Opinion -Time to Re‑shore Capital in a Slowing Global Economy

Global economic growth is slowing. Across advanced and emerging markets alike, the era of easy credit, rapid trade expansion and high foreign direct investment has given way to uncertainty, as geopolitical tensions, rising protectionism and policy unpredictability dampen prospects for investors everywhere. 

Against this backdrop, Somali entrepreneurs in the diaspora face a strategic inflection point: whether to continue allocating capital abroad or to re‑shore more capital into Somalia’s emerging economy. 

The macroeconomic backdrop is sobering. After years of post‑pandemic volatility, world growth is projected to remain below historical averages. 

According to the World Bank, global GDP growth in 2024–26 is expected to be slower than the decade before COVID‑19. The IMF’s October 2025 World Economic Outlook forecasts global growth slowing from 3.3% in 2024 to 3.1% in 2026, with advanced economies barely above 1.5%.

These trends reflect tighter financial conditions, policy uncertainty, and trade fragmentation.This slowdown matters for Somali investors. Markets abroad are more sensitive to economic stress, increasing risk premiums and reducing capital availability. Political and social hostility toward migrants compounds this risk.

In Kenya, remarks by the former Deputy President questioning the Somali entrepreneurs’ economic role in Kenya underscored the fragility of long-settled communities.

In South Africa, repeated attacks on migrant-owned businesses have destroyed lives and capital. Abroad, exclusionary rhetoric, including from the United States, highlights that economic contribution alone neither guarantee security nor profitability. It is into this context that Somali investors must reconsider strategy.

The Case for Re‑shoring Capital

Re‑shoring — the deliberate reallocation of financial capital back into home country, in this case Somalia — is not a retreat from global markets, but a strategic move to anchor wealth in a growing, reforming economy while maintaining regional reach as may be advantaged by the following:

Somalia has one of the youngest populations globally, with more than the majority under the age of 30. This youthful workforce offers productivity, creativity, and a ready consumer base. Capital invested locally can scale operations while generating domestic employment, creating a multiplier effect that stimulates demand and fosters long-term growth.

From fisheries and livestock to arable land and renewable energy potential, Somalia’s resources are underleveraged. Its strategic location along the Indian Ocean and the Gulf of Aden trade corridors connects it to East African and Middle Eastern markets. Anchoring capital at home allows entrepreneurs to develop integrated supply chains and capture value from both domestic and regional trade.

Investment codes, property, investment protections, and institutional frameworks are gradually improving. Capital invested locally benefits from these reforms, gaining early access to structured opportunities while positioning entrepreneurs ahead of potential competition.

Lastly Somalia’s ports and logistics corridors are increasingly integrated with the wider East African region. Home-based financial hubs enable efficient management of production, financing, and logistics, allowing Somali businesses to compete regionally without exposing capital to external political risk.

A Successful Model: Rage Abdisalam