There is no response to this as you fail to grasp economic principles. If we built 1000 factories today in Somaliland, it is pointless as all their money will go to khat chewing which has no benefit to the wider economy, it won't create other jobs as a knock on effect, it's essentially a dead investment.
What economical principles are you even talking about? You are throwing around all kinds nonsense together as an answer which lacks any form of substance.I honestly feel embarrassment when I read your repetitive nonsense.
Khat is but one of many different sectors.Almost 30% of our GDP is derived from the livestock industry followed by 20% from wholesale and retail trade (including the informal sector), 8% from crops and 6% from real estate activities.You keep putting emphasis on a moot point.
Khat isn't as prevalent as you think.As proven by how more investments came in the last two years and all of them were in sectors such as logistics, fisheries, agriculture and infrastructure.
The other businesses who want to come will just say what's the point as all the money these drug addicts have goes to khat anyways, it won't go to any new business sector, hence it's not an investors paradise because the human development index is shockingly low and it's due to the high rates of drug addiction. Investment requires high human development to exist there and that means your time is assessed to compare what you do in a day and what you produce and if all you do is say work all day and then re-invest that into khat, no other possible sector will flourish as their will be no demand at all as all the money goes to drugs and not spread out through the economy.
Businesses come to Somaliland because we aren't corrupt.Our transparency managed to attract international companies such as Coca Cola and DP World.These companies took a risk investing in Somaliland because they expect high returns on their investments.Somaliland is the way to access the east African market.With Ethiopia slowly becoming a manufacturing power and us being their primary port to import and export,it seems like the investments will just keep coming in much needed sectors that lacked the funds to fully develop.
Again,add sources to your outlandish claims.Can you show me data that suggests all the investments in our economy go to khat? Ofcourse you can't.No economy functions that way.
I am not sure why you don't understand this? Collecting taxes and budgets of govt are supposed to be slim not high, you don't want to overburden your non-existing private sector any further by introducing high taxes on top of high energy costs and a low human capital pool who are drugged out. So on top of your already terrible environment on the ground you got bad govt policies on top of that not to mention the lack of legal framework that is reliable and not corruptible and no insurance on assets and unstable govt who can change with a small payment and kick investors out. The environment is simply not THERE for investment, the only people who invest are somali and it's due to CLAN PRIDE or people who have Isaaq wives.
What is your point? I didn't ask whether Puntland should collect high tax or not.What I asked was why don't you collect any at all? A goverment needs the revenue raised from taxation to invest in development,fight poverty and provide public services in social and physical infrastructures needed to improve long term growth.How can Puntland achieve anything if they can't do the simple act of collecting tax?
Somalilands tax system is one in which company tax,capital gains tax, branch profits tax,value added tax,employment tax,local taxes,vehicle road tax,land rates rental income tax and single business permit all contribute towards the goverments funds.Its how we manage to pay our soldiers and civil servants on time each month.How we provide basic social services.Don't look down on taxation's impact on goverment funds.
If you want to learn the % of each tax collected in Somaliland check this out,maybe Puntland will learn a thing or two:
https://www.pkf.com/publications/tax-guides/somaliland-tax-guide/
Most foreigners operate in Mog or Bosaso as we have plenty of arabs, bengalis, pakis, opening up businesses in Bosaso and it's the same for Mog especially turkish. Just get outta of here sxb, your people can't even clean their streets as volunteers to show some indications their not just welfare collectors from the diaspora remittance and drug addicts.
Mogadishu attracts a lot of illegal businesses and investors.Its a place were unsavoury characters such as warlords and al shabab make deals with foreigners looking to exploit them.Business is indeed flourishing xamar,but you have to ask yourself,who is really benefitting from it? It sure as hell isn't the local population since 400k of them starved to dead in the last 8 years.
No one in their right mind invests in Puntland(Bosaso) expecting any turns since the pirating industry died.That place is dusty and barren now.Also the second biggest project to be implemented in Puntland in the past 25 years and reported to cost 6 million,sponsored by the EU through Germany based organisation,GIZ
was littered with corruption.
2016 source:
https://www.garoweonline.com/en/new...s-eu-funded-road-project-marred-by-corruption
Who in their right mind would invest in such a huge project again from a goverment that is untrustworthy and volatile? That is why you got that Italian mafia guy from P&O Heritage instead of DP World.
Somaliland will never boom, I tell you that and mark the DR words carefully because I don't say shit for nothing.
You said nothing but shit in every one of your posts.Your sentences had no structure nor proper grammar.It was like I was deciphering some alien language when reading what you wrote.You dance around questions asked and use one to many straw man arguments.You don't provide any evidence nor sources to your outlandish nonsense claims either.
Anyways,with the DP World port and military base deal done and monopolizing a huge share of Ethiopia's exports and imports,the future of Somaliland is a bright one.We will become the Dubai of the horn in a decade or 2.Mark my words or the words of any expert that claim SL will be the way to acces the east African market if they play their cards right.Which we will as the most democratic and business friendly(no corruption) country in the horn.