Puntland Economic Development Model Suggestion

[DR OSMAN]

Puntland is currently in the stage of infrastructure development(schools, health, roads, airport, ports, energy), they must stay on this course, but once this is complete or has reached a sufficient level, we need to move into next phase of development primarily economic. The economy is tied to many issues that we need to consider below.

Govt stability

The govt must be stable and based on rule of law, politicians must agree on taxes and laws governing it's market place and stay the course on this. This is critical for investors as they calculate their investment and returns requiring stability over long durations. The current 'chaotic informal approach' in the market place must end and we must adopt a market place based on the rule of law and quality standards, we must look at china/west and create agencies with legal powers. This is critical because the amount of investment going into our products/goods/services , the amount of effort and time allocated and our final returns are very low at the moment.

Industry

We must demand all industries create a commitee and spokes-person who will communicate with the government about challenges they are facing and opportunities. We must review existing industry players on their costs, production effort, and returns are maximized to full potential. We must stamp out manual processes also. We must scan local and global markets. We must ensure quality assurance is maintained on their work and an inspector office is created for industry. We must bring in chinese experts to provide their expertise on how we can speed up our economic activities. GDP is based on time, 12 months. We must ensure our work force is working according to an excellence model and our business people are applying proven business management practises.

Labor Skills Development

We must demand workers establish unions and present their concerns and opportunities, identify what post secondary skill investment they need to ensure their attractive to investors. We must analyze how their currently working compared to chinese-western methods and create a model that takes the positives from each regions and apply it to our workplace culture. The current culture is horrendous not knowing each year, quarter, month, week, day people are being measured for productivity outputs in their industry, while they are sleeping half the day or unreliable, this needs to be stamped out. No country wants to be apart of our value chain untill a huge cultural change happens as it will impact on their bottom line, half a day sleeping adds up over a year.

Conclusion

Puntland govt must present facts to investors regarding the investment capital, operating cost, and local skill availability. They must provide the laws and taxes. PL must convince investors they want the best for them in terms of profit becuz if they grow, our govt taxes grow, so govt/business must not see each other as enemies, PL govt should promise and implement what investors require from the business environment but taking on-board labour union advice to ensure maximum potential is reached.

PL govt must calculate how the investment will impact on it's GDP growth, we must select products and goods that have good value returns not 'bananas' like the south. We must select products where the value/supply chain can be kept inside our market so the wealth is spread out.

 

[DR OSMAN]

PL govt will require as a bare minimum

1. Legal expert to create law and order in our markets, not how it is currently
2. Investor and Industry input on how to maximise current industries and create new ones
3. Labor unions speaking for workers and how to maximize their value
4. Foreign experts preferrably china/west to provide input how to change our business and worker culture to be in-line with developed world.
5. We need a Lessons Learned repository on all investments to ensure future investors can use it as a baseline on what could've been done better.

 

[DR OSMAN]

PL govt must scan local/regional/global industries with mininal players not over-supplied sectors as over-saturated industries this will have a down-ward pressure on the final product value and therefore the value chain actors will be eating crumbs.

The final product value must be taken into consideration against investment capital(building, warehouse, equipments, etc ) and operating costs(energy, taxes, transport, salaries) and final product value x production quantity. They must provide these calculation estimations to investors if they want to attract capital.

Our current approach of just listing PL opportunities to investors at investment forum is simply not producing results, business ppl want facts n figures, potential revenue model in the industry they will put capital towards, GDP model how the sector will perform over a year.

 

[DR OSMAN]

We must decide what cycle of the product we will be on. Natural/Raw side, Processing side, Sales side or will we play a hand in all sides. We need construction material investors immediately so they can build the facilities for investors, this should all be local not imported.

 

[nanat]

Puntland needs to create it's own currency or force the FGS to speed up the process of the new somali currency.
Invest in 50 or so technical schools where people learn skills such as mechanic, electrician, fishing, office management, construction, road building, sales, nursery, dentist assistant, programming & graphic design, computer/smartphone repair, factory work like food processing/packaging machines & more other skills. This madness that everyone is attending university & goes back to coffee shops to FKD has to stop.

Stop the use of the dollar, take the dollar from the masses give them local currency & use that dollar as your foreign reserve.
The billions of dollars in circulation always ends up in the hand of some middle man in Dubai, Oman & other Asian/middle countries that export things to somalia.
Take that dollar away and use it to buy important thing such as machinery, factories, hospital equipment, skills transfer ( foreign professor, professional to teach the needed skills to the local).
Invest that dollar in infrastructure building, like roads, energy infrastructure, storage infrastructure, supply network.
Make electricity and gas as cheap as it can get.

Banking & insurance system that provide all kinds of financial services & insurance services.

And not to over regulate the market.
Just important workers rights and attractive taxation system + a good healthcare system.
Give few years and watch some magic happen.