Small service-oriented businesses dominate all countries especially developed and advanced economies. The average person is not going to establish a giant corporation, factory, or highly technical enterprise.
It would be like accusing Thai, Chinese, and Vietnamese people of only opening spas or massage parlors, or Japanese and Koreans of only operating love hotels and motels. Or saying they only open laundromats and corner shops in the West. These kinds of generalizations miss how economies actually function.
Only a few individuals typically have the capital, technical skills, and education required to build large-scale industrial or technical ventures. Once established, these ventures can then hire others but those employees often need specialized training or education as well. In contrast, service-oriented businesses can readily employ people with little formal training, which is why they proliferate and require less start up capital to set up.
In fact, small businesses are crucial for economic growth, employment, and income generation.
That said, you're absolutely right , new manufacturing facilities and product launches are happening all the time in Somalia.
In just the past month (June/July), we’ve seen multiple examples:
In Las Anod:
In Bareeda
It’s interesting how some people missed the fact that a new product share was marketed on the Somali Stock Exchange to local investors:
In Kismaayo
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radiokismayo.so
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They’re producing a variety of fishing boats , some quite sizable , including 18-meter vessels and even 24-meter boats designed for deep-sea, long-haul fishing.
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Currently, there are four modern fishing boat manufacturers operating in Somalia.
They’re not only building fishing vessels but also equipment, processing factories, cold storage chains along the coast, and supporting infrastructure like jetties for improved connectivity. New fish markets are being established as well. And with the Somali Navy making a return to combat illegal fishing, the long-term capital gains for this sector could be exponential.
That 2019 study you referenced focused mostly on Mogadishu, but similar manufacturing growth is happening in Somaliland and Puntland too.
According to a 2022 survey, there are 63 industrial enterprises in Somaliland alone. The average starting capital was $2 million mostly from local sources with the highest investments ranging between $15 and $32 million.
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Here’s a list of some of the products being produced and the number of factories for each:
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Surprisingly, some of these companies are already engaged in exports, while others are domestically focused:
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This list doesn’t even include the larger industrial plants like Horn Cements, Kabsan Batching, Liis Dairies, or SBI (Beverage Factory).
Before the civil war, Somalis operated thousands of manufacturing firms, producing diverse consumer goods and owning hundreds of private factories, besides the large state owned entreprises. In urban centers, Somalis have historically been very industrial , a legacy that continues today:
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So the pigeonholing is strange , it doesn’t seem like some people really understand how business or economics work.
How do they think these factories, corporations, banks, and financial services get funded? It’s through capital generated by small and medium businesses, agriculture, and trade. These same small businesses also play a role in funding infrastructure.