Puntland Economists Badly Needed

[DR OSMAN]

We need our own Puntland economists. They should be travelling Africa/Mid-east and 'analysing' that's countries 'imports' and bringing together Puntland business community to fill those supply inputs in Puntland.

We can examine each nation imports on GDP and select the 'lucrative' money maker option and speak to that country guaranteeing that we can supply them their needs at a cheaper cost then they're current trading partner.

Infact why are we not looking at Somalia own 'imports' and working out if their is a good money maker industry that we can install in Puntland 'industrial zone'.

@Thegoodshepherd can u explain why we only deem 'Foreign investment' as the only path to economic development?, we need multiple economic development paths.

I wish we had huge industrial parks or zones in Puntland all producing goods and products needed locally and globally. We have the infrastructure 'cargo airports' to ship in-land to any destination in Africa.

 

[DR OSMAN]

I looked at 'Rwanda's' imports and they getting 'frozen fish' from Kenya. No wonder Kenya/Ethiopia do not want a 'recovered' Somalia, Puntland would easily be able to deliver those products in Rwanda or any african country. Fish is a natural resource, natural resources shouldn't be our economic lifeline but supplementary industry where we can still exist regardless if the prices go up or down on fishery.

 

[DR OSMAN]

We need PL economist to 'find markets' globally or locally and then link up our business ppl to be the production arm of those markets. We need to also study and learn how to value-add not just run for natural resources, value-adding is what skilled economies do and they always generate more wealth then a natural resource economy.

I really do wish Somalis f*ck off with their tribal bullshit n political point scoring. We cud keep our head down for the next 10 years and change PL into industrial hub of production. The other area is banking reforms needed, money sitting in accounts is useless as it loses value each year in inflation, in 30 years it cud lose 30-60% value. We must grow our business class and provide loans so they can fill the 'service industry needs' locally.

Even me I keep my saving accounts in high interest return, it's not haram, becuz i lose 1-3% value and if stored over long period means im losing money. But these Somalis are stupid and never keep above inflation by not investing or loaning. Somalia is hit with high inflation beyond normal inflation, if someone had 5k in account, he is value is 3k now, lost 2000 just thru inflation. We need real banks in somalia who understand how money works.

Let HG N Marehan compete on FKD nonsesnse. Abgal is waiting for Somali-wayn thru capital. MJ/OGS must keep their heads down and work hard and provide proper advice to our governments if they are not moving the right way.

 

[Libaax-Joore]

Reer xaafuun&reer bayla outport seafood all over the world

 

[DR OSMAN]

@Libaax-Joore I am advising bah dubeys inay bankiyo galan that loan money and collect a nice 'fee', we will help ppl become new business men and still make money from our money. Lakin lacag iska fadhiya waa useless, wa qiimo beelaya sanaad kasto thru sicirka. Hadi 30 sano lacagtada meel dhigatid wuxu qiimo yeelanayan 50% loss markad suuqa taagtid as everything wud havee increased in prices but ur money never increased.

 

[DR OSMAN]

@Libaax-Joore I am the grand son of isimka guud of bah dubays even ask @Enlightenednomad

I will tell my bah dubays when I become isim to invest in bank shares of Somalia, especially ones that i have investigated with proper profit model. I already told my awoowe inu bah dubays uu sheego inay 'iibiyan' adhiyashooda becuz it's selling 'high' for $100 now, I always tell them to sell when there is 'drought' ama hadi kale $30 dollar bay ku helayan adhiga.

We buy more livestock when the season is barwaaqo and there is more supply, we get it cheap an sell it high in droughts.

 

[DR OSMAN]

@Libaax-Joore I examined Mogadishu, wuxu uu 'socoda' afgoye from the road project. I already purchased thru my 'reer ayeeyo' cheap large blocks in afgoye, it's sitting there for me when the town of mogadishu laga soo guuro, i will sell high, that's how u do business niyahow. It's all about buying when it's cheap, waiting for market demand when it's at highest and selling. Banks are no different, when they're is drought in loans due to unemployment or interest rates, they buy more 'assets' becuz it's cheap there is no business activity, then when the business picks up, they begin to reloan. That's the sort of bank I want baah dubays shareholders in.

 

[Kramer]

all this industrialisation needs foreign investment. IDK about puntlands saving rates but now is the time to invest that money under the mattress and sheild ourselves from the coming recession

 

[repo]

all this industrialisation needs foreign investment. IDK about puntlands saving rates but now is the time to invest that money under the mattress and sheild ourselves from the coming recession

Saving rates? Ain't no damn saving. People are living hand to mouth.

 

[DR OSMAN]

all this industrialisation needs foreign investment. IDK about puntlands saving rates but now is the time to invest that money under the mattress and sheild ourselves from the coming recession

Garacad Port was $180 million, those days of FDI are over. Building a warehouse is cheap as hell. The large purchase will be equipments and even then we don't need millions for it. Land will be sold to investors from PL govt at subsidized rate or free. Just no will is the problem. Heck the land will be 'huge park or site' where all our warehouses are centralized, this will reduce our costs to install electricity backbone, we just need to roll out power lines to 'one site' not all over the city. The electrical backbonee might need FDI or at least FDI/Local partnership becuz those huge equipment need large volume of 'energy'.

With 180 million we could have 180 warehouses if each warehouse cost 1 million, but in reality it will cost around 200-300k minus the equipment. Even if we go the FDI route, we need a 'law' passed that majority shareholder must be 'Puntite' 51% so we can prove to foreign investors we are 'serious' and taking the 'largest' ownership and losses.

All PL govt needs to do is zone out a large area in Bosaso, sell plots of warehouse land free, chase investors to provide the electrical backbone needed. When we centralize our warehouses our electricity roll out will be cheaper then having them all over the town. We can 'add industrial surge' to that part of the industrial warehouses aand residential 'surge' for residential area.

 

[DR OSMAN]

I am envisioning 'bosaso industrial park' as a large area with 100 warehouses, all producing goods n products for local or regional consumption with secure markets in the nation and globally.

I will be walking around like 'ivar on the left' giving myself the viking 'chest pump'


That alone wud add billions on top of our GDP. If u consider if we have a healthy banking system where our locals seek loans for businesses, we will make great money from our yearly 'start ups'. FDI is 'last' guy in the market, they come when the locals take the first step.

 

[Kramer]

I wish we had huge industrial parks or zones in Puntland all producing goods and products needed locally and globally. We have the infrastructure 'cargo airports' to ship in-land to any destination in Africa.

Just making stuff won't mean we can export it to anywhere cheaply

Trade is bilateral, give and take. Country A produces a good that country B wants, Incondition country A buys a good Country B produces. (both goods being comparatively cheaper in the country that produced it).

Trade is complex saxiib and requires a strong state to negotiate, No point producing goods for export that will get tariff added in its final destination ( provided its a foreign country) and make it uncompetitive.

Better produce goods to negate the billions that go offshore cause we import everything.

 

[DR OSMAN]

Just making stuff won't mean we can export it to anywhere cheaply

Trade is bilateral, give and take. Country A produces a good that country B wants, Incondition country A buys a good Country B produces. (both goods being comparatively cheaper in the country that produced it).

Trade is complex saxiib and requires a strong state to negotiate, No point producing goods for export that will get tariff added in its final destination ( provided its a foreign country) and make it uncompetitive.

Better produce goods to negate the billions that go offshore cause we import everything.

Maybe u didn't read my first post. I said 'secure local or global market' first by studying the imports of a nation locally or regionally and after that we must come in and replace it by being more competitive. We don't want to 'touch their exports' and compete with them locally. Any nation will welcome to reduce their import 'deficit' if it can secure what it needs cheaper. You simply have a defeatist attitude. If your attitude existed in 91 when we ran from hamar into Bosaso, Bosaso wouldn't be where it is.

 

[DR OSMAN]

@Kramer When I said we shud seek 'manifacturing' sector I don't mean 'petty unskilled manufacturing' but 'lucrative return manufacturing' at least 'semi skilled' and if we lack them skills, to create those skills as a govt priority and telling the locals that our economic direction requires these 'skills' to be locally.

U also skipped the part where I said banking, loaning is critical so our locals can continue building small businesses in the service sector as the economy grows, services need to keep up. We will also guide them as part of the PL economic direction to only 'focus on value-added' services.

I simply don't see our govt discussing this and it leaves a hole in my heart

 

[DR OSMAN]

@Kramer why are we not calculating how much 'oil' we need yearly creating a 'storage' facility with volumes enough for a year, this reduces our yearly costs of shipment. We can even on-sell this to Somalis at 'reduced rate' due to 'shipping' charges not being applied.

 

[Kramer]

i skimmmed through ur words, i agree, our problem (puntland) is

A. we import everything
B. Produce not enough
C. Weak currency so everything is priced in US dollar.
D. this huge deficit is funded by Aid, Livestock export and remittances

its like putting a band aid on a leaking pipe, Its not gonna be like that for ever.

your right that we need the banking sector to loan businesses , People to get the confidence to invest and save (consumer confidence). lower our imports of malayacne discretionary shit like beauty products, perfumes, etc.(Discretionary spending)

Focus on the velocity of money for goods produced locally, i.e person A buys vegetables from a farm in nugaal, person B uses income from farm goods to buy milk from herder, Person C uses that dollar from milk sales to buy phone credit to help run his milk business.

1 dollar can create 4 dollars worth of goods all circulating within the local economy win:win

 

[Kramer]

@Kramer why are we not calculating how much 'oil' we need yearly creating a 'storage' facility with volumes enough for a year, this reduces our yearly costs of shipment. We can even on-sell this to Somalis at 'reduced rate' due to 'shipping' charges not being applied.

I think there are oil storage tanks in bosaso.

The problem is bosaso port isnt efficient so tankers can line up for days, this is a common problem around africa. In mombasa it costs them 18 million a year in expenses from oil tankers waiting to be unloaded.

Thats why garacad port is so important to ease the pressure off bosaso.

 

[Chase]

i skimmmed through ur words, i agree, our problem (puntland) is

A. we import everything
B. Produce not enough
C. Weak currency so everything is priced in US dollar.
D. this huge deficit is funded by Aid, Livestock export and remittances

its like putting a band aid on a leaking pipe, Its not gonna be like that for ever.

your right that we need the banking sector to loan businesses , People to get the confidence to invest and save (consumer confidence). lower our imports of malayacne discretionary shit like beauty products, perfumes, etc.(Discretionary spending)

Focus on the velocity of money for goods produced locally, i.e person A buys vegetables from a farm in nugaal, person B uses income from farm goods to buy milk from herder, Person C uses that dollar from milk sales to buy phone credit to help run his milk business.

1 dollar can create 4 dollars worth of goods all circulating within the local economy win:win

Exactly, but what is being done to rectify this? Constantly building ports isn't going to magically lead to a developed economy. I've come to the realisation that Somali men are content with the status-quo, both local and state governments don't want to compete, if a foreigner wants to invest? Great, if not, the UN, NGOs and aid agencies have our back.

 

[Kramer]

Exactly, but what is being done to rectify this? Constantly building ports isn't going to magically lead to a developed economy. I've come to the realisation that Somali men are content with the status-quo, both local and state governments don't want to compete, if a foreigner wants to invest? Great, if not, the UN, NGOs and aid agencies have our back.

Its improving abit slowly.

more investment is needed in cheap energy first. everything else will follow.

 

[GemState]

A lack of centralization is the number #1 issue that halts development in Somali regions. If every subclan want their own exclusive city, it is borderline impossible to meaningfully develop, especially in a country as resource poor as Somalia. We also prefer building universities and hotels and airports non stop when every dollar should be going to building roads.

People thinking emotionally and not about the return on capital when investing combined with a lack of free movement makes regions basically unviable economically. This is the biggest issue with Somalia currently.