Doing business in Somalia - Anyone with experience

[Michael Blackson]

I'll start off by saying who i am. I'm a guy in his late 20s who's grown up in Scandinavia. I haven't been to Somalia since we left at the age of two. My Somali is fluent.

I'm planning on starting some sort of export business in Somalia, this is not about the business itself so let's assume I have a good idea and enough capital. The question is regarding the ease of making business in Somalia.

• How much do you need clansmen/family vouching for you?
  
  
• Would being in an area where your clan is a minority be a problem?
  
  
• How much do you have to pay in bribes and other 'unofficial' costs?
  
  
• Can you employ a random dude and expect them to not rip you off?
  
  
• What's the general sense of contract compliance between businesses?

 

[Pla]

sad reality is, do it where your clan dominates

 

[Michael Blackson]

sad reality is, do it where your clan dominates

Even in this post-qabil farmaajo era?

 

[Haji]

Even in this post-qabil farmaajo era?

Whenever you go anywhere in somalia/somaliland its the first question they ask.

They're suspicious, especially if they haven't seen you before, because everyone knows everyone there.

 

[Deactivated]

Start with your Gobol.

And connect with others in the same industry as you across gobols since you share the same challenges and could build partnerships together.

 

[Michael Blackson]

Whenever you go anywhere in somalia/somaliland its the first question they ask.

They're suspicious, especially if they haven't seen you before, because everyone knows everyone there.

That's a pitty and something that will hinder many business connections. As if developing from the bottom wasn't hard enough.

 

[Haji]

That's a pitty and something that will hinder many business connections. As if developing from the bottom wasn't hard enough.

Don't let it deter you though, if you have a somali friend in scandinavia that has the town's qabil then you can do it.

For example, I am Isaaq. I have a close friend who is raxanweyne, and his family has a lot of connections and family in Baidoa.

I could easily start any business in baidoa, with their support and involvement. But I couldn't go there alone. It's like that.

If you want it badly enough, you can do it.

Which areas are you interested in by the way?

 

[Michael Blackson]

Start with your Gobol.

And connect with others in the same industry as you across gobols since you share the same challenges and could build partnerships together.

It seems to be the consensus to stay in your gobol and it's a shame since many businesse are geography dependent such as agriculture fishing etc.

 

[Michael Blackson]

Don't let it deter you though, if you have a somali friend in scandinavia that has the town's qabil then you can do it.

For example, I am Isaaq. I have a close friend who is raxanweyne, and his family has a lot of connections and family in Baidoa.

I could easily start any business in baidoa, with their support and involvement. But I couldn't go there alone. It's like that.

If you want it badly enough, you can do it.

Which areas are you interested in by the way?

It won't deter me, I'll try to make it happen but it's good to know all the obstacles before you start.

I'm interested in sesame exports which mainly grows in the Jubbaland region and exported from Mogadishu and Kismayo ports. 'My gobol' would be the Bari region but I guess there's a lot of MJs living and doing business in southern Somalia. I don't have any family connections in the region either.

 

[BestCaseScenario]

It seems to be the consensus to stay in your gobol and it's a shame since many businesse are geography dependent such as agriculture fishing etc.

Muqdisho and Kismayo. Find Somali friends who hail from these two cities with connections. You are set to start.

From these two cities, you can travel to farm lands and Fish is just a stone throw away.

 

[BestCaseScenario]

These two cities are not as tribal btw. Many Somalis do business in them and they come from all corners of Somalia. Typical of bigger towns. Hargasya is the same. But I am not sure fishing and farming opportunities there lol.

 

[Michael Blackson]

These two cities are not as tribal btw. Many Somalis do business in them and they come from all corners of Somalia. Typical of bigger towns. Hargasya is the same. But I am not sure fishing and farming opportunities there lol.

Yeah I'm sue it's more mixed in these cities but are you speaking from experience when you say it's less tribal? And do you still need a local guy vouching for you?

 

[BestCaseScenario]

Here is a good document by IOM that details opportunities for work, youth migration to some three Somali towns including Muqdisho. May be a good start to read to get an idea for your future projects.


https://www.iom.int/sites/default/files/country/docs/IOM-Youth-Employment-Migration-9Feb2016.pdf



I would say big cities are your best chance. People in big cities usually don't care about clan too much. That goes for every Somali town with big markets. They are open for business and all Somalis travel within the country. Those who can not travel maintain contacts in other Somali cities for their business. It all works out. There is no doom and Gloom.

Don't be dissuaded by some of the negative comments posted on here by ill mannered and ill raised adults who should be taking their meds.

 

[BestCaseScenario]

Yeah I'm sue it's more mixed in these cities but are you speaking from experience when you say it's less tribal? And do you still need a local guy vouching for you?

Yes, it is less tribal in big cities. The politics of the city may be dominated by one or two clans, but average Somali in town doesn't care about who you are clan wise.

Muqdisho is home to all Somalis. Kismayo seconds that and Hargaysa is Third.

 

[Haji]

Yeah I'm sue it's more mixed in these cities but are you speaking from experience when you say it's less tribal? And do you still need a local guy vouching for you?

Since you were raised in Scandinavia, you definitely need someone to go with you anywhere in somalia, especially if it's your first time.

Your parents probably know someone from xamar or kismayo most likely.

 

[BestCaseScenario]

Since you were raised in Scandinavia, you definitely need someone to go with you anywhere in somalia, especially if it's your first time.

Your parents probably know someone from xamar or kismayo most likely.

That is a must. This is true for anyone including Somalis who haven't gone back for years. They need to know someone there already.

 

[BestCaseScenario]

Here also is another good source for where is best for farming based on rain expectations and good farming land. Surprisingly, Hargaysa vicinity is included.


Somalia Livelihoods Zones


Two areas are considered high potential for crop production

with rainfall ranging from 400mm to 600mm: a small area in

the Northwest (west of Hargeisa) and a much larger interriverine

area between the Shabelle and Juba river valleys.

There are four primary agricultural zones in Somalia:

• Northwest in parts of Awdal and W. Galbeed -


rainfed maize and sorghum with some livestock

herdings

• Coastal Cowpea Belt Zone in Central and Southern


Somalia

• Shabelle and Juba Riverine Valleys - rain fed and


irrigated maize, with sesame cash crops

• Sorghum Belt in Bay and Bakool Region - rainfed


sorghum with livestock production.

Here is the foa document put together by them. Good luck saxib

http://www.fao.org/3/a-as787e.pdf

 

[Michael Blackson]

@Haji @BestCaseScenario

Good to know that clan thing won't be too big of an issue in the big cities but you still need some locals vouching for you. I guess things have to move a little slower than expected and I might start with going just familiarize with local actors.

Any commetns on general trustworthiness? I guess you can't contract out certain operations as easily as in say Sweden

 

[BestCaseScenario]

@Haji @BestCaseScenario

Good to know that clan thing won't be too big of an issue in the big cities but you still need some locals vouching for you. I guess things have to move a little slower than expected and I might start with going just familiarize with local actors.

Any commetns on general trustworthiness? I guess you can't contract out certain operations as easily as in say Sweden

You can count on Somalis brother when you get to know them. Specially THE BUSINESS COMMUNITY IS SOLID. You can trust pretty much anyone you get to know from them because their success depends on trust. Somalis were saved by trusting each other when institutions collapsed totally. Money sent from America reaches the Nomad tending to his goats in 24 hours nowadays and you get a text message notifying you they got the money. Somalis are good with trust. And when I say Somalis, I don't mean western Somalis. Most of them Are useless. You can see that on here.

 

[Deactivated]

It won't deter me, I'll try to make it happen but it's good to know all the obstacles before you start.

I'm interested in sesame exports which mainly grows in the Jubbaland region and exported from Mogadishu and Kismayo ports. 'My gobol' would be the Bari region but I guess there's a lot of MJs living and doing business in southern Somalia. I don't have any family connections in the region either.

I’m originally from Kismaayo and have many family members still living there.

You don’t need anyone to vouche for you when you do business in Somalia. The deeper your pockets the easier it becomes to create partnerships with other entrepreneurs.

I have many non Puntlander connections in Somalia and many people are looking to connect with other gobolists because it’s a win-win for both parties especially when you can welcome the other person into your Gobol.

If your capital is limited then it’s easier to start in your Gobol because it reduces risk since Somalia has no insurance or contract litigation to protect businesses.

If you’re interested in sesame, the crop can grow anywhere in Somalia, since it’s a drought resistant crop.

Pick a niche you like and find other gobolists who share the same passion as you. Going to Somalia alone is a major shit show, you need investors to help midigate risk and help you operate the business when you build a operations system that can work on its own.