Puntland Investment Ideas

[DR OSMAN]

I suggest this now before the Puntland investment forum that we becareful of the industry we target, we do not want to waste our time and effort on low end products. This will not reflect our rural economy and our cities will fall behind and our rural economy will be richer per person. For example do not invest in any product worth less then 'adhi' because that is the lowest commodity in rural area. So whatever the Adhi costs we will need a product that is nothing less. So basically all essential items less then $100 dollars is a waste of time to invest into our cities.

These key areas must be maintained.

1. Boat making. This is a final end product that is worth probably 500 dollars. Keep this industry alive in Bosaso.

We need an industrial area in Bosaso, the government needs to get to designate an area as Industrial Zone. This is where the factories and manufacturing will exist. Once this is done please consider the following products we could make.

City Investments

1. Furniture. This is another high end final product worth a couple of hundred dollars per single item. Target things like Office tables for Offices in Somalia, Lounge rooms for residential homes, etc. Target the furniture with the highest return.

2. Mining sector. We need to focus on this sector to get good capital returns. Rare earth metals like platinum, gold, etc. We will need to split the revenue with the producer initially but it make a short contract like 10 years till we have enough hard capital and begin storing away these minerals for our 'PL reserve bank' system.

3. Oil. This depends on production per day. Even if your producing 10 million barrels a day like Saudi arabia. That works out to be $30 dollars per person a day because the barrel is around $60 dollars. Our GDP per capita will only increase $30 per day x 365 days a year. It will be a 10k increase. It's good investment but you will need to do 10 million barells a day.

4. Trade. Target big products and leave the essential items for 'rahanwayn' or some lower class clan. Big products I mean TV, Smart Phones, Laptops, Computers, Cars, etc. Ensure we have a trading plan set up for this and measurement. As our locals are employed in fishing and livestock rurally and our city folks are going to be recruited to work in gold mines, diamond mines and industrial scale factories that produce expensive products like furniture and boats. The only thing that worries me about trade is. U didn't create the final product, you 'bought' from overseas so your helping his GDP. Your GDP will only be calculated on the difference between the cost you bought the item for and the cost you sold the item for and the margin in-between is calculated as GDP growth only. So if you bought a TV for 1k and you sold it for 1300 in PL, our GDP only rose $300. So I am bit iffy about the trade sector, especially if you lack big spending customers. It can work in DUBAI because the locals are rich so the margin rate will be very high for your GDP calculations.

Rural Investments

2. Fishing industry. Please make sure this sector is left too the small coastal areas and not Bosaso. Bosaso will provide the boats for them and maintenance where-as smaller coastal towns will be the fishing sector. We need to ensure they work and measure their production. We want goals set on how many tonnes of fish, lobster, and other items we want removed from the ocean each day, week, month, year. We will keep increasing this year by year.

3. Livestock, Keep this trade alive as it's high end final products. Each camel is worth 1k and a goat is $100 dollars at least. Lets find ways to lessen droughts, create dams, create wells, create food storage systems like 'goat feed'. We want to lessen the death of our livestock and increase it's health and reproduction.

4. Frankincense. Keep this trade alive. It's worth $20 per kilo which isn't much but it's better then banana or mangos.

 

[DR OSMAN]

I also suggest we look into Tourism at a later stage. Our business-men and foreigners we must ask to build hotels and resorts around coastal areas, we want to bring big 'spending' tourist to inject capital and buy our products. We can raise the price so high to them and reap the GDP growth. The other sector I am very interested in is the 'brain economy' this is a long-lasting asset and what Singapore is built on and what Rwanda is aiming for.

So A mixed economy is my vision for PL. Factories targetting high end consumables like furnitures, boats, etc. Rural economy powering on with fishery/frankincense/livestock. A region economy built around production, mining minerals, and oil sectors. Finally a brain economy or a skilled population contributing inventions for general problems in PL/Africa as a whole. Technology, Health, engineering sectors is what I would personally like to see our students focusing on and supplying our market with.

I would also like to see a strong government employment sector in Garowe with locals and puntlanders all hired into departments as they grow in capacity because once the economy grows the government employees grow also as they regulate it. We should see a boom in civil/justice/courts/legal/accounting/finance and professional fields as a result in Garowe. The government sector cannot grow without a strong economy to rely on.

 

[DR OSMAN]

The only way we can barely win in trade sector is to make it a free trade zone. Bring in traders from the continent to buy their items from Bosaso and thru this hope we can enjoy a slight growth margin but this highly depends on the cost of the product, where you sourced it from, the traders from the continent and their financial capacity(which is low for africa) so I don't think it's feasible chasing this trade based economy.

My motto is simple, Untill Africa gets rich, you will not get rich thru a free trade zone.

 

[Ras]

My motto is simple, Untill Africa gets rich, you will not get rich thru a free trade zone.

A billion mosquitoes bled dry could fill up a river.

Don't underestimate the power of numbers and the potential for us to make big bucks in Africa.

Once the greedy governments let go of their markets we could step in and take over essential industries like we do in South Africa.

We could also buy huge swathes of farm land to feed ourselves since our shitty soil can't.

1 billion Africans spending $100/year on geeljire businesses would turn over 100 billion USD.

 

[DR OSMAN]

A billion mosquitoes bled dry could fill up a river.

Don't underestimate the power of numbers and the potential for us to make big bucks in Africa.

Once the greedy governments let go of their markets we could step in and take over essential industries like we do in South Africa.

We could also buy huge swathes of farm land to feed ourselves since our shitty soil can't.

1 billion Africans spending $100/year on geeljire businesses would turn over 100 billion USD.

The rule of an economy especially if your small population is to focus on expensive product production and eliminate low level item production to importation from poor countries like agriculture, food, drink, soaps, toothpaste, and small cost items. So when you do trade with the rest of the world you give them the least amount of your money while they purchase from you high end products. There is no two ifs or buts about this economic philosophy.

PL should stick to production of expensive items. When the GDP is worked out, a higher end product multiplied across the population leaves bigger GDP growth mark. So I suggest they focus on creating factories for furnitures, tables, seats, beds even. Sell this domestically to Somali-Djibouti Market. Collect big gains as each item will cost at least $100 dollars. While focusing on boat manufacturing and open up Kenyan, Indian, and Arab markets for us so we can supply them.

I even suggest teaming up with India to establish research centers regarding African health problems and working on medicine and selling this at high end prices to African countries. I have great plans for PL @RasCanjero and why I am so eager to wait for the Puntland Investment Forum

 

[Ras]

The rule of an economy especially if your small population is to focus on expensive product production and eliminate low level item production to importation from poor countries like agriculture, food, drink, soaps, toothpaste, and small cost items. So when you do trade with the rest of the world you give them the least amount of your money while they purchase from you high end products. There is no two ifs or buts about this economic philosophy.

PL should stick to production of expensive items. When the GDP is worked out, a higher end product multiplied across the population leaves bigger GDP growth mark. So I suggest they focus on creating factories for furnitures, tables, seats, beds even. Sell this domestically to Somali-Djibouti Market. Collect big gains as each item will cost at least $100 dollars. While focusing on boat manufacturing and open up Kenyan, Indian, and Arab markets for us so we can supply them.

I even suggest teaming up with India to establish research centers regarding African health problems and working on medicine and selling this at high end prices to African countries. I have great plans for PL @RasCanjero and why I am so eager to wait for the Puntland Investment Forum

You have to work with the markets available to you.

High end products are further up the value chain and hence more complex.

You won't be able to develop mid to advance industries overnight.

Also, the GDP per capita in the places you mentioned are below $50/month.

In reality, it's lower since a few extremely rich horners are pushing it up.

You can only sell them basic essentials initially.

The rich or upper middle class are far too small of a market and you'd have to compete with foreign imports.

Also, like I already mentioned; those products aren't easy to manufacture.

There's a lot that goes into furniture manufacturing. Building the infrastructure around it costs a lot of money and time.

Best to focus on high volume low priced items (fast moving goods).

For example: ship grains from Tanzania or Egypt and turn them into long shelf life pastas with a couple turnkey machines from China before selling them back to Tanzania.

That's where the huge population in Africa could benefit us.

Just the East African coast + Ethiopia has over 400 million people and a GDP of almost a trillion dollars.

Just find a product you can produce for ultra cheap using Puntland labour and East African raw materials (produce, metal ore etc).

Just by selling $10 worth of products to east Africans could provide billions of dollars to Puntland's industries along with 100k+ jobs.

 

[DR OSMAN]

You have to work with the markets available to you.

High end products are further up the value chain and hence more complex.

You won't be able to develop mid to advance industries overnight.

Also, the GDP per capita in the places you mentioned are below $50/month.

In reality, it's lower since a few extremely rich horners are pushing it up.

You can only sell them basic essentials initially.

The rich or upper middle class are far too small of a market and you'd have to compete with foreign imports.

Also, like I already mentioned; those products aren't easy to manufacture.

There's a lot that goes into furniture manufacturing. Building the infrastructure around it costs a lot of money and time.

Best to focus on high volume low priced items (fast moving goods).

For example: ship grains from Tanzania or Egypt and turn them into long shelf life pastas with a couple turnkey machines from China before selling them back to Tanzania.

That's where the huge population in Africa could benefit us.

Just the East African coast + Ethiopia has over 400 million people and a GDP of almost a trillion dollars.

Just find a product you can produce for ultra cheap using Puntland labour and East African raw materials (produce, metal ore etc).

Just by selling $10 worth of products to east Africans could provide billions of dollars to Puntland's industries along with 100k+ jobs.

No Puntlander will work then if one of his reer miyi cousin is saying I got 10k worth of livestock and growing it at a rate of 4-5 camels a year. Maybe your clan can do the low end shit sxb, but don't place it on all Somalis. Not all somali clans are equal in wealth I hope u realize that. The only place who deals with low end products is rahanwayn in PL, and I suggest taking those factories to rahanwayn territories as it would reflect better on their rural economy.