Belize based venture capitalist company Kilimajaro Capital is calling on the World bank to re-invest in the Amsas-Coriole-Afgoi (ACA) Block of almost 1.2 million acres of gas situated some 50 Km from the Somalia Capital Mogadishu to revamp the economy of Somalia and help improve the security situation of the country.
With an estimated worth of $US 3.75, the block which is 51 percent owned by the Somalia government could provide badly needed revenue for the government but only after more investment from stakeholders. Kilimanjaro Capital has a 5% interest in the block and according to its CEO Zulfikar Rashid, “…the development of the ACA Block is vital to not only to the national economy of Somalia but its security. Extremism can only be prevented through economic opportunity.”
The Somali government with the help of African Union peacekeepers is presently embroiled in a long running with Islamist fundamentalist group Al Shaabab that wants to introduce strict Sharia rule in Somalia.
Still on the necessity to develop the block to help Somalia, Mr Rashi stated ““The commercial potential of the ACA Block is not just as an export resource but also as an inexpensive source of natural gas for local industry. Kilimanjaro envisions that a Somalia Free Trade Zone could be built around the presence of this abundant, affordable and clean energy resource. This type of project which equally emphasizes local development and export revenue will be appealing to both the World Bank and Somali government.”
The ACA Block was original drilled by Somalia Sinclair Oil in the 1960’s and found to be extremely promising. The block was nationalized by the Somali government in the 1970’s and drilled in the 1980’s with World Bank financing. The Somalia civil war intervened and in the Transitional Somalia government assigned the ACA Block to Amsas Pty. in 2008. Kilimanjaro signed a farm out agreement with Amsas in 2013.
Kilimanjaro Capital has economic interests in emerging African countries including Biafra in Nigera, Cabinda in Angola, Southern Cameroons and Matebebeland in Zimbabwe