MOGADISHU | Istanbul Bazaar | 2013 | U/C
An Ottoman-style market (Bedesten) in Somalia
Economic vibrancy in Africa is not limited to investments for production and manufacturing. Turkish businessmen rely on different projects to revive the overall economy in the continent. One such project is the construction of a trade center that Mustafa Erkan, a businessman from İstanbul is in the middle of preparing in Mogadishu, the capital of Somalia. The facility, which will be named the İstanbul Bazaar, will host wholesalers of furniture, carpet and dry foods. The bazaar, also known as a bedesten, will likely make a $500 million contribution to Turkish exports every year.
Noting that they have been doing business in South Africa for many years, Erkan says they are familiar with the continent. Erkan, recalling that Somalia is one of the best places to do business, stresses that the sources are scarce in the country and that it is not possible to find most products. Erkan further said: “It is almost as though there is no toothpick or needle in this country. This is also the case for the construction industry. The cement factory is idle. Iron is brought from other countries. The products imported from China are of low quality. In addition, the goods imported from Dubai are expensive.” Security is the greatest problem in Somalia. For this reason, the investors are hesitant to start business in the country. The İstanbul Bazaar offers a reliable and secure environment for investors.
Noting that the Bazaar will serve the interests of both Somali and Turkish businessmen, Erkan says: “No VAT tax is levied on our products in places like Mogadishu. There isn’t a significant amount of transport cost because we are wholesalers. The profit margin is not so big. But because we are not retailers, we will not have to deal with the complaints by the local people.”
So far, $15 million have been invested in the İstanbul Bazaar. In addition to contributing to the development of the Somali economy, the bazaar, which will open its doors in 2013, will also improve the overall employment in the country. Erkam Meriç who was assigned as general manager of the bazaar says that they will follow the traditional code of business inherited from the Ottoman times and they would like to revive the ethical code of the time.
Details about the second phase will be announced after the construction of the first phase of the bazaar. Erkan says that further details can be obtained at www.istafbazaar.com
The bazaar, also known as a bedesten, will likely make a $500 million contribution to Turkish exports every year.
:lol:The part quoted below is an interesting middle-finger to all the multi-million $ Somali companies getting rich in the Ugandan, Kenyan, Tanzanian, Rwandan, etc economies, while ignoring their own virgin market that's about to boom. The young Turkish companies will get the early bird, may the realization of this fact burn deeply in the heart of every Somali entrepreneur lol, that should get them fired up:
Come on bro, this is just one Turkish business project, out of a dozen infrastructural ones. This is no threat to a revived Somali economy that could easily grow at double digit speed. For two decades the Somali companies getting fat in the Kenyan, Tanzanian, Ugandan, Rwandan and UAE economies had a chance to establish an equivalance of this bazaar in Somalia, but opted to establish their businesses overseas, which is why Somalis after the Iranians are the largest re-exporters of goods in Dubai.Somalia needs to have good economic laws and structure, before dealing with the outside world on big projects. I think it's a shame that Somalia is heading too fast, without looking at the details.
Don't take any numbers in Somalia seriously. Also, welcome to the forum."will likely make a $500 million contribution to Turkish exports every year"
Somalia's GDP is little over 6 billion dollars. So, almost 10% of the whole economy is going to go through this building.
In other words, the writer thinks everybody in the country will spend almost 10% of their income right in this building, or 10% of the population will spend all of their income in this building, or something in between the two.
Isn't it beautiful when people just make up numbers? I wish I had an investment that returned 500 million annuity over "15 million" investment.
I couldn't have said better bro,masha Allah you are very bright sxb Somalia needs people like youCome on bro, this is just one Turkish business project, out of a dozen infrastructural ones. This is no threat to a revived Somali economy that could easily grow at double digit speed. For two decades the Somali companies getting fat in the Kenyan, Tanzanian, Ugandan, Rwandan and UAE economies had a chance to establish an equivalance of this bazaar in Somalia, but opted to establish their businesses overseas, which is why Somalis after the Iranians are the largest re-exporters of goods in Dubai.
I don't believe in strict protectionism, it will make the locals lazy and uncompetitive. This is one of our positive business characteristics; our competitive streak, it's Somali traders bringing the heat to business groups like the Chinese, Lebanese or the Indians all across Africa, are you telling me we can't do the same on our hometurf?
Their is no significant imbalance between our exports and imports, unless you take the static decades old data by the likes of IMF or the CIA World Factbook as a reference for Somali economics. The real problem is the dormant industries that need to be revived pronto, such as the fruit and vegetable plantations of the South that were the biggest employers in East Africa in the prewar period. The real problem is the underutilization of our rich resources, be it oil, gold, gemstones, uranium, aquaculture, etc found all over the country.
All of these would offset whatever Chinese, Turkish, American wholesaler, trader or company could bring to the markets. However, we should not discourage the latter from doing business in our country, their presence will keep the Somali traders and businesses on edge in a healthy way and keep the economy competitive.
The only sectors that need to be protected by the goverment are the agricultural sector and the resources-sector. The first has the potential to make us self-sufficient again like in the past, and with surplus exported to the Middle-East, Asia and Europe, hence no major land sales of any kind to a foreign company or country. The second is a well known major revenue maker that could transform Somalia within in a decade and that shouldn't be taken lightly, so I support resource-nationalism.
Entrepreneurialism however should not be protected, if we end up importing everything from clothing to electronics then the fault lies with us, and only us for not creating similar companies, now we have atleast the civil-strife as an excuse, but if in ten years time the situation is the same, then eggs on our faces! There is no need for high-tariffs and scaremongering, Somalis will buy anything from another Somali for the simple fact that the company or shop is a Somali one, so they already have the consumers on their side, giving them a major adventage over the foreign traders and companies bringing their goods.
If Somalis can establish thousands of successful businesses in a competitive capitalistic environment like the West, serving a loyal Somali clientele, logic dictates that they should be capable of doing the same at home at a far greater rate of success.
Population numbers especially. According to the respective governments; there are 3.5 million people in Somaliland and 2.4 million in Puntland :lol:.Don't take any numbers in Somalia seriously. Also, welcome to the forum.