Somalia has launched its first national stock exchange, marking a major shift toward formal capital markets after decades of economic informality. With plans to begin live trading by 2026, the bourse is expected to attract diaspora and foreign investment, support local enterprise, and signal confidence in Somalia’s broader reform agenda.
Bonface Orucho, bird story agency
Somalia has launched its first-ever national stock exchange, signalling a bold step away from decades of instability and toward market-led growth and financial inclusion.
The launch of the National Securities Exchange of Somalia (NSES) is being hailed as a major milestone in the country’s journey to rebuild institutions and reframe its image as a frontier of opportunity rather than crisis.
On June 19, the bourse was officially unveiled in Mogadishu, offering a platform for trading equities and Sharia-compliant Sukuk bonds. The exchange is expected to start live trading in early 2026, initially targeting listings from sectors such as banking, telecoms, real estate, and energy.
Speaking during the launch, Somali Prime Minister Hamza Abdi Barre noted that the NSES “marks a new dawn” for Somalia’s economy. “We are opening the gates to investment, to entrepreneurship, to progress,” he said.
According to Somalia’s Finance Minister Bihi Iman Egeh, the exchange will be critical in helping local businesses access capital, while also attracting diaspora and foreign investment into the economy. The move comes as Somalia embarks on broader structural reforms aimed at stabilising and modernising the economy.
“This platform is not just about trading shares. It’s about trust, governance, and long-term confidence in Somalia’s economic future,” said NSES CEO Mohamed Osman Ali.
The NSES launch places Somalia in the company of other Horn of Africa countries like Ethiopia, which inaugurated its own securities exchange, ESX, in mid-2024.
Just this April, Ethio Telecom, Ethiopia’s largest telco, completed a record-setting share sale that drew over US$300 million in subscriptions, validating market appetite for well-established state-owned enterprises.
In both countries, stock exchanges are part of wider market liberalisation strategies. Ethiopia has begun privatising state assets and signalling openness to foreign land ownership. Somalia’s exchange adds momentum to a similar reform push, coming on the back of macroeconomic achievements like HIPC debt relief and the lifting of decades-old sanctions.
Somalia’s business landscape has remained largely informal for years. While the private sector has thrived in pockets, especially in telecommunications and remittances, access to structured capital markets has been nonexistent. The NSES is designed to bridge this gap.
The exchange also hopes to tap into the vast Somali diaspora, whose remittances are estimated to exceed US$1.3 billion annually, according to the World Bank. This is more than the total sum for humanitarian aid to the country, which reaches US$800 million at its highest.
Officials believe the formal platform could redirect a portion of these funds into productive, equity-based investments at home.
Neighboring countries have welcomed the launch. Financial analysts across East Africa have noted the symbolic and practical importance of Somalia’s move.
“It’s a critical signal to markets across the continent: that economic resilience can emerge even in post-conflict settings,” said Clinton Apollo, a Nairobi-based investment strategist.
Frank Mwiti, Chief Executive Officer of the Nairobi Securities Exchange, believes Somalia’s steady approach could yield long-term benefits.
“By starting steady and following the right standards, Somalia can unlock real economic potential. This exchange offers everyday people the opportunity to invest, grow, and contribute to a more inclusive and prosperous future,” he wrote on LinkedIn.
Pan-African capital markets remain uneven. South Africa and Morocco lead the pack, but exchanges across the continent continue to grapple with low liquidity, shallow investor pools, and weak regulatory enforcement.
Only 14 companies went public across Africa in 2023, raising about US$1.3 billion, according to the African Securities Exchanges Association (ASEA). In comparison, India, another fast-growing economy, had 57 new listings that brought in over US$7 billion during the same period.
According to Jean-Marc Kilolo, Economic Affairs Officer with the Economic Commission for Africa (ECA), strengthening domestic capital markets is “critical for financing Africa’s development ambitions.”
For companies operating in Somalia, the NSES offers a chance to formalise their operations and raise capital. Officials are targeting listings from at least 10 firms in the next two years, and are currently drafting listing and compliance regulations to guide the onboarding process.
Still, challenges remain. Somalia’s financial systems are young, regulatory oversight is still being developed, and political volatility continues to pose reputational risks. Analysts warn that liquidity and investor protection will need close attention if the NSES is to become a trusted exchange.
But in a region where most stock exchanges are struggling to attract new listings, Somalia’s entry is seen as ambitious and timely. It may be nascent, but it speaks to a larger transformation taking root in Mogadishu.
“With the new exchange, Somalia is sending a clear message: it is ready to be part of the global financial system, not as a beneficiary of aid but as a participant in investment, innovation, and enterprise,” Apollo, the investment strategist, noted.
The latest Somalia Economic Update projects modest medium-term growth, with GDP expected to expand by 3.7% in 2024 and 3.9% in 2025. The outlook reflects ongoing economic reforms and improved investor confidence, supported by rising infrastructure and social sector spending, even as climate shocks continue to constrain overall growth.
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