Horn African Investors Advised to Prioritize Native Countries Amid Regional Instability

Horn African investors are being urged to focus their investments on their native countries, such as Somalia, Ethiopia, Eritrea, and Djibouti, rather than in East Africa. This recommendation is driven by concerns over instability, insecurity, and geopolitical competition in the East Africa region, which can disrupt investments and lead to financial losses.

The East Africa Community (EAC) region, which includes Kenya, Uganda, and Tanzania, is currently marked by significant insecurity and ongoing crises. Situations such as Burundi's instability, the DR Congo's prolonged civil war, and South Sudan's continuous conflict since its inception 13 years ago contribute to a volatile investment environment. Additionally, tensions between Uganda and Rwanda over border issues and territorial disputes further complicate the region's stability.

This topic matters because it affects the economic stability and growth of the Horn of Africa region, which has broader implications for global trade and development. If investors prioritize their native countries, it could lead to increased economic growth, job creation, and regional stability, resulting in benefits for the local population and the global economy.

In contrast, the Horn of Africa States region, comprising Somalia, Ethiopia, Eritrea, and Djibouti (SEED countries), presents a more promising investment environment. This region boasts a vast area of 3.8 million square kilometers and a population of 216 million people. It is rich in natural resources and has a large youthful workforce, making it an attractive destination for investors.

Horn African entrepreneurs are encouraged to invest in their native countries to create jobs, pay taxes, and contribute to regional stability. By doing so, they can help address gaps in infrastructure, mitigate domestic conflicts, and reduce political instability. This approach also aims to draw the youth away from terror groups and negative political influences by providing stable employment opportunities.

Businesses have three key responsibilities: paying taxes to fund government services, employing local youth to create jobs, and promoting wealth creation and innovation within their native countries. By focusing on these areas, Horn African investors can contribute significantly to the economic growth and stability of their home regions.

The geopolitical dynamics of the Horn of Africa States are complex, with intense competition involving international and regional powers. However, the region's geostrategic location and abundant resources offer substantial opportunities for investors who are willing to overcome these challenges.

To summarize, Horn African investors are advised to prioritize investing in their native countries to leverage the region's potential while mitigating the risks associated with East Africa's instability. By doing so, they can contribute to regional stability, create jobs, and promote economic growth.

Key Takeaways

• Horn African investors should prioritize investing in their native countries.
• East Africa region is marked by instability, insecurity, and geopolitical competition.
• Horn of Africa States (SEED countries) offer a more promising investment environment.
• Investing in native countries can create jobs, pay taxes, and contribute to regional stability.
• Businesses have key responsibilities: paying taxes, employing locals, and promoting wealth creation.