Mogadishu leading the way for modern creative businesses

[scarecrow]

Am not rer mogadishu but walahi you have to give credit where it's due! Everyday there seems to be some brave clever people, working hard to modernise this city, from restaurants, cafes, housing etc. The place might be unsafe and a chaotic but theres no denying they're leading the business world of somalia.

It's fair to say hargeisa and puntland have lagged behind mogadishu last couple of years.

You can argue its where the international money puts their money and they have access to alot of capital from the donors but either way am proud that any somali is willing to spend 50k or 200k in somalia, when they can start that business in much safer cities in Africa with much less hassle and double their investment in no time but they're willing to risk it all mansha allah!

I want to open this exact bakery cafe place in garoowe insha allah

 

[DR OSMAN]

Trust me the locals are not driving any demand in mogadishu millions of them are peasants and on a less then one dollar a day, the only business activity happening is to serve diaspora and international community, the locals live like it's the 15th century, a government success is about lifting up their locals so they are the demand for business not relying on a diaspora segment who come and go each year.

GDP wise Mogadishu isn't reaching it's full potential due to a lack of leaders coming up with plans to lift up their locals living standard.

 

[Recon Expert]

Trust me the locals are not driving any demand in mogadishu millions of them are peasants and on a less then one dollar a day, the only business activity happening is to serve diaspora and international community, the locals live like it's the 15th century, a government success is about lifting up their locals so they are the demand for business not relying on a diaspora segment who come and go each year.

GDP wise Mogadishu isn't reaching it's full potential due to a lack of leaders coming up with plans to lift up their locals living standard.

Yes but their targeted demographics are the diaspora and middle class households, they aren't doing this for development of Muqdisho or it's people.

 

[scarecrow]

Trust me the locals are not driving any demand in mogadishu millions of them are peasants and on a less then one dollar a day, the only business activity happening is to serve diaspora and international community, the locals live like it's the 15th century, a government success is about lifting up their locals so they are the demand for business not relying on a diaspora segment who come and go each year.

GDP wise Mogadishu isn't reaching it's full potential due to a lack of leaders coming up with plans to lift up their locals living standard.

Yes but these businesses are geared towards the diaspora who are returning and visiting more than ever! Why not cater to them and open up places for them to feel at home.

For someone to open up such a place in other regions you will face so many issues such as electricity, lack of skilled labour with know how to fix or maintain machinery for your business.

Not to mention the population, mogadishu has way more people living in it so far more customers for your business.

 

[DR OSMAN]

Yes but these businesses are geared towards the diaspora who are returning and visiting more than ever! Why not cater to them and open up places for them to feel at home.

For someone to open up such a place in other regions you will face so many issues such as electricity, lack of skilled labour with know how to fix or maintain machinery for your business.

Not to mention the population, mogadishu has way more people living in it so far more customers for your business.

It's not about the population only because a small wealthy population is far better then a large population with no wealth. That's why markets are measured per capita on the individuals not on population size, I prefer 10,000 populated town with $5000 dollars each year then a large population with only 1 dollar a day. Money isn't linked to population. The Australian Market being only 25 million is far more lucrative for businesses then say Nigeria where it's 300 million.

 

[DR OSMAN]

@scarecrow if u rely on the diaspora customers your business will be 'seasonal', it's not a guaranteed income-stream that is steady and predictable, the losses u would get in between when the diaspora goes back to their original country is going to be huge because your expenses are on-going but you customers are seasonal, there is a mis-match in expenditure u pay and the customers u have are not steady to keep up with your bills, so u end up not making long-term wealth because in the down-time periods ur bills are probably rising each year with inflation and your customers are disappearing so you start taking out wealth into keeping afloat for the next season when diaspora return.

U really do need the locals if u want a successful business, they are steady clientele that are going nowhere.

 

[DR OSMAN]

@scarecrow wealth in my eyes is money or assets u have excluding your expenses and debt. Wealth= assets and capital minus your expenses n debt. U need to work out what ur debt is every year, what ur expenses are and take it away from your yearly revenues, that is real wealth and if that area isn't growing, u will end up with your assets n cash depleting to keep afloat, your heading into 'bankruptcy' territory then. U will first sell your cars, then house, then u will pull out money from savings or investments, this is terrible territory to be in. Be wise about business, i've never met a Somali living beyond 'hand to mouth' that is not wealth that is surviving.

 

[scarecrow]

@scarecrow if u rely on the diaspora customers your business will be 'seasonal', it's not a guaranteed income-stream that is steady and predictable, the losses u would get in between when the diaspora goes back to their original country is going to be huge because your expenses are on-going but you customers are seasonal, there is a mis-match in expenditure u pay and the customers u have are not steady to keep up with your bills, so u end up not making long-term wealth because in the down-time periods ur bills are probably rising each year with inflation and your customers are disappearing so you start taking out wealth into keeping afloat for the next season when diaspora return.

U really do need the locals if u want a successful business, they are steady clientele that are going nowhere.

Yeah i agree with alot of what you said!
However your not just relying on diaspora which are seasonal, but for a city like mogadishu or maybe even garoowe your relying on NGO staff, politicians, middle class people, events that are taking place with alot of new visitors, or families that get large hangouts from relatives abroad.

Not to mention for you to start this type of business in the hospitality sector, your products dont have to be expensive! I'm pretty sure locals would prefer to eat and drink in a beautifuly designed modern location then their usual riff raff places! As long as you at least cater some of your products to the lower end of the your demographic.

Serving lunch or coffees that they'd get from local places but with a modern twist.

 

[Farjano-Walad]

It's not about the population only because a small wealthy population is far better then a large population with no wealth. That's why markets are measured per capita on the individuals not on population size, I prefer 10,000 populated town with $5000 dollars each year then a large population with only 1 dollar a day. Money isn't linked to population. The Australian Market being only 25 million is far more lucrative for businesses then say Nigeria where it's 300 million.

true, Nigeria is only 400 ish billion in GDP and this si after their fake GDP re calculation a couple years ago GDP was only around 275 billion but the world bank allowed them to reevaluate by claiming Nigeria miscalculated their figures since the early 90s

anyways Australia has a GDP same size as Russia, around 1.5 trillion

 

[DR OSMAN]

true, Nigeria is only 400 ish billion in GDP and this si after their fake GDP re calculation a couple years ago GDP was only around 275 billion but the world bank allowed them to reevaluate by claiming Nigeria miscalculated their figures since the early 90s

anyways Australia has a GDP same size as Russia, around 1.5 trillion

You are the economist tell him how critical it is the locals need to be the demand rather then a small segment of diaspora who live seasonly in Somalia, any economic policy not guided to changing the locals wealth will not generate investments, who will invest where there is no demand. Unless u get lucky and are going to be purely oil or mining country, u can then re-circulate the wealth and cut it up into welfare payments but that's obviously not an ideal way to develop an economy, it's a centralized economy, and we all know to well about centralising in Somalia and the pitfalls. A diverse and spread out economy is best

 

[DR OSMAN]

@Teeri-Alpha you are big proponent of low taxes and inviting manufacturers and creating factories, u assume thru mass employment this will generate local wealth and spending in the economy and other sectors will naturally be created to respond to this new local demand in the market.

I am against this policy for middle class Somalis they will refuse to work low pay jobs, it may lift up the eelay types but it won't do much for the others who are either waiting for professional jobs or they prefer to start their own business, I prefer we gear this segment towards the entrepeneur and start up market and we bring in the banks foreign and diaspora to create ' finance hub so to speak, and begin targetting this middle class segment with loans so they can create employment by filling a void in the service industry. You do know well developed markets in the world, the largest sector o GDP is services industry and that mean businesses from small to medium and corporate level and they create the most jobs indirectly then manufacturing does.

 

[DR OSMAN]

@Teeri-Alpha and me have good economical debates, Teeri knows his stuff but he seems to think manufacturing and low taxes is the solution to Somalia woes, manufacturing is the lowest paid industry, it's intended for the lowest segment of the economic pool of a society and it's generally for unskilled people.

 

[Hardrock]

Tbh If this business was open in bosaso or kismayo some people here could be singing in another tone just say Mashallah wish all the best in their business endevour and move on no point of xasidnimo.

 

[scarecrow]

Tbh If this business was open in bosaso or kismayo some people here could be singing in another tone just say Mashallah wish all the best in their business endevour and move on no point of xasidnimo.

Exactly!! I believe been happy for others increases your blessings! Xaasidnimo takes away blessings. Somalis are very xaasid

 

[Sloane Ranger]

Exactly!! I believe been happy for others increases your blessings! Xaasidnimo takes away blessings. Somalis are very xaasid

I agree akhi. Why is to hard for ppl to say Mashallah and keep it moving?

 

[Warwaaqsame]

Labo meeshan kujirto cuqdad baa dili doonta walee.
Hadey qabiilo qaar xasuuqi karaan beri hore bey xasuuqi lahaayeen.
War wax isu fala 91ki beri horaa laga soo gudbay

 

[Sloane Ranger]

Labo meeshan kujirto cuqdad baa dili doonta walee.
Hadey qabiilo qaar xasuuqi karaan beri hore bey xasuuqi lahaayeen.
War wax isu fala 91ki beri horaa laga soo gudbay

MashaAllah saxib, ronta aad ka hadashey. In aan leys cafiyo iyo hormar lagu dathalo aan loh bahanyahay sido loh gowleysto.