Investing in Opportunity: Mogadishu- One of the World's Most Densely-Populated Cities

Welcome to Somali Invest's Newsletter.

Welcome to what is more of an informal blog. My goal here is to open up a conversation about Somalia’s economic opportunities, especially for the diaspora. I’ve noticed that many of us don’t engage much with these discussions, often because they’re happening in Somali, and we feel left out due to language barriers. So, I thought, why not write about these topics in English?

This week, the topic is Mogadishu being incredibly crowded, why this might be the case, and what it means looking ahead.

Did this fact surprise you like it did me? Considering the vast expanse of our country and the relatively small population back home, I was definitely surprised. But then I took a closer look at the city. A bustling, loud metropolis where it feels like construction never ends, with a sprawling skyline and continuous outward expansion. In fact, President Hassan Sheikh Mohamud formally recognized three new districts in March 2024, one of them being the district in Darusalam, located in the northern part of the city, which may be more familiar to some of you in the diaspora. And so then it all started to make sense.

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As for why this is happening, Mogadishu is enjoying relative peace and stability after a long and devastating civil war. The government has worked hard—and continues to work hard—to rebuild key institutions and deliver basic services. This progress has attracted individuals and businesses, both from within the country and from abroad. Somalia is inspiring confidence among those who have stayed away for a long time, and the government has made it clear that the country is open for business.

You can think of it as a “born-again” country requiring significant rebuilding after the civil war—in areas such as institutions, industry, and, clearly, real estate. For those who recognize the opportunity, Somalia offers immense untapped economic potential.

What Does This Mean for You and Me?

If you’re part of the diaspora, like I was, think about how you’d like to be part of Somalia's new story. I assume you work hard abroad, as I did for a long time. In today’s ever-changing and dynamic world, I believe it’s always wise to have something in your ancestral home. Even if it doesn’t provide immediate benefits, it’s something you can pass on to your children and future generations.

Secondly, let’s say you’re someone for whom that idea isn’t a priority, and you’ve put down roots where you are. Even for you, the investment potential that an emerging country like Somalia can offer is worth exploring. I hope to convince you of this in our upcoming posts.

Anyway, that brings us to the end of our first post. Please share your thoughts and comments about the post or investing in Somalia!