Somalia is banking on its multimillion-dollar airport project in Mogadishu to raise its profile in the region as the Horn of Africa country seeks a major role in the global economy.

And despite security and political challenges, officials in Mogadishu say the project could open the country to the world and allow more visitors to explore the economic opportunities there.

On Thursday, President Hassan Sheikh Mohamud launched the New Mogadishu Development Corporation (NMDC), a remodelling project that aims to reshape the capital’s economic landscape.

The ambitious plan includes the construction of a modern airport, seaport and special economic zone, all designed to stimulate growth and attract investment.

According to a statement released on Thursday, Phase I of the new airport will handle five million passengers and up to 130,000 flights a year and is expected to cost $643 million.

Shares in the New Mogadishu International Airport (NMIA) will be available to investors at $35.52 per share and the airport’s internal rate of return is forecast to be just under 40 percent, with a payback period of 2.7 years.

Speaking at the grand inauguration ceremony, President Mohamud said his government sees the project as the future of Somalia, where trade and investment, not war, would be the hallmark of Mogadishu.“Today, we embark on a journey of progress and prosperity, building a brighter future for all,” he said, stressing that the initiative demonstrates the resilience of the Somali business community.“Somali business people have stepped up to provide essential services during challenging times, proving their commitment to the nation’s progress,” he added, recalling the perseverance of the business community during years of civil war.

By acting as a cornerstone investor, NMDC will seek to remove barriers to investment, generate a positive financial return and leverage private capital, the Somali leader said.“This will provide an unrivalled opportunity for local and international investors, seeking strong returns in an emerging market with significant upside potential.”

Somalia has attained relative success in the global scene recently. Since November last year, it was removed from the UN sanctions list and an arms embargo. It also got its $5 billion external debt forgiven and joined the East African Community, the eight-nation.

Most recently, Mogadishu was elected to the UN Security Council. Officials say these opportunities mean the world is ready to deal with Somalia as a partner rather than a needy state. Investment, trade deals and mutual security cooperation will now be routine, they argue.

Fardowsa Osman Egal, the Somalia Minister for Transport and Aviation, highlighted the significance of the new airport in this project.“It is a long dream that is happening now, right in front of our eyes. Due to the capacity and function of the current Mogadishu airport, which only has one runway, this new international airport will help us increase international flights,” she said.“The planned state-of-the-art airport and modern port will serve as vital infrastructure, creating a financial zone that is expected to attract local as well as international investors.”

New seaport

The New Mogadishu Maritime Port is designed with better facilities, including security for travellers, as Mogadishu seeks to raise its game to compete with bigger players in the region.

The seaport, for instance, will be strategically located along the Indian Ocean to serve as a key gateway for international trade, connecting Africa to the Middle East, Europe and Asia.

Speaking on behalf of the Somali business community, Mohamud Abdikarim Gabeyre, Chairman of the Somali Chamber of Commerce and Industry (SCCI), welcomed the creative plan.“New Mogadishu, on the northern outskirts of the capital, is a project we welcome since we noted that the Somali business community will get the priority of the investment, and we hope it will be successful,” Mr Gabeyre said.

President Mohamud had earlier inaugurated the Gateway Complex, a $400 million project earmarked to transform Somalia’s capital by introducing the country’s first five-star hotel.

Managed by the Rotana hospitality group, it will also feature an international convention centre capable of hosting up to 5,000 participants at a time.

Additionally, the project is envisaged to be complemented by a new hospital, an elite education centre, and a mix of shopping, residential, and leisure facilities.

The Horn of Africa country, including its capital Mogadishu, has long suffered from anarchy and terrorist attacks. Its leaders are striving to pave the way for new hope in development.

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