A New Era for Somalia’s Financial Landscape
Yasin M. Ibar, the CEO steering one of Somalia’s most ambitious economic transformations, has taken a bold step by establishing the country’s first-ever securities exchange. In an exclusive interview on the sidelines of the East Africa Capital Markets Conference in Kampala, he discussed the significance of this initiative and its potential to reshape the nation’s economic future.
The National Securities Exchange of Somalia (NSES) represents a new kind of reform, one anchored not in aid but in investment, trust, and regional integration. This move marks a pivotal moment in Somalia’s journey towards economic stability and growth.
The Significance of the National Securities Exchange of Somalia
The launch of the NSES is more than just an institutional milestone; it signifies a new chapter in Somalia’s economic transformation. Following debt relief, the country has set out an ambitious National Transformation Plan aimed at attracting capital, strengthening governance, and driving long-term growth. The Exchange plays a central role in this vision by providing a formal market that channels savings, remittances, and private capital into productive investments.
Somali businesses will gain access to a regulated platform to raise long-term finance, while investors will benefit from a transparent market that reflects the country’s reform progress. Opportunities span across various sectors such as telecoms, renewable energy, infrastructure, and real estate. These industries are already attracting attention from investors, and the NSES will serve as the gateway for that capital.
Cross-listing is at the core of the strategy. Active conversations are underway with four Kenyan companies in logistics, financial services, and real estate that see Somalia as a growth market. The goal is to extend this pipeline across East Africa, making NSES a bridge for regional and diaspora capital.
Through membership in the East African Securities Exchanges Association (EASEA), the NSES is harmonizing rules and technical systems with peers in Nairobi, Kigali, Dar es Salaam, and Kampala. This ensures that Somali securities can eventually trade seamlessly across the region, positioning Somalia not as a newcomer but as a connector of capital and opportunity in East Africa’s fast-growing financial landscape.
Building Investor Confidence
Trust is built through structure, not promises. The NSES has been designed as a private self-regulatory organization, operating independently but in close coordination with the Central Bank of Somalia and the Ministry of Finance. A comprehensive Rule Book is being developed to govern listing, trading, membership, surveillance, and dispute resolution, ensuring fairness and transparency from the start.
Every listed company will publish audited financial statements and comply with international reporting standards, while continuous-disclosure rules ensure investors always have reliable information. A Shariah Advisory Board is also being established to review all investment products, ensuring compliance with Islamic finance principles.
A nationwide investor education program is being rolled out, working with chambers of commerce, universities, and diaspora groups. Step by step, the public is being prepared to understand capital markets, giving investors confidence that the exchange is being built on integrity and inclusivity.
Regional Integration and Knowledge Exchange
Participation in regional platforms like EASEA helps Somalia fast-track integration, knowledge exchange, and cross-listing opportunities. Being part of EASEA gives immediate access to shared expertise and technical cooperation with established markets. It allows learning from proven systems in Nairobi, Kigali, and Dar es Salaam, and adopting compatible standards on trading, settlement, and disclosure.
This regional alignment is shaping the NSES roadmap, ensuring that Somali companies can eventually cross-list across East Africa, and that regional investors can seamlessly trade Somali securities. Interest from Kenyan firms shows how regional issuers already view Somalia as an extension of East Africa’s investment landscape.
Governance and Transparency
Strong governance frameworks are the backbone of any successful exchange. The NSES operates as a self-regulatory organization (SRO), enforcing its own rules on trading, membership, and disclosure while coordinating closely with the Central Bank of Somalia and the Ministry of Finance.
This model mirrors global and regional best practices. The Nairobi Securities Exchange successfully operated as an SRO for over 40 years before Kenya’s Capital Markets Authority was formally established. The same principle is being applied in Somalia: ensuring strong oversight through internal governance while collaborating with public institutions on broader financial reforms.
The framework includes strict listing and disclosure requirements, continuous reporting obligations, and enforcement mechanisms to protect investors. International standards such as segregation of client funds, independent audits, ESG criteria, and whistle-blower protections are embedded alongside compliance with Islamic finance standards.
Technology and Efficiency
Technology is critical for credibility and efficiency in modern exchanges. The NSES is adopting a fully digital trading, clearing, and settlement platform from day one. A digital system allows participation by Somalia’s global diaspora, enabling investors in London, Nairobi, or Minneapolis to invest directly in Somali securities through a secure digital interface.
Starting digital avoids legacy challenges faced by older exchanges, building a modern, low-cost, and inclusive market. This approach supports products like green Sukuk and PPP-linked bonds for infrastructure and renewable energy projects.
Opportunities for SMEs
Beyond large corporates, the exchange is creating opportunities for SMEs and family-owned enterprises that dominate Somalia’s economy. A dedicated SME or secondary board is being explored with simplified listing requirements and lower costs, making capital markets more accessible to smaller, family-owned businesses.
Awareness campaigns are being run in collaboration with business associations and chambers of commerce to explain how listing can help businesses grow, attract investment, and improve governance. For many Somali enterprises, listing is about more than funding—it’s about transparency and building generational value.
Milestones and Early Success
The next 12 months will focus on getting the market live, completing the digital trading system, finalizing the Rule Book, and onboarding the first issuers. By early 2026, the first listings—equities and Sukuk from leading Somali companies in telecoms, banking, and energy—are expected.
The Sukuk programme will include sovereign issues for infrastructure, followed by corporate and public-private partnership Sukuk that bring Somali and regional capital together. Each will fund real, Shariah-compliant projects with full transparency on where every dollar goes.
But the real story isn’t just listings; it’s what this means for Somalia. Savings and remittances will flow into productive investment through a regulated market, showing a country rewriting its economic story—from aid-dependent to confident, connected, and investable.
