Somalia Market Entry

Somalia Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

It is recommended to use representatives who are serious and long-term verified by other foreign partners. Contact for the Chamber of Commerce in Hargeisa, Somaliland: www.somalilandchamber.com. Exports to Somalia are often realized indirectly using re-exporters in Dubai, which also reduces payment risks. Check smber for agriculture and fishing facts of Somalia.

The central system collapsed during the decade of civil war, and import conditions cannot be clearly specified across the board. However, commonly used documents are assumed. Protection of the domestic market is not centrally implemented.

Forms and conditions of operation on the market

Procedure according to the Doing Business/Somalia website:

Registration of the name of the new company with a notary public.

Verification of the uniqueness of the name on the list of the Ministry of Trade and Industry of Somalia.

The notary public verifies the memorandum of association and the articles of association of the company (must contain information about shareholders and 2 photos for each, their shares, name and logo of the company, physical addresses, copies of passports), the fee is usually 100 USD.

Obtaining a license – no fixed fee; the certificate is issued by the relevant municipality and must be publicly displayed.

Obtaining business registration at the Ministry of Trade and Industry, Dept. of Business Registration.

Opening a bank account (in Mogadishu: International Bank of Somalia, Dahsal Bank, Premia Bank).

Acquiring a company stamp.

Marketing and communication

It is recommended to use the personal contacts of a reliable representative – partner.

Issues of intellectual property protection

Intellectual property protection is very low.

Public procurement market

Information on published tenders can be obtained on paid internet portals, e.g. https://www.tendersinfo.com/global-somalia-tenders.php

Payment terms, payment ethics and resolution of commercial disputes

The risks are determined by the overall situation in the country. According to the OECD classification (and by extension EGAP), Somalia is rated as uninsurable. Barter trade is used, in other cases it is recommended to use an irrevocable letter of credit opened with a reputable foreign bank. Any business activities are highly risky.

Visas, fees, specific conditions for traveling to the territory

Travel to Somalia is not recommended due to the security situation. The exception is a visit to the Somaliland region, where the security situation is currently good compared to the rest of the country. The assumption is that the passenger is expected at the airport in Hargeisa by a serious partner who will pick him up and accompany him. There are two direct flights (Ethiopian Airlines) daily between Addis Ababa and Hargeisa. In any case, it is still advisable to inform yourself about the current security situation and it is recommended to inform yourself about the trip of the Embassy of the Czech Republic in Addis Ababa. Any necessary business trip to Mogadishu and other regions of the country should be consulted in advance and informed about the current security situation. In Somaliland, it is possible to stay, for example, in the Maansoor and Ambassador hotels, which are used by most foreigners.

An entry visa to Somaliland can be obtained upon arrival for a fee. For transportation around the city, it is advisable to arrange with a local partner or use a local taxi (mostly unmarked, the price is specified in advance).

Employment of citizens from the Czech Republic

ZÚ Addis Ababa does not have relevant information on employment opportunities for foreigners.

Fairs and events

Activities of the Somali Chamber of Commerce and Industry: www.somalichamber.so/?post_type=event

The “Somaliland International Trade Fair” is held irregularly in Somaliland’s capital, Hargeisa, most recently in 2018. The “Somaliland Industrial Trade Fair” was held in December 2018 and 2019. The Embassy of the Czech Republic in Addis Ababa registered only participation from neighboring Ethiopia. Somaliland Chamber of Commerce: www.somalilandchamber.com

The dates of fairs and conferences are being canceled and postponed in 2022 in connection with the spread of the coronavirus. The Embassy of the Czech Republic in Addis Ababa therefore recommends checking the current situation by asking the Somali and Somaliland Chamber of Commerce.

Somalia Market Entry