Somali business community rejects new chamber leadership

Somali Chamber of Commerce and Industry (SCCI) chairman Mahmoud Abdi Gabeyre.

Somalia's business community has rejected the Cabinet's appointment of an interim chairman to the Somali Chamber of Commerce and Industry (SCCI), arguing that the decision violates the legal framework governing the Chamber's leadership and undermines the independence of the private sector.

The Cabinet recently appointed Yasin Mahmoud Ibar as interim chairman of the SCCI, replacing Mahmoud Abdi Gabeyre.

However, the Chamber maintains that its leadership can only be determined through a democratic election conducted by members of the business community and regional chambers of commerce.

In a statement, the SCCI said the appointment contravenes the legal provisions establishing the Chamber as an independent institution representing Somalia's private sector.

"The Somali Chamber of Commerce and Industry is an independent institution representing the business community, and its leadership must be elected by its members in accordance with the law, not appointed," the Chamber said.

The SCCI cited the law governing the Chamber, together with directives issued by the Office of the Prime Minister and the Ministry of Commerce in 2017, saying they require the chairman and other office bearers to be elected by members of the business community.

According to the Chamber, Somalia's federal governance structure also requires regional chambers of commerce to participate in electing the national leadership, ensuring broad representation from across the country.

It argued that compliance with the law is essential to safeguarding the Chamber's independence, credibility and legitimacy.

The Chamber warned that government appointments to its leadership could weaken confidence among investors, development partners and international business organisations at a time when Somalia is steadily establishing itself as a key commercial hub in the Horn of Africa.

Trade between Somalia, Kenya and Ethiopia has expanded significantly in recent years, driven by growing regional integration and increased cross-border commerce.

Somali entrepreneurs continue to play a leading role in logistics, livestock exports, telecommunications, construction and financial services, further strengthening the country's position in regional trade.

Analysts say strong, independent business institutions are essential for attracting investment and sustaining Somalia's economic reforms.

They argue that adherence to established legal procedures reinforces investor confidence and demonstrates the country's commitment to the rule of law.

The SCCI has urged the Federal Government to respect the legal framework governing the Chamber and facilitate a transparent electoral process.

It said it would not recognise an interim chairman or administration appointed outside the procedures established by law, insisting that only leaders elected by the business community have the legitimacy to represent Somalia's private sector at home and abroad.

Business leaders have also praised outgoing chairman Mahmoud Abdi Gabeyre, saying his tenure helped place Somalia firmly on the regional business map.

They credit him with representing the country at major regional and international investment forums, championing private-sector reforms, attracting investors and promoting Somalia as an emerging destination for trade and investment.