Republic into the EU.
Somalia is a net recipient of development aid. The EU and its member states have allocated EUR billion to projects in Somalia from 2015 to 2020, making them the largest funder. More than half goes to development aid, support for security and the development of education and the economy. Another important donor is the USA.
In Somalia, apart from the EU and CS EU (in Somaliland), Turkey is more involved in development. Its assistance is mainly implemented by the state agency TIKA, but also by non-governmental Turkish organizations. Turkey became more prominent during the famine in the 1990s and became heavily involved after 2011. On the contrary, Somalia helped Turkey gain economic access to the Horn of Africa and East Africa. Turkish aid is often of a budgetary nature, and in the civilian area it is concentrated on infrastructure aid and agricultural projects.
The Czech Republic provides development aid to Somaliland through small local projects, e.g. for the construction of a school or clinic in the Sanaag area.
Prospective fields of study (MOP)
Somalia is not included in the ILO.
Practical telephone numbers (emergency services, police, firemen, information lines, etc.)
888 – police, 999 – firefighters, 555 – ambulance
Mogadishu: Banadir Hospital +252 61 8035555
Somaliland: Hargeisa Hospital: +252 2 523 114
Ambassador Hotel +252 2 566666
Important web links and contacts
UNDP in Somalia www.so.undp.org/content/somalia/en/home.html
Somaliland Government Portal http://somalilandgov.com
Ministry of Foreign Affairs www.slforeign.com
Somaliland news portal www.somalilandpress.com
Somaliland Chamber of Commerce and Industry www.somalilandchamber.com
Ambassador Hotel www.ambassadorhotelhargeisa.com, [email protected]