How Somalis can become less dependent on livestock exporting to Arab nations?

[𐒁𐒚𐒒𐒂𐒘𐒂𐒗 𐒎𐒚𐒗𐒗𐒒]

Somali livestock traders are literally wholly dependent on the Khaleejis and clearly this is disastrous for the economy and also for foreign policy.

Saudi Arabia
That sudden drop in demand has been devastating for Somalia, where livestock makes up three-quarters of total exports, around 70 percent of which are sent to Saudi Arabia in the months leading up to the hajj.

Clearly the best solution is to try to move away from just exporting livestock to what companies like Bosaso Tannery do. As you can read below, they have entered different international markets and are not reliant on Khaleeji Arabs.

A ten-year-old manufacturing, distributing, wholesale and import/export company, the Bosaso Tannery processes wet salted, dry salted, wet blue, limed, pickled, and air/frame dried sheep and goat hides and skin. It has some of the highest quality natural skins on the continent.[12][13] The firm exports a little over 90,000 tonnes of hides and skins every year from Bosaso to Ethiopia, Turkey, Pakistan, India, China and Italy.[12][14] Raw camel hides and sheep and goat skin are also dispatched to the United Arab Emirates.[15] The wet blue type is exported to the Middle East and various parts of Europe. As of 2012, the company is moving toward ready-made leather production for eventual exportation to consumer markets in the Middle East and other areas.[14]

So.. what other industries can Somali traders focus on?

How can Somali traders be less dependent on Khaleeji Arabs?

 

[𐒁𐒚𐒒𐒂𐒘𐒂𐒗 𐒎𐒚𐒗𐒗𐒒]

Look at this, the EU had to get involved to lobby for Arabs to lift the livestock ban. But I still don't see major efforts to diversify. If Arabs decide they don't want Somali livestock, the entire economy can become crippled. They don't even need us, they have Australia supplying them with meat.

EU supports efforts to lobby lifting Somali livestock export ban
Livestock is the main Somali export earner and Saudi Arabia is the largest market for Somali livestock. Communities in Somalia have suffered since the Gulf country imposed the ban on Somali livestock in December 2016.

EU supports efforts to lobby lifting Somali livestock export ban

EEAS - European External Action Service - European Union External Action

eeas.europa.eu

 

[BetterDaysAhead]

We need to strengthen our services and manufacturing sectors

 

[DR OSMAN]

@PuntiteQueen good topic sister, start contributing solutions then constant criticism without any solution which is like 91 civil war where they said oh siyad is bad and passed no solutions but a far worse scenario then siyad barre that is the problem with somali criticism it is not grounded in solutions they will criticise u but they won't ever show u what is better answer so it just leads to more or else another 91 in every industry kkkk.

Somali form of criticism is one that is totally destructive form of criticism since they never provide a solution to what their criticising and hence that's why I say the politic section needs cleaning up and separated on two 'sub forums' one that simply 'reports n criticises' and one that 'reports/criticises/provides solution'. The @Admin has still not accepted that most of the political section is purely rehashing 91 scenarios with their constant criticism but no solutions like rebels did criticising siyad but provided nothing in it's place. Which is identical to this section where there is lots of bashing but no solutions so the scenario is the same destruction

Hence their must be separate sub section for these 91 type of people

 

[DR OSMAN]

@PuntiteQueen in order to be rich it all depends on how we utilize our people to produce products/goods that are valuable in the market place and those require skills unfortunately, we do not want to continue this trajectory of unskilled economy because their products are the cheapest in the market and if u guide them towards this, their wealth will be no different to any other unskilled economy and living in poverty. Poverty is only destroyed by ensuring they 'produce' something that is valueable, we need a govt to ensure their time/labour goes into 'areas' of the market that have good returns not just globally but locally.

Banks horta is the first indicator of this where you provide the capital for their ventures and thus increase employment, but the govt direction is critical where it wants to use it's people time/labour by working out global market and local market for 'gaps' and then doing an analysis on investment required and skills needed and providing reports on what that industry can produce yearly. You can measure your products again gold or dollar is up to you, but u want to ensure it's expensive product so your share of gold or dollar increase per person

 

[𐒁𐒚𐒒𐒂𐒘𐒂𐒗 𐒎𐒚𐒗𐒗𐒒]

We need to strengthen our services and manufacturing sectors

Exactly, I wonder what the best ways to do this is, a lot of people cite security issues as a concern but a lot of businesses have been created and they are thriving.
Another issue people talk about is cost of electricity.

 

[𐒁𐒚𐒒𐒂𐒘𐒂𐒗 𐒎𐒚𐒗𐒗𐒒]

@PuntiteQueen in order to be rich it all depends on how we utilize our people to produce products/goods that are valuable in the market place and those require skills unfortunately, we do not want to continue this trajectory of unskilled economy because their products are the cheapest in the market and if u guide them towards this, their wealth will be no different to any other unskilled economy and living in poverty. Poverty is only destroyed by ensuring they 'produce' something that is valueable, we need a govt to ensure their time/labour goes into 'areas' of the market that have good returns not just globally but locally.

Banks horta is the first indicator of this where you provide the capital for their ventures and thus increase employment, but the govt direction is critical where it wants to use it's people time/labour by working out global market and local market for 'gaps' and then doing an analysis on investment required and skills needed and providing reports on what that industry can produce yearly. You can measure your products again gold or dollar is up to you, but u want to ensure it's expensive product so your share of gold or dollar increase per person

Dr Osman, thank you as always for your informative commentary. So you suggest the first sector that needs to be developed is the banking sector? How do we go about this, I am not an economist but I do know we have a lot of issues based on inflation, which currency to use etc.

 

[DR OSMAN]

Dr Osman, thank you as always for your informative commentary. So you suggest the first sector that needs to be developed is the banking sector? How do we go about this, I am not an economist but I do know we have a lot of issues based on inflation, which currency to use etc.

Technically sister there is two economic scenarios you never want.

1. Recession where the businesses produce too much and leads to no buyer and hence it starts to go to waste. This happens mainly when u have to many businesses doing the same thing, it leads to an over supply and hence gets cheaper and cheaper every business that joins. Somalis r notorious for this not knowing how it will lead to them selling cheaper then market rate which eventually sends them broke if they keep up this model. Govt intervention n industry cap is required.

2. Inflation u seem focused a-lot on this side of economic, all it means is they get less for what they pay for, it means the production is still static and the demand has increased especially thru population booms that are large and shocking to the market that more ppl entered then what products exist, this leads to an expensive city which is bad indicator of an economy since their not getting wealthier but poorer. It's like garowe electriciy company, if he doesns't invest in his production of electricity, it will lead to ppl using to much usage and prices will sky rocket as it starts to get limited, he will need to re-price his electricity then and u will end up paying for one week of electricity at the same price of one month before. This is usually due not fake currency only but also LARGE IDP pool who enter the town sending it into population vs production problem. Those IDPS r essentially making your ppl poorer by the day as they need to spend more for the same items as their extra demand is sending the products/services into shortage and they have to respond by re-pricing higher

This happens not just on electricity but anything being sold.

 

[DR OSMAN]

@PuntiteQueen this is the worst outcome in an economy. Not producing something, it leads to this

We must avoid this scenario at all cost, even if the work they do is unskilled and low product it's still better then producing nothing because then all u get is 'nothing' like you see in this image. Sis noone is going to give u money if it's not exchange for labor, service, or product and they measure the 'product/service' value if it's unskilled/skilled, and then the supply of it and how 'scarce or abudant' it is, once your in a field of abudunt like 'agriculture' you will end up selling at cheap rate due to large supply of it so their always going to be poor by what they produce is just not an 'industry' of large profits as they don't want food which is an essential being hard to buy so they over-supply it by 1.5 time the global market need, so if u r still in that industry, your already in a market that is purposefully over-supplied in order to make sure it's cheap. They won't do that with 'cars, phones, tech, equipments, etc' notice that? they ensure supply/demand match and it doesn't exceed it and hence making it 'good returns' industry.

 

[DR OSMAN]

@PuntiteQueen the best economic model follows investment and supply chain creation meaning how many other actors in the economy participate since it leads to an over-all market production. U want an investment that always lead to other sectors involved. For example look at this pathetic supply chain like farmers the only other actor involved is 'truckers' and then they park on the ground outside with a 'rug' from the 'rug store' kkkkkk. Very minimal actors involved.

Where-as look at the western supply chain for farmer. It goes from farm to trucks to refigeration, property leasing, electricity, telephones, it leads to carpenters building your store equipments, nails, wood, you see the drift right? just from one 'farmer' in the west has this supply chain involved where it creates work for other parts of the market and hence employment. Always look at the supply chain in Somali investors and u will see it's minimal or non-existant showing u a govt that isn't grounded in economic reasoning to ensure each investment creates a maximum supply chain and giving preference to those investors with low 'tax' as it will be recouped thru the supply chain growth and high tax to those who do not create supply chains as a punishment.

 

[Inquisitive_]

Exactly, I wonder what the best ways to do this is, a lot of people cite security issues as a concern but a lot of businesses have been created and they are thriving.
Another issue people talk about is cost of electricity.

The main problem we collectively suffer from is that the bulk of our finances is in the hands of visionless small-minded monopolists.

They don't even have the common sense to pave the road in front of their offices or even provide parking for their customers, but they are busy competing with other small businesses in selling milk and honey while stifling innovation.

The concept of investing in startups is alien to them despite the fact that they sit on a large pile of $$$, look at all the angel investors in the West all desperately on the look out for the next big thing to ensure they own a piece of it, while in Somalia their focus is the opposite on monopoly and shutting others out by any means necessary, the level of xasad in this country is catastrophic.

If just one of our many conglomerates had a vision, they would be running Somalia today not leaving it to the Arabs or Turks, watch the documentary "The man who built America" they are essentially all business people, they didn't even do it to benefit the people, but rather to benefit themselves which is usually mutually exclusive.

In the case of exporting livestock and finding new markets this is government task, it's never left to the farmers or cattle ranchers themselves.

 

[𐒁𐒚𐒒𐒂𐒘𐒂𐒗 𐒎𐒚𐒗𐒗𐒒]

The main problem we collectively suffer from is that the bulk of our finances is in the hands of visionless small-minded monopolists.

They don't even have the common sense to pave the road in front of their offices or even provide parking for their customers, but they are busy competing with other small businesses in selling milk and honey while stifling innovation.

The concept of investing in startups is alien to them despite the fact that they sit on a large pile of $$$, look at all the angel investors in the West all desperately on the look out for the next big thing to ensure they own a piece of it, while in Somalia their focus is the opposite on monopoly and shutting others out by any means necessary, the level of xasad in this country is catastrophic.

If just one of our many conglomerates had a vision, they would be running Somalia today not leaving it to the Arabs or Turks, watch the documentary "The man who built America" they are essentially all business people, they didn't even do it to benefit the people, but rather to benefit themselves which is usually mutually exclusive.

In the case of exporting livestock and finding new markets this is government task, it's never left to the farmers or cattle ranchers themselves.

That's a very good point you made about xaasid businessmen. I once read about the owner of Xalwo Kismaayo paving the street in front of his business , which I thought was such a good idea.

I feel like since many investors are clearly selfish, councils should start building business centres and renting it out. If the council owns the premises, they will be forced to maintain it and oversee it and I think it would cut out certain vulture practises.

I'm sure you have also heard about businessmen importing expired products, which includes medicine. This is the issue with lack of oversight, I saw something about Bosaso having a testing facility but not sure how efficiently that's ran.

Btw... I'm not sure how well this is done but there are companies in Somalia that are shared by different clans such as Golis and even this energy company in Mogadishu.

 

[𐒁𐒚𐒒𐒂𐒘𐒂𐒗 𐒎𐒚𐒗𐒗𐒒]

@PuntiteQueen the best economic model follows investment and supply chain creation meaning how many other actors in the economy participate since it leads to an over-all market production. U want an investment that always lead to other sectors involved. For example look at this pathetic supply chain like farmers the only other actor involved is 'truckers' and then they park on the ground outside with a 'rug' from the 'rug store' kkkkkk. Very minimal actors involved.

Where-as look at the western supply chain for farmer. It goes from farm to trucks to refigeration, property leasing, electricity, telephones, it leads to carpenters building your store equipments, nails, wood, you see the drift right? just from one 'farmer' in the west has this supply chain involved where it creates work for other parts of the market and hence employment. Always look at the supply chain in Somali investors and u will see it's minimal or non-existant showing u a govt that isn't grounded in economic reasoning to ensure each investment creates a maximum supply chain and giving preference to those investors with low 'tax' as it will be recouped thru the supply chain growth and high tax to those who do not create supply chains as a punishment.

So true. I fear that most of the raw materials used in Somalia are imported from abroad, if not most of the supply chain.
In fact, it seems most shops just sell imported products, smh!!
Even simple things which can be made in Somalia.

 

[Zenith]

We need to focus on a industry and make that our thing for more rapid development.

 

[Inquisitive_]

That's a very good point you made about xaasid businessmen. I once read about the owner of Xalwo Kismaayo paving the street in front of his business , which I thought was such a good idea.

I feel like since many investors are clearly selfish, councils should start building business centres and renting it out. If the council owns the premises, they will be forced to maintain it and oversee it and I think it would cut out certain vulture practises.

This requires a strong government that is capable, something we lack, a strong government is able to break up these monopolies, tax these conglomerates which would force them to invest while the money moves around in the community.

Btw... I'm not sure how well this is done but there are companies in Somalia that are shared by different clans such as Golis and even this energy company in Mogadishu.

This is mostly done as a form of protection, if I am a businessman in Mogadishu and want to expand to Bosaaso, Kismaayo or Hargaisa, the only way it will survive long-term in such places if I make them either shareholders or start the business together.

 

[𐒁𐒚𐒒𐒂𐒘𐒂𐒗 𐒎𐒚𐒗𐒗𐒒]

We need to focus on a industry and make that our thing for more rapid development.

That's what happened with livestock but it made Somalis almost wholly dependent on the whims of the Arabian gulf. Even now with the locusts wrecking agriculture, we cannot rely on that either.

I wish we turned towards the sea, as it has so much potential.

 

[Zenith]

That's what happened with livestock but it made Somalis almost wholly dependent on the whims of the Arabian gulf. Even now with the locusts wrecking agriculture, we cannot rely on that either.

I wish we turned towards the sea, as it has so much potential.

We will always have that option the thing is that fishery industry in Somalia 500% corrupt

It has to be the most corrupt section of government without a doubt all the people involved have millions and misusing funds. I would snitch on people but what's the use to who