Idilinaa
VIP
Ethiopia raising minimum civil servant salary from $35 to $44 per month
- Thread starter Neptune
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I think its more that we heavily underestimate the economic power Somalis have becuase of how much our govts lack of services distorts things.
You have to rember that somalis are heavily present in Kenya and south Africa 2 of the largest African economies. And that nairbio which is the 11 largest but 6th richest city has been massively impacted in recent years by somali investment.
The fact we have such a large impact on the largest economies in Africa logically wouldn't make sense if our economic power was as small as it was on paper
ZBR
سبحان اللهِ وبحمدِه Free Palestine
Idk bro Allah knows best
Idilinaa
VIP
Exactly. You also forgot to mention Dubai/UAE. Somalis were the second biggest exporters/importers out of the ports, have a presence in real estate, finance, electronics, and other businesses, and have a large presence in the gold markets.
There, they even run multi-national corporations like MSG Group, which funnel money back into Somalia and fund development. They even hold subsidiaries in Somalia/Somaliland/Djibouti
Another example is SomGulf Real Estate. They have since moved their headquarters to Hargeisa, but they built a number of high-rise buildings in Gulf countries worth hundreds of millions.
I think a lot of businesses may have returned to Somalia/Somaliland in the past decade or so. It would be interesting to look into this further.
It’s the same in Kenya and South Africa, that you mentioned among others many hundreds of millions/billions in investments and capital generated abroad find their way back to Somalia, sometimes even through Somalis operating dual businesses, one in their home country and one abroad.
The community/private sector has a lot of wealth in Somalia; it’s the government that is poor in comparison. This is supported by the government’s own published stats, whilst it's most definitely an under-reporting of household consumption but it still shows the reality
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You know now that I think about it i remember hearing about a distant clan relative guy who owned multiple factories in somalia but had his headquarters in Dubai. It seems like this really was the common strategy for a lot of buisnessman. Although now its all changing as the country gets better and the uae decided to basically kicked out the somali buisness community after the farmajo incident
Idilinaa
VIP
They probably also do this to navigate international barriers, such as certifications and credibility requirements.
Take, for example, the Somali-owned company NeoBotanika, founded in 2014 by a diaspora returnee in Somaliland. The company not only exports frankincense and myrrh but also operates a distillation unit that employs locals, producing essential oils from these resins.
To sell distilled products internationally, a company must have accredited labs and certification infrastructure within Somaliland or Puntland which is a process that is both costly and time-consuming. Buyers require GC-MS (Gas Chromatography-Mass Spectrometry) profiles for every batch of oil, making this a major bottleneck for producers.
Dr. Moktar Osman Guelleh addressed this challenge by acquiring certification through partnerships with UK entities and registering the company in the UK. This strategy guarantees international credibility while allowing production to continue in Somaliland.
This approach is similar to other Somali businessmen who moved their headquarters abroad during the civil war and later returned to set up operations in Somalia or Somaliland. Another example is the Omaar Group, now called Ominco Group.
Founded in 1975 in Somalia, Ominco began as a trading company and expanded into a large multinational conglomerate operating across multiple sectors
Our Businesses – Ominco Group LTD
ominco.com
Going back to what we talked about earlier it shows that if Somalis can have such an outsized business presence abroad and shape economies across the Middle East and Africa, the same logic applies domestically. The reality is that a huge amount of business activity takes place inside Somalia, but most people remain unaware of it. Factories, water systems, energy and other infrastructure projects are financed by Somali business people themselves often at the multi million dollar scale.
The diaspora functions more like foreign investors: alongside exports, they inject capital into the economy and invest across every sector. This has reshaped Somalia’s trade patterns to be more regional and independent.
Remember when i fed Chat a few months back a couple of papers and articles on Somali trade and finance to organize the information how it fits into the larger African landscape:
As you know, I’ve since learned even more on the domestic side, how local businesses and communities finance development directly, how they pool resources through cooperative models, and how commercial banks and microfinance institutions drive growth. There’s also far more domestic production than outsiders realize, and when factoring in income reports and living costs, Somalia’s true per capita earnings likely sit closer to $4,000.
So in reality, diaspora capital and domestic financing work as dual engines of growth.
This will all become more apparent to people real soon. I will play my role in communicating it but i believe all the public-private partnerships where the government leverages the wealth in the private sector for development will reshape Somalia. The problem until recently is that private sector expanded rapidly so local governments was unable to keep up with it but now they are increasingly tapping into that wealth that has accumulated over the decades and expanding their tax base as well through implementions.
Already 70% of all development projects in Puntland was self funded, donor funding or federal grants makes up 30%, self-funding is likely higher for Somaliland. This is not accounting most of the private sector funded projects just through taxation, with greater revenue at their disposal imagine how much more they can do. So 2025-2029 is going to be very transformative , people will have a hard time time hanging on to these false pre-conceptions of Somalis or Somalia. It will be an interesting sight to behold.
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10,000 Shillings is $18 USD. That’s at least $350 a month, Ethiopia can’t be that gaajo..
There is a lot of Kenyan teachers in Hargeisa, their salaries must be really competitive for them to come.
Idilinaa
VIP
350 a month is 4000 a year. It was no hyperbole when i said they could earn doing menial jobs in a single day in Somalia what they would earn in Ethiopia for a whole month.
They earn 15 dollars a month in 2018 and the minimum wage for the average Ethiopian workers is at 26$ dollars a month in 2020
The living wage is 144 dollars , meaning that's how much you need to earn to pay for living expenses.
The cost of decent standard of living for a whole family is higher at 238 USD
It really is gaajo or struggle because they can't earn enough to support living.
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Yep and things have gotten worse with moving away from a fixed exchange rate, their imports were cheap previously and now it’s adjusting to the actual market value although I think this will be beneficial in the long term.
When is this? Cuase somali shilling isn't used in bosaso anymore
Idilinaa
VIP
Lmaao Lebanon out of the bunch is mentioned as an example. Lebanon’s government basically ran what was a Ponzi scheme with its banking system, using new inflows to cover old obligations until it collapsed. It actually reminds me a lot of Albania’s economic breakdown in the 1990s, when pyramid schemes wiped out savings and triggered a nationwide crisis
It actually shows you the advantages Somalia has since it has steady inflows of diaspora capital acting like a natural reserve, less dependency on outside loans because communities finance housing and businesses themselves, a built-in cushion when crises like drought or inflation hit, and flexibility through trade and local pooling of resources instead of depending heavily on IMF bailouts or foreign creditors.
All of this works like a safety net that keeps Somalia from falling into the debt and currency crises seen in countries with rigid exchange rate systems.
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Mid 2010s I think
Idilinaa
VIP
@Shimbiris @novanova @Barkhadle1520 @Neptune @Zak12
Had to quickly come back and share this with you all. I found another major Somali business conglomerate that really puts things into perspective.
Their headquarters is in Mogadishu, they have multiple branch offices across various towns, and even an international office in the UAE.
What’s fascinating is how some of these conglomerates start as trading companies focused on import/export and logistics, then diversify into multiple sectors and reinvest in local manufacturing. For example, this group manufactures furniture and mattresses in Somalia.
I guess I was right , they use the UAE to bypass trade restrictions and credibility issues that Somalia faces, and from there they move products directly.
It really looks like Somalia’s main export markets are East African countries and the UAE/Turkey, with the UAE acting as the main funnel. Goods produced in Somalia livestock, agriculture, fish, manufactured items often go first to Dubai. From there, they’re re-exported globally under UAE paperwork. On paper, this makes Somalia’s exports look smaller, because they show up in UAE trade statistics instead of Somalia’s.
The same distortion happens with imports. Many Somali businesses set up headquarters or hubs abroad, run factories there, and then export products back into Somalia. It shows up as “imports,” but most of the profits flow back to Somali owners.
Take tuna as an example. OMAAR Tuna (which recently set up a tuna plant in Somalia), Jazeera Tuna, and likely Qandala Tuna all source fish locally, package it abroad, and sell it back into Somalia’s market while also exporting internationally. So in trade stats it looks like Somalia is “importing canned tuna,” but in reality Somalis are selling their own tuna back to themselves while also selling it to other markets. The value chain and profits still go back to Somalia. They employ local Somali fishermen, processers
And this distortion in exports is bigger than just tuna. A lot of Somali goods are funneled through Dubai, Nairobi, or Turkey before reaching global markets. That’s why they don’t show up neatly as “Somalia’s exports,” even though the business activity and profits connect back home. Now with local factories like SomTuna, Habo, and Bareeda operational inside Somalia, more of the processing is happening locally. But since much of their output still gets re-exported through hubs like Dubai, the same trade distortion continues it doesn’t always show up cleanly as “Somali exports,” even though the value and profits are Somali.
It makes a lot of sense, actually. I remember @Shimbiris saying how he grew up eating Somali canned and processed food in the UAE. At the time it sounded interesting, but now it really clicks.
It also makes sense how local fishermen can earn $1,500–$3,000 a month. Their catch moves through a value chain: first sold to local processors, then to manufacturers/packagers, then to distributors, then to retailers, and finally to consumers. The same thing happens with banana farmers, who can earn around $18,000 a year (as that study showed). The key is that the longer and stronger the value chain, the bigger the income opportunities it creates. And since much of that chain is controlled by Somali businesses, the profits largely stay within Somali hands and cycle back into the economy.
The same goes for Frankincense. Many Somali-owned businesses distill it into various products abroad to bypass accreditation, certification, and lab setup bottlenecks. They then package, brand, and sell it to different markets. For example:
They sell it even at the BBS mall in Eastleigh:
Dhulkii Lubaanta
Discover rare and precious resins, each with a storied past and remarkable natural benefits. Our collection stands as a testament to the healing and restorative powers of these ancient remedies.
bbsmallnairobi.com
Another company I found on LinkedIn appears to be part of multiple businesses owned by descendants of the Majerteen royal family, who collectively inherited and manage the frankincense trees.
It actually surprised me how many Somali owned companies are distilling abroad in the UK/West or UAE while being registered both there and in Somalia. This is ironic considering the misleading narratives online about exploitation. While that may have been true over a decade ago, today Frankincense harvesters are likely earning a decent income from a value chain they effectively control. Meanwhile, the Somali owned companies probably generate profits in the millions, and diaspora entrepreneurs have even built sustainability mechanisms to manage operations.
As far as I know, Botanika is the only company that has successfully bypassed barriers to central distilling locally. However, this setup distorts Somalia’s trade/export statistics because the value and profit return is much higher than what official figures suggest.
I suspect a similar dynamic exists with gold. Somali trading companies headquartered abroad often purchase gold and then resell it to Somali businesses or retailers, who in turn sell to wealthy customers or distribute it globally. In effect, Somalis act as their own middlemen in their own trade.
For example, this one company has offices in both the UAE and Somaliland located in Hargeisa’s Burj Omar Business District and the Gold Souq, where Somali shops operate. According to their website, they manage billions in assets owned by 50,000 Somali investors, who receive monthly returns. They fund gold mining and processing operations in Somaliland and maintain a transparent supply chain that complies with Islamic finance rules and certifications:
Idilinaa
VIP
In one of Somaliland industrial survey on various factories in the country, they actually point this out that some of these companies cater to foreign markets but their exports are indirect.
Let me show you an example
It's not just UAE, thats just the import hub that use to re-export it globally, some of these business men set up factories abroad and start packaging Tuna they import from Somalia that fishermen sell to local processors who then sell it Somali export companies before it reaches Somali manufacturers/processors abroad.
I remember a few years ago Somalis thought Thailand Manufacturers were stealing Somali fish and branding it to later resell it, but looking back now it was actually local Somali business men doing this lmaao
Waa kee waddanka "qaatay" magacii warshadda kalluunka ee Laasqoray? - BBC News Somali
Howshii warshadda Kalluunka Laasqoray ayaa in muddo ahba hakad ku jirtay
www.bbc.com
These same local business men contribute to local income generation and job creation for Somali fisheries unironically.
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Wow in my head i just had an idea of somali companies active in east africa possibly setting new branches in somalia with their experience or of companies using places like the UAE as an initial springboard decades ago .@Shimbiris @novanova @Barkhadle1520 @Neptune @Zak12
Had to quickly come back and share this with you all. I found another major Somali business conglomerate that really puts things into perspective.
Their headquarters is in Mogadishu, they have multiple branch offices across various towns, and even an international office in the UAE.
View attachment 372532
What’s fascinating is how some of these conglomerates start as trading companies focused on import/export and logistics, then diversify into multiple sectors and reinvest in local manufacturing. For example, this group manufactures furniture and mattresses in Somalia.
View attachment 372530
View attachment 372533
I guess I was right , they use the UAE to bypass trade restrictions and credibility issues that Somalia faces, and from there they move products directly.
It really looks like Somalia’s main export markets are East African countries and the UAE/Turkey, with the UAE acting as the main funnel. Goods produced in Somalia livestock, agriculture, fish, manufactured items often go first to Dubai. From there, they’re re-exported globally under UAE paperwork. On paper, this makes Somalia’s exports look smaller, because they show up in UAE trade statistics instead of Somalia’s.
The same distortion happens with imports. Many Somali businesses set up headquarters or hubs abroad, run factories there, and then export products back into Somalia. It shows up as “imports,” but most of the profits flow back to Somali owners.
Take tuna as an example. OMAAR Tuna (which recently set up a tuna plant in Somalia), Jazeera Tuna, and likely Qandala Tuna all source fish locally, package it abroad, and sell it back into Somalia’s market while also exporting internationally. So in trade stats it looks like Somalia is “importing canned tuna,” but in reality Somalis are selling their own tuna back to themselves while also selling it to other markets. The value chain and profits still go back to Somalia. They employ local Somali fishermen, processers
And this distortion in exports is bigger than just tuna. A lot of Somali goods are funneled through Dubai, Nairobi, or Turkey before reaching global markets. That’s why they don’t show up neatly as “Somalia’s exports,” even though the business activity and profits connect back home. Now with local factories like SomTuna, Habo, and Bareeda operational inside Somalia, more of the processing is happening locally. But since much of their output still gets re-exported through hubs like Dubai, the same trade distortion continues it doesn’t always show up cleanly as “Somali exports,” even though the value and profits are Somali.
It makes a lot of sense, actually. I remember @Shimbiris saying how he grew up eating Somali canned and processed food in the UAE. At the time it sounded interesting, but now it really clicks.
It also makes sense how local fishermen can earn $1,500–$3,000 a month. Their catch moves through a value chain: first sold to local processors, then to manufacturers/packagers, then to distributors, then to retailers, and finally to consumers. The same thing happens with banana farmers, who can earn around $18,000 a year (as that study showed). The key is that the longer and stronger the value chain, the bigger the income opportunities it creates. And since much of that chain is controlled by Somali businesses, the profits largely stay within Somali hands and cycle back into the economy.
The same goes for Frankincense. Many Somali-owned businesses distill it into various products abroad to bypass accreditation, certification, and lab setup bottlenecks. They then package, brand, and sell it to different markets. For example:
View attachment 372535
View attachment 372536
They sell it even at the BBS mall in Eastleigh:
Dhulkii Lubaanta
Discover rare and precious resins, each with a storied past and remarkable natural benefits. Our collection stands as a testament to the healing and restorative powers of these ancient remedies.
Another company I found on LinkedIn appears to be part of multiple businesses owned by descendants of the Majerteen royal family, who collectively inherited and manage the frankincense trees.
View attachment 372537
It actually surprised me how many Somali owned companies are distilling abroad in the UK/West or UAE while being registered both there and in Somalia. This is ironic considering the misleading narratives online about exploitation. While that may have been true over a decade ago, today Frankincense harvesters are likely earning a decent income from a value chain they effectively control. Meanwhile, the Somali owned companies probably generate profits in the millions, and diaspora entrepreneurs have even built sustainability mechanisms to manage operations.
As far as I know, Botanika is the only company that has successfully bypassed barriers to central distilling locally. However, this setup distorts Somalia’s trade/export statistics because the value and profit return is much higher than what official figures suggest.
I suspect a similar dynamic exists with gold. Somali trading companies headquartered abroad often purchase gold and then resell it to Somali businesses or retailers, who in turn sell to wealthy customers or distribute it globally. In effect, Somalis act as their own middlemen in their own trade.
For example, this one company has offices in both the UAE and Somaliland located in Hargeisa’s Burj Omar Business District and the Gold Souq, where Somali shops operate. According to their website, they manage billions in assets owned by 50,000 Somali investors, who receive monthly returns. They fund gold mining and processing operations in Somaliland and maintain a transparent supply chain that complies with Islamic finance rules and certifications:
View attachment 372538
But it looks like the scale of what we're talking about is dozens of times large than that. I have to say this level of strategic thinking and adaptability is a shock to me
In one of Somaliland industrial survey on various factories in the country, they actually point this out that some of these companies cater to foreign markets but their exports are indirect.
View attachment 372542
Let me show you an example
It's not just UAE, thats just the import hub that use to re-export it globally, some of these business men set up factories abroad and start packaging Tuna they import from Somalia that fishermen sell to local processors who then sell it Somali export companies before it reaches Somali manufacturers/processors abroad.
View attachment 372543
View attachment 372545
I remember a few years ago Somalis thought Thailand Manufacturers were stealing Somali fish and branding it to later resell it, but looking back now it was actually local Somali business men doing this lmaao
Waa kee waddanka "qaatay" magacii warshadda kalluunka ee Laasqoray? - BBC News Somali
Howshii warshadda Kalluunka Laasqoray ayaa in muddo ahba hakad ku jirtay
These same local business men contribute to local income generation and job creation for Somali fisheries unironically.
Wallahi this shit sounds so ridiculous. I cant count how many times ive seen somalia being so reliant on imports cites in reports on future development. But all this time it was just a bookkeeping error.
It makes me wonder how large are economy actually is. If these same companies are exporting to the rest of east africa then 30-40 billion dollar economy wouldn't be impossible
Idilinaa
VIP
The fact that these companies were exporting indicates they were operating with surplus production.
Wallahi this shit sounds so ridiculous. I cant count how many times ive seen somalia being so reliant on imports cites in reports on future development. But all this time it was just a bookkeeping error.
It makes me wonder how large are economy actually is. If these same companies are exporting to the rest of east africa then 30-40 billion dollar economy wouldn't be impossible
But the bigger question is how much revenue and profit actually flows back to Somalia.
They operate somewhat like multinational corporations but in reverse compared to much of the rest of Africa, where Western companies set up abroad and send profits back home. In this case, Somali-based companies are generating profits abroad and bringing them back to Somalia.
I never connected this until now how it distorts Somalia's trade on paper. It might also just be the reverse its Somali companies and business people in Somalia that set up parallel businesses in major trading hubs in East Africa/UAE etc to bypass the trading barriers, bottlenecks and reputation to reach global markets.
Because why would Somali business men in Bosaso and Mogadishu of all places operate business in Nairobi? When they already established themselves in Somalia? So it's quite literally strategic maneuvering on their part
What this implies is that large amounts of capital flows back into Somalia from abroad via these business connections and it's unaccounted for as well on paper.
Idilinaa
VIP
Also, another point, @Midas this company was founded in Somalia in 1982, just like Moumin, ADCO, Horseed, Al-Barakat (Hormuud), Dahabshil, Shabeel Group, MSG, and others they were all established in the 1980s. Omaar Group, however, was founded earlier, in 1974.Their headquarters is in Mogadishu, they have multiple branch offices across various towns, and even an international office in the UAE.
View attachment 372532
What’s fascinating is how some of these conglomerates start as trading companies focused on import/export and logistics, then diversify into multiple sectors and reinvest in local manufacturing. For example, this group manufactures furniture and mattresses in Somalia.
View attachment 372530
View attachment 372533
This growth is largely thanks to the nationalization and cooperative movement of the 1970s. It allowed Somalia’s economy to come under domestic control, breaking foreign monopolies that formed after the colonialists made laws barring Somalia from full economic particpation, and paved the way for Somali owned businesses to emerge across sectors in the 1980s.
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Idilinaa
VIP
They really do operate much like multi-national corporation.
This one operates factories in Mogadishu, sources agricultural products from Somalia but is headquartered in Dubai. Dubai is treated as a gateway into global markets.
Som Seed Agri – Specialists in Sesame
somseedagri.com
But look how many locations they exist in:
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