Mogadishu, Somalia – Somalia’s Upper House of Parliament has given its approval to the new Somalia Investment Law (2025), marking a significant step towards enhancing the country’s investment climate. The law establishes the Somalia Investment Promotion Agency (SOMINVEST), which will operate under the Ministry of Planning, Investment and Economic Development and the National Investment Council.
The Upper House approved the Investment Authority Bill on Saturday, November 29, 2025, during its 10th session, with a unanimous vote of 29 senators in favor, and no objections or abstentions. This follows the House of the People’s initial approval of the bill in October 2024. The bill now awaits presidential approval to become law. According to reports from dawan.africa, the establishment of the Somali Investment Authority is expected to streamline the investment process, provide legal safeguards, and facilitate efficient management of investments.
The new law outlines specific procedures for managing investments under $100 million, including regulations for registering and approving such investments. It also includes provisions for appointing a Director and Deputy Director of the Somali Investment Authority and emphasizes investment protection to safeguard local and foreign investors from risks. The creation of a one-stop-shop for investors is another key feature of the bill, aimed at simplifying the investment process. Minister of Planning, Investment, and Economic Development, Mohamud Abdirahman ‘Beene-Beene’, expressed gratitude for the Upper House’s role in passing the bill, noting it as a critical step in modernizing Somalia’s economy and attracting long-term investment, as reported by sonna.so.
The approval of the Somalia Investment Law (2025) is seen as a crucial move towards attracting both domestic and foreign investment to Somalia. By establishing a clear and streamlined investment framework, the country aims to improve its investment climate and promote economic growth. As Somalia continues to rebuild its economy, the passage of this law is expected to play a significant role in shaping its economic future.
With the bill’s focus on investment protection and facilitation, Somalia is taking steps to align its investment policies with international best practices. The Somali Investment Authority is expected to be a key player in promoting investment opportunities and ensuring that investors’ rights are respected. As the country moves forward with implementing the new law, it is likely to attract increased attention from investors looking to tap into Somalia’s economic potential.
Source: sonna.so
