Somali Stock Exchange
 | |
| Type | Stock exchange |
|---|---|
| Location | Mogadishu, Somalia |
| Founded | (Registered in 24 March 2011), (Started its Operations 1 September 2015) |
| Key people | Hassan Dudde, (CEO) |
| Currency | SOS & USD |
| No. of listings | 8 |
| Indices | SSE All Shares and OIC COMCEC 50 Shares |
| Website | www.sse.so |
The Somali Stock Exchange (SSE), also known as the Somalia Stock Exchange, is the national bourse of Somalia founded by SEF.[1]
Overview
The Somali Stock Exchange (SSE) was founded by the management of the Somali Economic Forum (SEF), whose principal aim is to encourage Foreign Direct Investment (FDI) into Somalia’s growing economy. The company has already made history by becoming the first ever stock exchange to operate inside of Somalia, with the first shares sold on 1st September 2015 at the exchange’s offices in Garowe, Mogadishu and Hargeisa.[1]
Historically, shares in Somali businesses have been bought and sold informally through close networks. However, economists have noted that in recent years, the emergence of various stock exchanges in African states has played a pivotal role in fostering economic and private sector growth.[1] The substantial demand for capital is increasing by the day for Somali businesses, consisting of both large firms and SME’s.[2] According to the latest figures, the capital inflow to Somalia is increasing and it is being driven by both the Somali diaspora and foreigners.[1]
The SSE has created an entirely new capital market, where buyers of financial securities can do business with sellers in a more organised, formal, secure and profitable way.[3] The aim was to create a sustainable capital market in Somalia, where holders of financial securities such as stocks, bonds and buyers or investors can meet and share in long-term growth.[4]
Activities
Main Market
The SSE’s Main Market listing offers greater opportunities for access to capital markets and investments. Importantly, a public list or initial public offering (IPO) enables firms to make company shares liquid, in turn paying dividends to shareholders.[5] Many investors will only invest in listed companies, simply because they are subject to stricter requirements and greater scrutiny. For potential investors, this inspires a higher level of confidence when investing in listed shares. [6]
With offices in large commercial Somali cities such as Garowe, Hargeisa, and Mogadishu, the SSE meets the needs of investors and firms from diverse sectors.[7]
OTC Market
The SSE OTC mechanism provides a transfer of ownership mechanism for unlisted financial securities.[8] This service is suitable for companies that are not ready to fully list their company on the stock exchange, but want to trade their shares. Transactions are announced and the transfer ownership is validated through the OTC.[8]
Products and services
Stock, Bonds (Sukuk), Commodities
See also
- Central Bank of Somalia
- Ministry of Natural Resources (Somalia)
- Ministry of Industry and Trade (Somalia)
- Ministry of Finance (Somalia)
- Federal Government of Somalia
References
- ^ a b c d "The UN Sustainable Stock Exchange Welcomes The Somali Stock Exchange". sseinitiative.org. 17 June 2019. Retrieved 16 July 2022.
- ^ Minney, Tom (14 May 2014). "Nairobi Securities Exchange plans to offer 38% of shares in June IPO". AfricanCapitalMarketsNews.com. Retrieved 19 May 2014.
- ^ "Somali-Mogadishu Exchange Market". NewsGhana.com.gh. 23 November 2015. Retrieved 23 November 2015.
- ^ "Somalia's new bourse sees seven firms listing on opening in 2015". Reuters. 26 November 2014. Retrieved 26 November 2014.
- ^ "The Somali Stock Exchange trades its first shares". goobjoog.com. 12 September 2015. Retrieved 16 July 2022.
- ^ Abdirahman Yusuf,"Creating a stock exchange for Somalia". somaliainvestor.so. 20 May 2016. Retrieved 16 July 2022.
- ^ Ayab Abdi Diriye,"Somali stock exchange: Unleashing growth". somaliainvestor.so. 11 July 2017. Retrieved 16 July 2022.
- ^ a b "Somali Stock Exchange: Challenges and achievements". cnbcafrica.com. 24 May 2019. Retrieved 16 July 2022.