Summary
Established in 2018, Niman Mohamed General Construction Company is a government-designated Grade 3 general contractor, which means it is qualified to engage in construction works including buildings, roads, railways, and bridges. The company is known to provide competitive services and has a positive reputation based on the projects they have completed in Jijiga, earning a name for themselves in the industry.
Investment Thesis
With a rapidly growing urban population in Jijiga, as well as most of the country, construction is a rapidly expanding industry with high demand. It is becoming one of the major economic drivers in the country, despite recent setbacks in raw material price inflation. The construction industry is labor intensive, and thus a large employer, particularly of day laborers, but also skilled technicians. Supporting a construction company in Jijiga presents an interesting investment case and a strong RLI connection, as the RLI lens can support the engagement of refugee employees.
Furthermore, affordable housing is in high demand, particularly, but not solely, for displaced populations. As such, there is an opportunity for the RLI network to work with construction companies to engage in these types of projects to support the development of inclusive housing opportunities for host and refugee communities.
Refugee Impact
Investing in construction companies, such as Niman Mahamed, would help expand operations and increase their employment capacity. Further, skills development through technical assistance and capacity building could help construction companies secure higher grade certifications that would allow them to competitively bid and win larger and more lucrative contracts, once again, expanding their hiring capacity.
With the rapid influx of IDPs in regions such as Somali, there is a shortage of adequate housing, and there is a high demand for construction companies to support housing development. With the appropriate coaching on RLI, construction companies could employ refugees, source materials from refugee-owned and managed businesses and support refugee infrastructure development, such as affordable housing.
Management
Niman Mohamed has a seven-person management team led by Abdikerim Jama.