I don't understand why Somali diaspora don't invest small factory businesses in Somalia

[Octavian]

i have to ask if i wanted to open a factory in somalia as side form security,safety and energy expenses what other challenges would i face

 

[scarecrow]

They may be peaceful but it's also insanely corrupt and there's no regulation. There's no banking system. Electricity is expensive. Your property or land may be jeopardized. I was planning on starting a business with my capital and I took years to research this field, I drew up business plans and create the right network, but after taking advice from people I realized that I was doomed to fail. Somali peace and peace are also not the same thing. A tribal fight can break out anywhere in Somalia and go on for days which will hurt your business.

I think your talking about the south.
In puntland nobody can come along and claim your land. A dispute will only incur if someone sells you a disputed land which is rare and by the way very common in most of africa.

There hasn't been a tribal fight in peaceful parts of somalia specially puntland for good 20 years if there has been 0ne it lasts barely a week and gets solved immediately while any damage is compensated by the faulty party.

I think electricity been expensive is the only issue.

 

[ReyRey]

What's holding us back from setting up, small factory to midsize factories in Somalia?
Peace can only be achieved when everyone is busy with his own life.

You cant make money when you've got too much overhead like security, transportation and electricity. These are costs that you need to account for that will come out of owners pocket. This can be fixed by our gov but corruption is holding us back. Somalis will continue doing business everywhere in Africa except Somalia till our people back home wake the f*ck up

 

[repo]

I think your talking about the south.
In puntland nobody can come along and claim your land. A dispute will only incur if someone sells you a disputed land which is rare and by the way very common in most of africa.

There hasn't been a tribal fight in peaceful parts of somalia specially puntland for good 20 years if there has been 0ne it lasts barely a week and gets solved immediately while any damage is compensated by the faulty party.

I think electricity been expensive is the only issue.

Many businesses don't have a week cause there's a full blown battle on their doorstep and that's the reality in Somalia whether it is in Puntland or Somaliland. You can miss deadlines, shipment schedules etc which can ruin your business.

With the exception of key urban areas, there is mass insecurity and you do not have the protection of the state. If you want to create a business in a rural area you have to pay off local tribal elders who dip their fingers in your affairs.

When I saw the Puntland Investment Conference I thought they would address these things but the whole thing is a mess. I washed my hands of Somalia in that regard I'm planting my roots where I am.

 

[Warwaaqsame]

i have to ask if i wanted to open a factory in somalia as side form security,safety and energy expenses what other challenges would i face

It's business, challenges are never ending. The profits and the privilege you've in Somalia outweighs the challenges.

 

[Octavian]

It's business, challenges are never ending. The profits and the privilege you've in Somalia outweighs the challenges.

what kinds of business challenges

 

[Warwaaqsame]

what kinds of business challenges

Finding a market/customers, good skilled workers, transportation. You've to do many things by yourself, that you could outsource to other companies in other countries.
But the profits are huge. If you just open a Starbucks style cafeteria in hargeysa, bosaso or in xamar you will a lot of money.

 

[Octavian]

Finding a market/customers, good skilled workers, transportation. You've to do many things by yourself, that you could outsource to other companies in other countries.
But the profits are huge. If you just open a Starbucks style cafeteria in hargeysa, bosaso or in xamar you will a lot of money.

i see but i have to ask whats the pay in such places

 

[scarecrow]

Many businesses don't have a week cause there's a full blown battle on their doorstep and that's the reality in Somalia whether it is in Puntland or Somaliland. You can miss deadlines, shipment schedules etc which can ruin your business.

With the exception of key urban areas, there is mass insecurity and you do not have the protection of the state. If you want to create a business in a rural area you have to pay off local tribal elders who dip their fingers in your affairs.

When I saw the Puntland Investment Conference I thought they would address these things but the whole thing is a mess. I washed my hands of Somalia in that regard I'm planting my roots where I am.

Do you think there are no risks whereever u set up!

In the west its redtape, bureaucracy, tax, lots of competition.

In somalia it might be security although i dont see an issue with security in garoowe or hargeisa.

Do you think the local tribes will not want to protect or be heavily invested in the security of factory which is providing much needed source of income for them.

They will protect it to death, they are hungry and desperate for investment.

 

[Warwaaqsame]

Do you think there are no risks whereever u set up!

In the west its redtape, bureaucracy, tax, lots of competition.

In somalia it might be security although i dont see an issue with security in garoowe or hargeisa.

Do you think the local tribes will not want to protect or be heavily invested in the security of factory which is providing much needed source of income for them.

They will protect it to death, they are hungry and desperate for investment.

I agree with you. My uncle who has hotel in xamar, his hotel was bombed, the locals and business men in the area, who he had little to none contact with, were offering him everything, money, free labor to reconstruct his hotel, security.
The locals would rather support a business who's employing them, than criminals from their clan.

 

[repo]

Do you think there are no risks whereever u set up!

In the west its redtape, bureaucracy, tax, lots of competition.

In somalia it might be security although i dont see an issue with security in garoowe or hargeisa.

Do you think the local tribes will not want to protect or be heavily invested in the security of factory which is providing much needed source of income for them.

They will protect it to death, they are hungry and desperate for investment.

If I go to rural Kansas I promise you there won't be any security issues. There's more to Somalia than the towns, setting up shop outside urban centers requires the approval of nearby settlements who can dictate whether or not you can continue operating there.

I should not have to court favor from local tribes for security for my business, property rights should be protected by law and enforced otherwise you need kinship protection to survive.

 

[scarecrow]

I agree with you. My uncle who has hotel in xamar, his hotel was bombed, the locals and business men in the area, who he had little to none contact with, were offering him everything, money, free labor to reconstruct his hotel, security.
The locals would rather support a business who's employing them, than criminals from their clan.

Exactly!

 

[scarecrow]

If I go to rural Kansas I promise you there won't be any security issues. There's more to Somalia than the towns, setting up shop outside urban centers requires the approval of nearby settlements who can dictate whether or not you can continue operating there.

I should not have to court favor from local tribes for security for my business, property rights should be protected by law and enforced otherwise you need kinship protection to survive.

Setting up in rural kansas will not be without its obstacles, your religion and race been one.

Either way i can assure you apart from infrastructure and energy issues somalia is the best place to start a business!

We need us the young to pave the way, so that future generations can have a model to work with.

If you start your factory in your town or region others will follow you. Factory by factory the country will be developed and all those issues you speak of will be resolved.

 

[repo]

Setting up in rural kansas will not be without its obstacles, your religion and race been one.

Either way i can assure you apart from infrastructure and energy issues somalia is the best place to start a business!

We need us the young to pave the way, so that future generations can have a model to work with.

If you start your factory in your town or region others will follow you. Factory by factory the country will be developed and all those issues you speak of will be resolved.

That's not true, I am protected by law regardless of religion or race. The only thing we can agree on is that it's safest to start a business in your own region. Somalia is ranked the lowest in property rights and doing business.

https://data.worldbank.org/indicator/IQ.CPA.PROP.XQ?locations=SO&most_recent_value_desc=false/

Business Ready

The Development Economics Vice Presidency (DEC) is the premier research and data arm of the World Bank. DEC increases understanding of development policies and programs by providing intellectual leadership and analytical services.

www.doingbusiness.org

 

[Warwaaqsame]

That's not true, I am protected by law regardless of religion or race. The only thing we can agree on is that it's safest to start a business in your own region. Somalia is ranked the lowest in property rights and doing business.

https://data.worldbank.org/indicator/IQ.CPA.PROP.XQ?locations=SO&most_recent_value_desc=false/

Business Ready

The Development Economics Vice Presidency (DEC) is the premier research and data arm of the World Bank. DEC increases understanding of development policies and programs by providing intellectual leadership and analytical services.

www.doingbusiness.org

That's ajinabi version, those western organizations love to shit on Somalia's image.

 

[scarecrow]

That's not true, I am protected by law regardless of religion or race. The only thing we can agree on is that it's safest to start a business in your own region. Somalia is ranked the lowest in property rights and doing business.

https://data.worldbank.org/indicator/IQ.CPA.PROP.XQ?locations=SO&most_recent_value_desc=false/

Business Ready

The Development Economics Vice Presidency (DEC) is the premier research and data arm of the World Bank. DEC increases understanding of development policies and programs by providing intellectual leadership and analytical services.

www.doingbusiness.org

Really your gonna go by some half researched cadaan study which is catered towards foreign investors. You been somali don't need to read that surely!

 

[repo]

That's ajinabi version, those western organizations love to shit on Somalia's image.

Really your gonna go by some half researched cadaan study which is catered towards foreign investors. You been somali don't need to read that surely!

There's not a conspiracy against Somalia we have to be objective and self-critical. When you asked yourself why Somali businessmen prefer going to other African countries it is because of things like this.. I understand if you want to open a business in an urban center but it's not the same when you go to rural Somalia and you have to remember a big proportion of Somalis live in those areas.

 

[Abaq]

Thank you saxiib do you think my Somali could vastly improve if a listen to BBC Somalia alot?

That's how I learnt. Also reading the news in Somali and using a somali english dictionary. Slowly over time it improved.

 

[Abaq]

The biggest problem is the cost of electricity. After that, finding skilled workers is a big problem. Security and property rights are not a problem in the big safe cities.