Opportunities and challenges of foreign direct investment in Somalia’s peacebuilding and post conflict reconstruction
Amina Omar Mohamud
Foreign direct investment is being viewed as an important tool for stimulating post-conflict development and peace building in countries with fragile state institutions. This research examines the role of foreign direct investment in the post-conflict economic recovery of Somalia using a qualitative methodology based on a documentary analysis of relevant academic literature and policy documents/ reports as well as institutional data. The results show that foreign direct investment can be instrumental in creating jobs, technology transfer, and regional integration; however, it has the potential to transform Somalia's economy but its full potential is limited by ongoing instability, weak governance, and poor infrastructure. Therefore, this research concludes that one of the key ways to maximize the benefits of foreign direct investment and stimulate longterm sustainable peace and inclusive economic development in Somalia is to promote a transparent investment environment and strengthen Somalia's institutional capacity.
Amina Omar Mohamud. Opportunities and challenges of foreign direct investment in Somalia’s peacebuilding and post conflict reconstruction . Int J Finance Manage Econ 2025;8(2):1232-1234. DOI: 10.33545/26179210.2025.v8.i2.674