Puntland Economic Model Needs Banks

[DR OSMAN]

I've repeated this for years and years, PL needs strong registered private banks with local/diasapora/foreigners all contributing capital and begin investing into small independent start ups. PL needs it's population to continously expand it's small businesses sector.

This is good for banks becuz they make money from their small business loans, this is good for our economy as govt collects growing tax revenues and it's even good for corporates or big business people who can create investment banking firms that specialize in surveying the market for successful starts up and have an 'acquisition' portfolio(buying them out) and enjoying the profits without the 'losses' becuz the small start up would've gone thru the 'loss phase or the hard 5 year journey' and the corporate 'avoided' that and bought it while it's on a high. Even if the owner won't sell, they can make it 'merge' with your corporate group and make it a public 'business' with shareholders and u have a 'controlling interest 51%'.

Everyone wins in this economic model. Construction companies also grow stronger and boom with locals all building new homes with hard capital as down-payment from banks,, land-rates grow for local governments, supply chains all grow especially goods/services. Why is Puntland not adopting this model? I suggested this for years and years, do they just want to wait till Mogadishu does this?

 

[DR OSMAN]

I am suprised why Puntites don't like banking. That's like your money working for u by investing into your people to create business ideas, buy homes, cars and u make money just from loaning, u contribute to supply chains in good/services in the market place to grow with new spenders.

It's the easiest way to make sure your capital grows not remain stagnant and even worse let inflation 1-3% yearly devalue your idle capital. Why don't our big business people come together and create a joint investment banking venture who's job is to primarily scan the market for successful new start ups and acquire those businesses or at least 'merge' it into their group of busineses and have controlling interest 51%.

That investment bank will be huge money maker becuz it doesn't take losses and only buys successful businesses out or merges it with their current portfolio. This what happens all the time in wall street new york.

This is how rich countries got rich. They didn't get rich thru aid or fdi. The worst thing in an economy is 'sitting idle' u need to 'move' even if it's losses u have 'learned' something, the worst option is this IDLENESS.

 

[nanat]

Puntlanders/Somalis need to build their own bank/investment Firm in the west, so Somalis in the west can directly invest in their home towns.
The Somalis in Somalia should also be given the opportunity to invest in the west.
Like invest in trucking, food, Tech industries in the west while they are drinking their tea at Eyl Beach.

 

[nanat]

The reason Somalis don't like Banks is because of riba, but in today's world there's no fucking way to avoid riba.
Riba is everywhere and if you try to avoid it inflation, market instability will destroy your economy, it will also be extremely hard to get enough foreign currency to trade with others if you avoid riba.
Like how the hell would you get enough foreign currency reserve if you avoid riba.
Every country is not lucky to have valuable minerals on their land.

 

[nanat]

Not having Banks is one of the big reason why Somalia will never be a rich country.
Banks are like the bank end system of the economy. While every economic activities are constantly happening with less calculations the banks are the ones doing all the important calculations.