Somalia’s newly launched National Securities Exchange (NSES) is preparing to open to public investment, with plans to sell up to 20 percent of its shares and debut listings from the telecommunications and energy sectors within the next few months.

 

The exchange, inaugurated in June, marks a pivotal step in Somalia’s financial evolution and aims to start trading in early 2026.

It is seeking about $2 billion in investments from the Somali diaspora to strengthen operations, according to chief executive Yasin Ibar.

“Somalia has a strong diaspora community, and the country receives nearly $2 billion annually, which is currently used primarily for household consumption. We thought creating a platform — a securities exchange — for diaspora investments would make the country more viable and attractive for investment. This way, funds sent home would support not only consumption but also productive investment,” Mr Ibar told The EastAfrican.

He said the exchange plans to float up to 20 percent of its shares to the public over the next five years, broadening ownership of an initiative now fully private.

While some companies are struggling, we must avoid that path by having a clear business plan for this securities institution. Investor and issuer awareness remains low, and our goal is to ensure that individuals, companies, and SMEs can access formal capital markets.”Mr Ibar said several companies in the telecommunications and energy sectors have expressed interest in listing, with the first IPOs expected as early as January or February 2026.“We’ve engaged many stakeholders, including potential listing candidates. The telecom and energy sectors have shown strong interest, asking detailed questions about joining the market. We expect them to be among the first to list,” he said.

The exchange is initially targeting energy, telecommunications, banking, real estate, and agriculture. It also plans to issue government-backed Shariah-compliant Sukuk (bonds) to finance infrastructure and development projects, as well as Real Estate Investment Trusts (REITs).“At this early stage, we are focused on laying the foundation for a market where all products are primarily Shariah-compliant,” Mr Ibar noted.

The NSES was established by local investors and financial experts to create a transparent and robust marketplace. It will operate as a private Self-Regulatory Organisation (SRO) working with public institutions to ensure integrity and transparency.

The six East African exchanges — Kenya, Uganda, Tanzania, Rwanda, Ethiopia, and Somalia — are working under the East African Securities Exchanges Association (EASEA) to integrate regional stock markets.

In January, Ethiopia launched the Ethiopian Securities Exchange (ESX), ending a 50-year absence of a stock market since share trading was abolished in 1974 following Emperor Haile Selassie’s overthrow.​

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