DUBAI: Somali President Hassan Sheikh Mohamud and UAE business leader Badr Jafar issued a strong call to action at the World Economic Forum on Tuesday, urging global leaders to adopt innovative strategies to address the challenges facing fragile states.
Their roadmap emphasized shifting from dependency on aid to building economic resilience and sustainable development through investment and collaboration.
“Fragile states like Somalia are brimming with untapped potential,” President Mohamud said.
“We are not asking for handouts. We are asking for investments in our people, in our ideas, and in the future of nations that are too often written off.”
Mohamud stressed the importance of capacity-building within state institutions as a critical step in restoring public trust.
“Stability comes from within. It begins with functional institutions that citizens can rely on,” he said, referencing Somalia’s ongoing journey of recovery after decades of conflict.
Badr Jafar, CEO of Crescent Enterprises, echoed Mohamud’s sentiments and emphasized the private sector’s role in fostering resilience.
“The private sector must be seen as an equal partner in building resilience,” Jafar said.
He outlined four key challenges for fragile states and the private sector’s role in overcoming them:
- A shift is needed from charity to sustainable investment, essential for empowering local economies and fostering long-term growth.
- Small and medium-sized enterprises are often overlooked in humanitarian efforts, despite their potential to create jobs and stimulate economic growth in fragile regions.
- A lack of clear and structured platforms prevents businesses from engaging meaningfully in recovery efforts, beyond simply offering donations.
- Breaking the “dependency traps” created by long-term aids reliance, with innovative financing models such as blended finance essential for stimulating growth.
“Fragility is not just a government issue; it’s a societal issue. And businesses are part of that society,” he added, urging deeper collaboration between governments and private enterprises to drive sustainable change.
While the panel was dominated by the two men’s impassioned appeals, World Bank Managing Director of Operations Anna Bjerde and Citigroup’s Ernesto Torres Cantu provided measured perspectives.
Bjerde stressed the need for better coordination among international donors to enhance the impact of aid, while Torres Cantu highlighted the risks faced by private investors in fragile economies.
The discussion concluded with consensus on the importance of a multi-faceted approach to tackling fragility.
Local leadership, innovative financing mechanisms and strong public-private partnerships emerged as critical pillars for transforming fragile states into thriving economies.
