Somalia | Economy and Infrastructure News

[Waaberi]

Originally Posted by Rabban Al Xaawi

Since Banana's where a major income earner in the past and even during the civil war it is good to see the private sector starting to acclimatise towards an export led regeneration of this important subsector

shouldn't Somalia focus on cereal grains like Maize(corn), Rice, Sorghum,millet, so many of our people were starving just last year shouldn't we stabilize food within the country before we start exporting fruits for foreign market. this is short-sighted we might minimize short-term profits (i don't know the price of banana on international market) but we will likely might pay a heavy price down the road.

[talya]

Originally Posted by Waaberi

shouldn't Somalia focus on cereal grains like Maize(corn), Rice, Sorghum,millet, so many of our people were starving just last year shouldn't we stabilize food within the country before we start exporting fruits for foreign market. this is short-sighted we might minimize short-term profits (i don't know the price of banana on international market) but we will likely might pay a heavy price down the road.

Well said bro,waxaa arkeysaa dhul ila iyo 500 km oo dhobey ah haddana aan waxba lagu abuurin dadkana baahi iyo haraad ee uu dhimanaayaan which is a shame.Somalida beeraley mahan ee waa xoolo dhaqato. Example Gobolka Hiiraan haddi aad gaari kuu dhax marto waxaad arkeysaa Miles and Miles of Empty green land haddana waxba kama soo baxaan oo dadku ee isticmalin karan!!!!!!

[Northie]

Waaberi is absolutely right, we need to prioritize our Food security first. nothing wrong with exporting the bumper banana crops we have, but in the near future we have to really start developing an agricultural sector.

[abdihamid]

Originally Posted by A'A

Thanks Talya.. ain't in position to reply a plebeian person. But I am here to present contemporary the facts that subsist in this present time in Somalia's farming land area .Despite the fact, I was just trying to highlight some contentious issue about what is happening now on there, but in adversely, some individuals doesn't understand or has no clue what I am gesticulating. Again, those people have been victimized since the country's law and order has aborted, and now this fake company had employed them to work their own land as servitude and wanted to benefit their cheap labour from this unlawful practices. I think anyone who thinks this is a lark history, perhaps we can assume that he might be the part of these intrigue schemes and wants to suck the blood of these victim families.

You are clearly a sad case of an intellectually challenged scumbag who cannot differentiate between bedtime stories and reality. Your false accusations against this company and the professional men behind it without giving a single proof of evidence shows how your substandard, victim mentally brain works. Unless you come out from your self induced come, there is no point to continue this discussion.

[Xusein]

There's no need for insults, guys.

[snomad]

lol dooda ino dejiya

[A'A]

Commercial bank building of state of Puntland is near completion

[Xusein]

Is that in Bosaso or Garowe?

Would be great if there was more info so we could make a thread on it

[talya]

Originally Posted by A'A

Commercial bank building of state of Puntland is near completion

Very modest building i must say kkkkk anyways wax la aan ayee dhaantaa.qofkii arko wuxuu kuu qaldi karaa guri caadi ah lolz

[A'A]

Originally Posted by Xusein

Is that in Bosaso or Garowe?

Would be great if there was more info so we could make a thread on it

it is Garowe

[snomad]

Originally Posted by Constantine MMX

Beledweyn River Water Filtration Plant



Press Release
Thursday, January 06, 2011

Napsure supplied a modern and state-of-the-art river water treatment plant with a production capacity of 100m3/day to Furat Mineral Water in Beledweyn, Somalia.

Naspure is a Sharjah (UAE) based and Somali owned company specialized in the design, manufacturing and installation of water treatment plants. The installation and commissioning of the treatment plant was made by local technicians following an Operation & Maintenance Manual written in Somali language without a single mistake.

The treatment plant is very modern, fully automated, compact and operated by PLC (programmable logic controller). The treatment plant removes dirt, particles, disease causing bacteria (pathogens), and viruses and produces a high quality drinking water that far exceeds WHO standards. Naspure will heavy rely on local technicians for any future water projects in Somalia.

The treatment plant is currently operated by Furat Mineral Water, a Beledweyn based company. Furat’s owner Abdulqadir Nuur Liiban is very pleased with the excellent services provided by Naspure. - Source



Company website: www.naspure.com

If the source of water is the river, is it sustainable?

[juzme123]

The final frontier for investment opportunities


Investors are waking up big time to the opportunities in Africa, but where will they be looking to put their cash in the coming year

Written by Abdirashid Duale, CEO of Dahabshiil, the largest remittance company in the Horn of Africa and one of its largest private employers

As we begin the New Year with Africa’s growth set to continue into 2013 and beyond, one key question is what and where are the opportunities for would-be investors, particularly those from diaspora communities? The world is waking up to the idea of Africa as a centre for economic growth and, in some ways, the final frontier for investment opportunities.

Many have overlooked the potential of the continent, partly because the media has tended to focus on themes such as poverty, famine, conflict and corruption – especially in sub-Saharan Africa. Although these problems still exist, this past decade has also been one of remarkable economic progress for many African countries. The media has in recent times caught up with this fact.

Market sentiment generally revolves around the BRICs (Brazil, Russia, India, China and South Africa) and Asian Tigers as being the world’s most vigorous economies. These countries have certainly flourished in the past fifteen years or so and are now significant players in the global marketplace – rightly attracting huge amounts of investment, principally foreign direct investment (FDI).

Fast-growing economy

It may be a surprise to learn that six of the world’s ten fastest growing economies during the last decade have been in sub-Saharan Africa. Overall economic activity in the region rose sharply in 2002-03, and growth has more or less remained above six per cent ever since – an expansion that was only briefly interrupted in 2009 by the global financial crisis. The continent is expected to see 5.4 percent growth this year, and more than six per cent each year for the next decade, approaching or exceeding the growth rate of Asia. Africa, in short, is the world’s next emerging market.

Oil exporters, most notably Nigeria and Angola, have performed exceptionally well as investment has poured in. Metal and mineral exporters such as Botswana, the DRC, Gabon and Guinea have also enjoyed high growth rates thanks to steady infrastructure development and strong demand for those commodities. In East Africa, Rwanda’s agriculture-based economy is expected to grow by eight per cent this year and continue at that rate for the next few years. Investment in sustainable growth through IT and education will support this.

Remittance transfers

Our company, Dahabshiil, takes much encouragement from such developments, particularly in East Africa. Dahabshiil was established in 1970 as a small trading enterprise, and became increasingly focused on remittance transfers during the 1980s. Today, Dahabshiil offers a global remittance service across 150 countries. We handle a significant share of the substantial remittances sent to the Somali territories each year by the diaspora.

It also provides money transfer and other financial services to people in many other parts of Africa, including Sudan, Uganda, Ethiopia, Djibouti and Rwanda. Diaspora investment represents the largest capital inflow for many African countries, often exceeding humanitarian aid. This flow of funding from migrants is a vital source of income that has helped to sustain and grow economies.

Of course humanitarian aid is still necessary, especially in crisis-prone areas. Dahabshiil provides services for many humanitarian agencies working in the Horn and East of Africa. Our company also does a great deal of humanitarian work in its own right. It remains imperative that development work continues.

The lifeblood Somali

Like in some other parts of Africa, the economic life of the Somali territories is dominated by the livestock trade. As is the case elsewhere on the continent, trade and commerce are the lifeblood of the Somalis, who have been remarkably successful business people. Somali livestock – including goats, sheep and camels – are highly prized and are exported to Saudi Arabia and other Middle Eastern countries each year for the Hajj, as well as during other periods.

Nevertheless, other sectors are also booming. Money transfer and telecoms have both experienced rapid growth and have developed side-by-side. Employing advanced leapfrog technology, Somali mobile networks – like those elsewhere in Africa – are cheap, efficient and reliable. Dahabshiil entered this market in 2008 with the acquisition of Somtel, a mobile telecoms and wireless internet firm.

Natural resources

Other African economies are driven by large reserves of natural resources. Exploiting these assets remains central to Africa’s progress, but it can also cause a country’s industry to become highly concentrated in one sector, making its economy more vulnerable to changing external conditions. Kenya is a good example of a country without any major mineral or fossil fuel endowments that is keeping pace with global trends and pursuing the ideal of a balanced economy.

Energy, construction and manufacturing are rapidly expanding industries across the continent, yet none of these markets would have experienced such growth without continuous remittance-based investment. Diaspora communities are often more willing to invest in what others may regards as fragile markets.

Their knowledge of the local terrain often enables them to better spot opportunities. Equally, diaspora communities are in a unique position to deliver skills training to local people, and to encourage them to stay within the country and aid its development. Finance, skills and knowledge from the African diaspora have been instrumental in the growth of the last few years, and will continue to be in the future.

A familiar presence

FDI underpins Africa’s growth economies, be it investment from the diaspora or countries with vested interests. In the Somali territories, Turkey has been particularly active, pouring cash into construction. Elsewhere in Africa, China is fast becoming a familiar presence, investing heavily in energy and other sectors, the development of which will be critical in the next phase of Africa’s economic rise.

Perhaps the most important of Africa’s resources, however, is its people. The continent is home to the world’s youngest population, with almost 200 million people aged between 15 and 25. The number of these who are pursuing secondary and tertiary education is fast rising.

This vast reserve of human capital will be central to the growth of new productive sectors just as it has been in China and India. Jobs must be created for them however – youth unemployment is currently high in many countries and was a major factor behind last year’s unrest in North Africa.

That experience in particular illustrates how vital it is for education to keep improving and for governments, regional bodies, businesses and investors to work together to create the conditions most favourable for growth and the development of new markets. If we can achieve that, those 200 million young Africans will enjoy opportunities their parents and grandparents could never have imagined.

http://www.africanbusinessreview.co....-opportunities

[juzme123]

Originally Posted by talya

Very modest building i must say kkkkk anyways wax la aan ayee dhaantaa.qofkii arko wuxuu kuu qaldi karaa guri caadi ah lolz

If I remember correctly from seeing the renders, its going to be a 5 storey building once completed. Markaa definitely ka weyn guri caadi ah sxb

[Sideway]

Agriculture for Development: the case for Somalia
Bashir Duale
Wednesday, January 16, 2013

Foreword



Worldwide agriculture and hunger eradication have taken their rightful place as a top priority. During the Rio+20 gathering, the United Nations Secretary-General Ban Ki-moon announced The Zero-Hunger Challenge, calling for an end to world hunger. In Somalia the crisis that commenced in 1991 shattered the existing economy as Government services collapsed and businesses closed. Civil war affected every aspect of Somali society. It destroyed the country’s basic infrastructure. Some 80 percent of Somali households’ income came from their animal herds or subsistence farming. The civil war led to a sharp decrease in the price of animals, drove up cereal prices, and led to a dramatic increase in food insecurity. With a new Government in Mogadishu now is the time to roll out a vision and a strategic plan to deal with not only food insecurity but also persistent hunger and malnutrition. In this writing and more to come I will attempt to make a case for Agriculture for Development. Given security is a basic prerequisite for economic growth. Agricultural development is futile if businesses and households are constantly at the risk of seeing their goods appropriated by armed groups. In a lawless environment, neither production nor trade can proceed. However, the current situation in Somalia has changed as the country is recovering from the war ravages of recent years. Studies have shown post conflict societies can indeed produce agricultural development and innovation.
Opportunities-

Focusing in agriculture investment for better future coupled with a revitalization effort will provide the largest source of employment and will direct the other economic sector such as health and education of comparative advantage. Agricultural productivity growth is single most effective driver of poverty reduction by directly raising the farmer’s income and reducing food shortage. Moreover, rising agricultural productivity encourages entrepreneurial activities such diversification into new and improved varieties, rural development services and the emergence of agribusinesses. Higher agricultural productivity is thus a precondition for economic growth and development and increasing yields is essential to raising income and reducing poverty. In the 21st century, agriculture will continue to be a fundamental instrument for sustainable development and poverty reduction. Dynamic new markets, far-reaching technological and institutional innovations, and new roles for the state, the private sector, and civil society all characterize the new context for agriculture. The emerging new agriculture is led by private entrepreneurs in extensive value chains linking producers to consumers and including many entrepreneurial smallholders supported by their organizations. The agriculture of staple crops and traditional export commodities also finds new markets as it becomes more differentiated to meet changing consumer demands and new uses and benefits from regional market integration.

Constraints-

Access to assets is major determinants of the ability to participate in agricultural markets, secure livelihoods in subsistence farming, compete as entrepreneurs in the rural nonfarm economy, and find employment in skilled occupations. Three core assets are land, water, and human capital. Yet the assets of the rural poor are often squeezed by population growth, environmental degradation, expropriation by dominant interests, and social biases in policies and in the allocation of public goods. The lack of assets where farm sizes in many the more densely populated areas are unsustainably small and falling, land is severely degraded, investment in irrigation is negligible, and poor health and education limit productivity and access to better options. In some cases, it is more a matter of institutional development, such as enhancing the security of property rights and the quality of land administration. Increasing assets may also call leveling the field to equalize chances for disadvantaged or excluded groups, such as women. Access to financial services remains pervasive too and a major barrier. The lack of credit to agriculture through public or private programs has left huge gaps in financial services.

Recommendations-

Without peace and security, adequate governance, and sound macro fundamentals, no part of any agricultural agenda can be effectively implemented. Pursuing an agriculture-for-development agenda for a country implies defining what to do and how to do it. What to do requires a policy framework anchored on the behavior of farmers and their organizations, the private sector and the state. How to do it requires effective governance to muster political support and implementation capacity, again based on the behavior of all involved—the state, civil society, the private sector, donors, and global institutions. Particularly ensuing four policy objectives agenda has proven successful. These objectives should be:

1. Improve access to assets, financial services and markets

2. Enhance smallholder competitiveness

3. Improve livelihoods in subsistence farming and low-skill rural occupations

4. Increase employment in agriculture and the rural

Bashir Duale
dualbid@msn.com
References

C, Martin Weber and Patrick Lababste. Building Competitiveness in Africa’s Agriculture. World Bank Washington, DC

Kurt Larsen, Ronald Kim and Florian Theus, Agribusiness Innovation Systems in Africa. World Bank Washington, DC

http://www.hiiraan.com/op4/2013/jan/...r_somalia.aspx

[Modern Nomad]

Somali government to modernise salary payment system

The Somali government will launch a new programme in April to pay government employees through an automated system controlled by the Central Bank of Somalia. Minister of Finance and Planning Mohamud Hassan Suleiman told Sabahi that the programme is one of several initiatives aimed at modernising the country's financial system, balancing the budget, and curbing administrative and financial corruption.

Government employees currently are paid in cash by designated accountants in their respective ministries after funds are disbursed from the Central Bank. The accountants are responsible for collecting the funds from the bank and paying each employee after he or she signs a paper receipt of acknowledgement. The process, which involves physically withdrawing and transporting large quantities of cash and filling out paper forms, often leads to delays in payments and misplacement of funds, Suleiman said.

The minister said the new system will prevent such delays and lead to better accountability and transparency in the management of public funds. With the automated payment system, every civil servant will be issued an individual account at the Central Bank where their salaries will be transferred and accessible via a bank card at the beginning of each month. The government also plans to levy taxes on cash remittance companies, telecommunication companies, qat, cigarettes, and on vendors in local markets, he said. Tariffs will also be imposed on goods coming through the ports of Mogadishu, Kismayo, Bosaso and Berbera. "We will fight administrative and financial corruption and will implement plans that will allow us to collect more taxes and keep our promises to serve the Somali people," Suleiman told Sabahi.

Transparency International, a global civil society watchdog against corruption, ranked Somalia, Afghanistan and North Korea as the most corrupt out of 176 countries in its 2012 index. Turbulent market situation The government must take more steps to manage public funds in an effort to stabilise the economy, analysts told Sabahi. Economist Bashir Mardadi Salah said a law should be enacted to ensure that salaries of public servants are paid in Somali shillings in order to stabilise its value against foreign currencies. Currently, foreign currency reserves in the Central Bank are estimated at $17 million and are declining at an accelerating rate, he told Sabahi. Salah said the government should retain any foreign currency it has to build its reserves and bring into circulation the stacks of Somali shillings that were commissioned for printing during the transitional period but have not yet been released.

Economist Hiba Abdi Khalif said that strengthening the Central Bank's position will also help halt the manipulation of currency exchange rates by unregulated independent traders. Even though Somalia's Central Bank re-opened in 2009, independent traders control exchange rates and are able to manipulate the market. Over the years, she said, traders have taken advantage of the economic turbulence created by the lack of regulations and the shortage of Somali shillings available for circulation to manipulate the exchange rates in their favour. Khalif warned against the failure of the Ministry of Finance and Planning to arrest individuals involved in rate exchange manipulation, which has affected the lives of many Somali families that depend on remittances sent from abroad. On January 17th, Somali President Hassan Sheikh Mohamud appointed economist Abdisalam Omer as the new governor of Somalia's Central Bank. Omer has worked at the World Bank and holds a doctorate in public administration from the University of Tennessee in the United States. Source: Sabahi

[Modern Nomad]

http://www.hiiraan.com/news4/2013/Ja...nt_system.aspx

[Modern Nomad]

Sri Lanka: Somalian companies after Cey-Nor boats

For the first time two Somalian companies would be purchasing four fishing boats from Cey- Nor Sri Lanka to develop their Somali fishing sector.
General Coordinator of Somali Sustainable Fishing Development and Nedsom Foundation, Guled Yusuf told Daily News Business that initially they would be purchasing a multi powered Sashimi boat and subsequently the second one later this year.
“We hope to sail in this boat in two weeks,” he said. The journey from Colombo to Somalia takes 14 days. Yusuf said that the Somali fishing industry is in its infancy and they
needed better vessels. “We first looked at Philippines but found that it was more viable to purchase boats from Sri Lanka,” he said.
He said that they met the former Chairman of Cey – Nor, Rohan Jayasinghe who offered them the sashimi boat which can even be powered by a sail and could stay longer days in water. Another attraction in the Sri Lankan made Sashimi boat was its ability to store fish in a specially designed freezer.


“Jayasinghe also offered us a comprehensive package where in the future we could build our own boats,” he said. He said that following up this proposal they would not only buy two boats but would also purchase a ‘mould’ so that they could build boats. “In addition we would also hire four Sri Lankan ship building engineers to work on a long term basis in Somalia,” he said.
He said that Somalia is a country with one of the richest fish deposits.
“However due to lack of technology and poaching by huge vessels from other countries Somalia cannot exploit the advantages of fishing. This is why we decided to develop this sector and seek Sri Lankan assistance for it.”
He said that one of the reasons for the birth of Somali pirates is the lack of employment and poverty and these developments would help to put a stop to it.
Meanwhile Ahamed Omar, Managing Director, Harbour Tuna Factory said that although they export fish they do not have a sufficient yield to increase exports. “We have sufficient export orders and are contemplating the purchase of two boats from Cey – Nor,” he added.
He also said that they want to export some of the fish to Sri Lanka and also want to promote trading and tourism between the two countries.

[Sideway]

Now this is what I call good news. Not only will they make huge profits but the fact that technology transfer is part of the deal is very farsighted of these businessmen. They might one day become the shipbuilders of Somalia.

[Ras Siyan]

Le FIDA encourage la diaspora somalienne à investir dans les zones rurales pour renforcer la sécurité alimentaire

Le Fonds international pour le développement et l'agriculture (FIDA) a annoncé lundi le lancement d'un nouveau programme destiné à encourager la diaspora somalienne à investir dans le secteur agricole de son pays d'origine afin de favoriser la création d'emplois dans les zones rurales.

Le FIDA mettra à disposition un fonds de 1,5 million de dollars pour financer des projets novateurs conçus par des membres de la diaspora. Un million de plus sera versé par les investisseurs de la diaspora pendant les quatre premières années du programme.

« Nous devons mobiliser les investissements dans le secteur agricole, particulièrement dans les pays fragiles et émergeant de conflits », a déclaré le Président du FIDA, Kanayo F. Nwanze.
« En aidant la diaspora à investir dans l'agriculture, nous créons des opportunités pour mobiliser de nouvelles ressources pour réaliser notre objectif commun ».

D'après le FIDA, les investissements issus de la diaspora représentent actuellement plus de quatre fois ceux de l'aide publique au développement. Le programme du Fonds, qui est également soutenu par le gouvernement somalien et les États-Unis, propose des subventions allant de 20.000 à 100.000 dollars pour permettre à des Somaliens vivants hors de leur pays natal d'investir dans des infrastructures rurales en Somalie.

L'insécurité alimentaire est un problème majeur en Somalie. En juillet 2011, une crise alimentaire de six mois, causée par la sècheresse et assortie d'une flambée des prix des denrées alimentaires, a entraîné la mort de plusieurs milliers de personnes.

Si le nombre de Somaliens touchés a été réduit de moitié au cours des six derniers mois, le Coordinateur humanitaire par intérim de l'ONU en Somalie, Stefano Poretti, a prévenu que la situation demeurait fragile et que la pluviométrie prévue pour la période allant d'avril à juin serait inférieure à la normale.

Le Programme de la FIDA a été lancé suite à l'appel du Président somalien, Hassan Sheikh Mohamud, à ses concitoyens de la diaspora afin de soutenir l'effort de reconstruction du pays. Les envois de fonds de cette diaspora représentent près de 50% du PIB du pays et sont indispensables pour son économie.

source

IFAD encourages the Somali diaspora to invest in rural areas to enhance food security

The International Fund for Agriculture and Development (IFAD) announced Monday the launch of a new program to encourage the Somali diaspora to invest in the agricultural sector of the country of origin to promote job creation in rural areas.

IFAD will provide a fund of $ 1.5 million to fund innovative projects designed by members of the diaspora. One million more will be paid by investors in the Diaspora during the first four years of the program.

"We need to mobilize investment in the agricultural sector, particularly in countries emerging from conflict and fragile," said IFAD President, Kanayo F. Nwanze.
"By helping the diaspora to invest in agriculture, we create opportunities for new resources to achieve our common goal."

According to IFAD, investments from the diaspora are currently more than four times those of the ODA. Fund program, which is also supported by the Somali government and the United States, offers grants ranging from 20,000 to 100,000 dollars to allow Somalis living outside their home countries to invest in rural infrastructure in Somalia.

Food insecurity is a major problem in Somalia. In July 2011, a six-month food crisis caused by drought and accompanied by a surge in food prices has caused the death of several thousand people.

If the number of Somalis affected has been halved over the last six months, acting Humanitarian Coordinator of the UN in Somalia, Stefano Poretti, warned that the situation remained fragile and expected rainfall for the period of April to June is less than normal.

The IFAD Programme was launched following the call of the President of Somalia, Sheikh Hassan Mohamud, his countrymen in the Diaspora to support the reconstruction of the country. Remittances from the diaspora represent nearly 50% of GDP and are essential to its economy.

[rooble]

^Great initiative. Boosting the rural economy is a key to our recovery.