Farmaajo assents to Company, Public Finance Management laws, says crucial for economic reforms

President Mohamed Farmaajo has today signed into law the Companies Act and Public Finance Management Act noting the two pieces of legislation would be instrumental in setting the framework for economic reforms and bolstering the war against corruption in Somalia.

The President said in a statement the Company law in particular would be instrumental in promoting
trade, job creation and investment opportunities in the country while protecting the citizens’ rights.

The passage of the two laws, the head of state noted, demonstrated his government’s efforts ‘over the
last few tears to solve the challenges faced by Somali businesses and ensure the credibility of
international investors.

The two sets of laws were passed Wednesday by the Lower House of the Federal Parliament.

The Public Finance Management Act is crucial in mainstreaming prudent management of resources in
public institution by instilling best practices and holding accountable those tasked with management of
public resources.

The Act will also be significant in taming corruption in public institutions as Somalia seeks to shed off the ‘most corrupt’ tag attested by subsequent Transparency International indices.

The passage of the Company Law Bill will also be instrumental in establishing the legal framework under
which companies are established, run and even dissolved in Somalia.

It also provides the regulatory framework for licensing and management of both public and private companies in the country.