- Pangea Trust holds a Somalia Stakeholders session.
- The session aims to bring together key stakeholders in the Somali diaspora, investors, and financial institutions in Somalia to engage and explore diaspora remittance investment opportunities
NAIROBI,Kenya, Oct 18- Local firm Pangea Trust will on the 28th of October 2021, host the Somalia Stakeholders session,an event aimed at deepening discussions on how best to use diaspora remittance investment opportunities in the region.
The virtual event will bring together key stakeholders in the Somalia Diaspora, Investors and Financial Institutions in Somalia. We will be having two panelist speakers for this session.
Dalmar H Kanyare, Senior Advisor for Productive Sector Development Program will be talking more on the projects ongoing in Somalia funded by diaspora remittances, areas the money has been invested in, e.g. building hospitals and more on what the government is doing to support startups in Somalia.
Mohamed Ali Qamsa,Ecosystem Developer and Consultant from Educate Consultancy, will be discussing the challenges faced using diaspora remittances, the ease of accessing soft loans and different available investment opportunities for startups.
Our audience will greatly benefit from this session, as they will learn how they can improve Somalia’s economic status through huge capital injection from diaspora remittances. Also,how both the investor and the startup or SME can successfully use remittances through investments through various business opportunities.
Through this, Pangea Trust, funded by the Swedish International Development Cooperation Agency will create a platform to revolutionize the financing of start-ups, giving the diaspora the opportunity to become a major player in the ecosystem.
Previous reports have revealed that remittances act as a vital safety net for many Somalis, but there are significant differences in the amounts and frequency of transfers, as well as among recipients.
The surveys have also indicated that the majority of Somalia households do not directly benefit from remittances.Remittances are mainly intended for consumption and social support, which is unsustainable, hence the dialogue to make concerted efforts on mechanisms and collaboration that can lead to an increase in the channels of remittances to invest in companies and startups.
The session aims to share findings from the recently completed Kenya Diaspora Mapping Study which could be relevant to the Somalia market. The session will explore diaspora remittances as a tool to drive investment for startups and MSMEs in Somalia.
If the government makes it easier for people to access these remittances and reduce the barriers,it can really boost the Somali economy.
Financial assistance by Somali migrants is astonishing with an estimated $1.4 billion remitted in 2018. This corresponds to 25 percent of Somalia’s GDP and exceeds international aid and foreign direct investment according to the Somalia National Development Plan, 2020-2024.
Some barriers faced by Somalis accessing the diaspora remittances are that many young Somalis in Diaspora are not as attached to their homeland as older generations; therefore, there is growing concern that remittances will decline in the future.
Also some Somali diasporas distrust the role of international organizations in Somalia.
However, most are open to the idea of working together to maximize the impact of diaspora contributions to relief, development and peace building.
At the same time remittance-sending channels need to be protected to enable people to send money to all parts of Somalia.
All money transfer companies operating in Somalia should reduce their transaction fees to help maintain the flows.
For More Information Contact
Communication Lead Pangea Trust
Mobile No. +254718404858