Somalia’s parliament has today approved the Investors and Investments Protection Bill which aims to protect both foreign and domestic investments within the country. The bill was drafted and presented to the cabinet by the Ministry of Planning, Investment and Economic Development.
The bill is intended to improve the investment climate and encourage economic growth and development. The bill further helps promote investment and ensure fair treatment of investors, fair and equitable treatment of investors and investments within the territory of the Federal Repuiblic of Somalia.
Privisions of the law intended to facilitate the establishment of investments and provide legal protection to investors which incorporates the Most Favoured Nation (MFN) Treatment, which states that foreign investors should be treated no less favourably than investors from other countries as well as National Treatment.
Once the bill becomes law, foreign investors will be able to freely transfer funds to and from the country, and repatriate their investments in the event of any unforeseen circumstances. The bill recognizes the sovereign right of the government to regulate and manage its resources but also provides for fair compensation to investors in the event of expropriation as well as indirect expropriation.
One of the major areas of focus of this law is on grievance management and dispute resolution. It provides a mechanism for investors to file grievances and seek redressal of their complaints. It also provides for dispute resolution through arbitration or other means.
Overall, the Investors and Investments Protection Bill is a positive step towards improving Somalia’s investment climate and promoting economic growth. By providing a transparent and predictable legal framework for investors, the bill will help attract much-needed foreign investment and create job opportunities for the country’s citizens.
