Hamsa says:

This is good news and I know Banque pour le Commerce et l’Industrie (BCIMR), which is a French bank has an office in Hargeisa that will start trading soon.

Right now most banks are struggling and its going to be difficult to attract investment in this field but I know some like to take high risks with high gains.

Lets wait and see what happens next, I believe we can do other transactions too by getting Dahabshiil, Qaran Express and others to act as Letter of credit, but will issue through Money Transfer, they will deposit insurance money in Foreign banks in foreign countries. And those who feel they will lose their money can claim that deposit.

We can do so much people and this is about self empowering we do not need recognition, we recognize ourselves as a nation we function like one thats all that matters. The struggle is part of life even in recognition we will face much greater obstacles, look at SOmalia its recognized but worse situation than us. Just a name on paper.

boqoljireh says:

Correction: A Commercial Bank that the Government and Public buy shares.

elies says:

insha allah things will get better in somaliland, we are a great nation lets work together and allah is with those who work together. may allah bless this great nation and may allah make our country peaceful..amin ya allah

Warya says:

Here are a few Ideas:

1. SL has cheap labour so why not invite well known companies to conduct their manufacturing operations there.

2. Modernize the army. How? Become a partial member of NATO. Turkey is not part of EU yet it is one of the largest contributors to NATO. A part of this objective will also been taking part in minor aid and peace keeping missions. Learn and run with the best to become better!

3. Take part in high publicized international conferences like climate change. By providing developed nations with the opportunity to try out need technologies and policies first hand then perhaps they might be willing to open a few doors in exchange.

4. Provide well known US companies with cheap, tax free land to experiment their new military hardware. i.e. Lockhead figher jets etc.

Ali907 says:

Investment is a key to Somaliland International Recognition and issuing banking licenses
and no doubt this will play a Big role in bringing more investors to our shores. Well done to the new Government.

hassan says:

A Few Cautionary Principles:

The ability to save and the availability of credit are critical for the development of Somaliland, however it must be done in a way that is beneficial to Somaliland and not to foreign bankers. Having foreign banks in the country is not an achievement in itself, foreign banks have been active in african countries for more than a century. It is how the banking industry is regulated that contributes to the development of a nation. For example, a foreign bank which operates in Somaliland but has the majority of its reserves outside of the country does a lot of harm to the developmental agenda of the country. In order for the economy to grow we need to circulate credit to small businesses and entrepeneaurs and the bank has to invest in the country as well. But if the money they make from Somalilanders in terms of savings and returns on loans is kept offshore then the bank is simply taking money out of the country, money that could have been used to start businesses and increase consumption which are critical to a growth in GDP.

So overall, I am not a banker but have studied this issue in my developmental studies classes and my economics courses, if there are proper regulatory guideliness that are conducive to the development of the nation (i.e. high reserve requirement with the Somaliland Central Bank) then yes having banks will be usefull.

Also, the Somaliland Central Bank should open up subsidiaries that provide loans and invest in the development of the economy and infrastructure, while allowing foreign banks to operate with strict reserve requirements. Principally, the function of the foreign banks should be to provide legitimacy to the Somaliland Central Bank in its future endavours and to help small businesses.

Lastly, remember what happened in the Asain Crisis of the 1990's when as a result of the lack of bariers against credit mobility led to a recession? That is, foreign banks can end up playing a big role in Somaliland's banks, but because of global credit mobility rules established by the IMF/WB which argues that money should be able to flow freely between borders inorder to promote investment, when speculator investors thought their money should go somewhere else, they pulled all their money out of the asain markets at the same time, therefore causing the recession. So a lesson from this is to make it difficult for money to leave Somaliland (circulating money within the country promotes development and reinvesting of money within sectors in the country) but make money coming in easy. Again this requires significant regulatory powers that the IMF/WB will certaintly disagree with.

Anyways I hope, those guys running the country are aware of these, I am sure they are, but I hope they have the political will to look out for the best interest of the nation by refuting the demands of the global financial bodies using sound arguments.

john bayer says:

i went to hargeysa with my father who works for a canadian relief agency. you people should really focus on cutting the poverty levels and picking up all those littered garbage bags. the amount of litter and poor people in that country is just sad. hopefully you guys will fix up your country's problems. i thank god everyday i live in north america.

adam ali jama says:

I will and i must stick to the somaliland shilling. that is part of my identity. Shaadh kaaga duuga ah dib u karkaro..
Somaliland is loosing it´s dignity pit by pit simply because they bleive that they cann´t exist with out RECOGNITION. ( Look the magic acheivments for the last 20 years).
We must truth our selves and level our people with the world. Honest people and hard work is needed. That is all…
My advice to President Silanyo: Forgning investors are well come in the republic but be very very carefull with the world BANKERS. They know their move which is CHECK MATE:::::::