Yasin M. Ibar, the CEO of Somalia’s National Securities Exchange (NSES), shared insights in an exclusive interview at the East Africa Capital Markets Conference in Kampala, shedding light on how Somalia is building investor confidence and tapping into the potential of diaspora capital.
Under Ibar’s leadership, the NSES aims to usher in a new era of economic reform, moving away from aid dependency and focusing on investment, trust, and regional integration. The launch of the Exchange marks a pivotal step in Somalia's ambitious National Transformation Plan, which aims to attract capital, improve governance, and foster long-term growth. With the Exchange at the center, Somalia is creating a regulated platform that channels remittances, savings, and private capital into productive investments.
The country’s economy, rich in untapped resources— from its vast coastline and renewable energy potential to its booming telecom and fintech sectors—presents huge opportunities for investors. The Exchange will serve as a gateway for regional and diaspora capital, providing Somali businesses with access to long-term finance, while offering a transparent market for investors.
Ibar emphasized cross-listing as a central part of the strategy, with active discussions already underway with four Kenyan companies in logistics, financial services, and real estate. These companies see Somalia as an emerging growth market, and the Exchange aims to bridge the gap for regional and diaspora investments.
Being a member of the East African Securities Exchanges Association (EASEA), Somalia is aligning its rules and technical systems with regional exchanges. This collaboration is paving the way for Somali securities to trade seamlessly across East Africa, ensuring that Somalia becomes not just a newcomer, but a key connector in East Africa’s growing financial ecosystem.
Building Investor Trust:
In a country still rebuilding its institutions, trust is vital. Ibar explained that NSES is structured as a private, self-regulatory organization (SRO), working closely with the Central Bank of Somalia and the Ministry of Finance. A comprehensive Rule Book has been developed to guide listing, trading, membership, and dispute resolution, ensuring fairness and transparency from day one. Furthermore, every listed company will adhere to international reporting standards and disclose audited financial statements.
A Shariah Advisory Board will oversee all investment products to ensure compliance with Islamic finance principles, fostering confidence among both local and international investors. Ibar stressed the importance of cultural and ethical trust in building a new market and pointed to ongoing nationwide investor education efforts in partnership with chambers of commerce, universities, and diaspora groups.
Integration with Regional Markets:
Ibar highlighted the importance of regional integration through platforms like EASEA, which facilitates knowledge exchange and technical cooperation with more established exchanges. Somalia is already in talks with Kenyan firms, signaling strong interest in cross-listing and market expansion across East Africa. This regional alignment is crucial for Somalia’s goal of building a connected, interoperable capital market.
Strong Governance:
The governance framework of NSES is designed for independence and accountability, with robust regulations to protect investors. The Exchange operates as an SRO, implementing its own rules on trading, listing, and disclosure, while collaborating with government bodies on broader financial reforms. This self-regulatory model mirrors practices in established markets like Kenya, ensuring strong oversight and market discipline.
Technology and Transparency:
Building on Somalia's advanced mobile finance ecosystem, the NSES will use a fully digital platform for trading, clearing, and settlement. This will enable global diaspora participation and ensure secure and transparent operations. Starting digital also avoids the challenges older exchanges faced, positioning the NSES to support a modern, low-cost, and inclusive market.
SME Inclusion:
Small and medium-sized enterprises (SMEs) are central to Somalia’s economy, and NSES aims to make capital markets more accessible to them. The Exchange is exploring the creation of an SME or secondary board with simplified listing requirements. By raising awareness and offering incentives, NSES seeks to help smaller businesses grow, attract investment, and improve governance.
Looking Ahead:
The next year will focus on launching the market, completing the digital trading system, and finalizing the Rule Book. NSES anticipates its first listings, including equities and Sukuk from key Somali sectors such as telecoms, banking, and energy. The Sukuk program will also include sovereign issues for infrastructure and projects in renewable energy. Each Sukuk will fund specific, Shariah-compliant projects with full transparency.
Ultimately, the Exchange aims to shift Somalia’s economic narrative from aid dependency to a confident, connected, and investable nation. The coming months will be pivotal in proving that Somalia’s future lies in productive, transparent investments that drive sustainable growth.