When it comes to education, specifically in classes, few of the students always dominate. It is one of the teacher’s main challenges how to balance the class- the acumen and the tedious students. Each has got to be educated in the best way possible. Each student has got the right to be motivated and reinforced in regarding his or her situation.

In Somaliland public school students are put into classes without any kind planning for how the class should be run. Academically best students and lowest students sit in the same forms. This always leads to total maladjustment in the classroom- lack of understanding, disturbance, and confusing interaction among pupils.   

First and foremost, diagnostic tests are to be taken in every grade at the beginning of each academic year. The students should be grouped according to their grades. For example, in mathematics class, students get grades between 85% and 100% should be classmates. Students receive grades between 75% and 84% should be classmates. Students get grades between 65% and 74% should be classmates, and so on. This kind of grouping puts the classmates almost on the same page. They understand the details together because their level of understanding and academic is close. The grouping based on grades also helps the teacher to prepare the suitable lesson for every class. Advanced classes might be given different kind of explanations and homework from the lower level classes.

 Grouping-based-grade is effective way to motivate pupils. Every student can challenge his or her classmate. Higher level students will work hard in order not fall into lower level classes. Lower and middle level students will pore over the books to join the higher level classes. The overall outcome is to be long hours of studies for everybody.

This system can be tough unless teacher-rotation is changed to student-rotation. One student can be good at English but not at physics. Such student may attend advanced class in English but lower level class in physics. To do this, whenever a period is over, each student is to move to his or her designed class, but teacher should not move. For example, the biology teacher stays in a specific class, Biology-Class, and different level students visit him there each period.

Changing the current public-school managing is necessary for both psychologically and academically: same level classmates could fly as a flock and the teachers could run the business smoothly. But when a tedious and a bright student sit in a same chair, confusion and undesirable interaction must overshadow the classroom.

By Goth Mohamed Goth

H.E Vice President Abdirahman Abdillahi Ismael “Saylici” today commissioned the second phase upgrade project which the government says is part of a bigger plan to improve the facility to make it a regional flight hub, the airport which was first constructed by the British Empire in 1958 and since has not had any major upgrade.

VP Saylici speaking during the function thanked the Kuwaiti government and expressed his appreciation on behalf of the people of Somaliland for their generous donation.

After the groundbreaking the VP was also given an in depth tour of the ongoing construction work which includes the 1.2 km of runway extension, this second phase was made possible by the fulfillment on our after the donor country was satisfied by the work on the previous project  hence the recent signing of the new agreement between Hon Mahmoud Abdi Hashi and Kuwaiti official in Kuwait which secured additional $5 Million to the project previous $10 Million used in the upgrading of facilities in the two major airports and the latest grant will be utilized for the construction 1.2 km of runway extension to the recently renovated 2,466M runaway , installation of lighting system for night landings as well a 70 KM security perimeter fence and aircraft hangars at the Egal international airport.

The existing length of the apron at the Egal international airport which is 1410M will be extended 100 x 50 meters in order to accommodate several aircrafts. For the safety and security of the passengers the Airport terminals and the Airport property the apron area will be  expanded so the aircrafts can park away from the terminal and maneuver easily around the apron without damage to terminal property or the aircraft itself.

The Minister of Aviation also added that the duration of the Kuwait funded projects expected to last for six month and it will officially commence on the 1^st of March till August 2014 The Project will be jointly monitored by the National Tender Board, Ministry of Civil Aviation and representatives of the Kuwait Fund but all funds relating to the project shall be solely administered by representatives of the Kuwaiti fund as I heard said before we had agreed to this term with Kuwait because we are committed to be transparency with all donor funds, rather than say gives us the money, we tell them help us build infrastructure”. When the project is completed Kuwaiti Fund will turn the complete project back to Somaliland government.

Kuwait government will fund this project approximately with five million dollars, with the understanding that they will manage the allocation of the funds.

When the current government came to power the Egal airport was classed as class2 runaway but now its class 7 runaway and when its finally completed it will be Class 10 runaway.

Hon Mahmoud Hashi also revealed plans by the government for the acquisition of fire Fighting One of the important thing in airport environment is an Airport Rescue & Fire Fighting, this is the first respond in case an emergency at airport or in the vicinity of the airport & When the alarm sounds and aircraft rescue fire fighters (ARFF) are called to duty, they must use the skills they have learned through experience and training to save lives and to protect property.

He said the upgrade will contribute to the Somaliland society socially and economically as well as enhance Hargeisa city as a key regional flight hub in the future.

The political fall-out hitherto witnessed in our parliament has had its spoils seep outdoors hence are we now bordering a potential political upheaval if it is not swiftly and decisively put in check.

The latest to come out of the power struggles that pits to their claws two political camps against each other’s necks is now taxing speedily along a bitter rivalry tag-of-war lane; which has just seen the Kore and Abdirahman-dere led mediating teams break camp.

They both affirmed in a joint press release that the conciliatory (or was it re-conciliatory?) talks could not proceed because they were drifting further miles apart instead of closing in ranks to break their dead-locks.

Since the Guurti last stepped in to defuse a political “timeless” bomb within the parliament, the two committees of seven-a-side sought from the Elders to try thrashing it out (amongst theirselves) in an initial basis. Now that they have come out clear on further drifting apart, at least they showed a gesture of wisdom, rarely seen in the reps, hence passed the buck back to the Elders.

Given that the issue has now grown out of hand and several regions are seen to fueling the matters’ fire by pouring on more inflammable substances by hollering loudly the infamous tribal cries of foul, the repercussive upheaval on socio-political security is now even more tenable.

Without reminding our readers of SL’s trademark pacification of homegrown talent that has made us internationally a house-hold name, the same acumen should now be put into gear, and in full throttle at that.

The Guurti, should relieve, once more, up to its reputation and not only do the necessary, but should this time round, put better modalities to hinder future political hiccups that threaten such asunder-rendering implications in the future.

By both explicitly and implicitly, the political fallout seen which has at its base a core political power struggle causative agent, dents by precisely dealing our integrity, image, essence, pride and ultimately our aspirations a serious blow.

By and large as the dents of the blows may be, all stakeholders in the sense of our nationality, stands to take the hit and loose if we don’t collectively put the situation in check.

The populace is naturally put at paints hence subjected to violent subsequent jolts in their minds when they perceive the clannish and tribal way the whole issue has veered into.

The country should not allow unwarranted petty issues to eclipse or rather take our time at the expense of national development. It is more than just being wise, just as it is a top priority issue, to fully support the Guurti and blend in with their efforts to bring the issue to a close.

The Guurti need more than the normal blessings showered since their most prominent one was reported to lament being tired of petty or trivial issues consuming their illustrious time. Of course he is/was right.

By Abdirahman Mohamed Dirye

Somaliland’s social disease of nepotism and invading tribalism seemed to die down during President’s Kahin’s reign but aggressively revisited to the highest echelons of the government. Furthermore; new phenomenon was added to the danger: greedy MPs’ of “brown envelope” accepted to act as uncle ruckuses in the political dramas portraying the Speaker of the Parliament as ugly culprit whom they were filmed hugging and bragging him yesterday when he returned from overseas! The Parliament built, financed, and approved by the EU became a supermarket where anyone’s search for approval of a project is just a matter of money. And that is the end of the democracy. Dirty politics or mudslinging thrives on ignorance and selfishness; above all, there is no code of conduct for office holders or separation of powers.

For lack of political literacy, the government begun to tribalize the national institutions giving not just to one tribe but to anyone they mistakenly thought toothless and aimless, inward-looking folk. The ordinary people who do revolutions and extraordinary things in the other parts of the world are alos passive and divided over clannish abstract ideas.

 In 1991 the Wahabi cult brought good Hadhith “bribery giver and receiver are cursed by Allah” but the Hadith became counterproductive by increasing bribery takers from zero to thousands when Silanyo included into the cabinet. The bribery has so many positive names in the political arena of today and temptation to take it has never been stronger.

 Kulmiye ruling party is dominated by Sheikhs and Akhwanes, and Wahdadis wearing Arab and Paki costumes and robes with medieval turbans who claim to be perfect and clean and less materialistic. Although orthodox Islam demands humility and social justice, the activating animalistic instincts of eating out from Ritz— see Somali TVs adverts about food and refreshments in Dubai, London ,and Nairobi—and of doing polygamy for sexual gratification but with subsequent divorce is the daily bitter reality; the more religious people become the less faithful, and practicing they become today.

The days of parroting checks and balances by the incumbent president are over too! He is always silent when political waves are in his favor but he yells at us whenever he feels threat to his throne or unplugging of millions of dollars pipeline from ports through accountability.

MP with condition of anonymity said “I was given good money to vote against Hon. Speaker of Parliament, a man of high caliber and high credibility in the eyes of the public but money is a kind of religion here.” “Though I was at the bottom of the UK society, I am gonna buy a mansion in Monte Carlo”  “When somebody dials me I don’t reply until my Zaad account is credited” he added. It is all about money, MPs are loyal to cash only. Their pockets are their ears. This reminded me of a day an able-bodied man lined up in Sooyaal Office with disabled to take cash. And passerby saw him and asked why are you there “I am disabled in the pocket!” he uttered and kept in the line. Maybe that is where we are today.

 Don’t be with wrong camp today simply because you hate someone or feel minor grievances. Stand by justice because you can be the next target for ailing blind regime led by half-eyed man.

It is a grotesque to expect the president of such experience to behave in such silly way to invade the parliament and try to oust the Hon. Speaker. However; Erro exercised his authority to demote his two secretaries who used to sit beside him just to entertain him with good jokes and standup comedies, in my knowledge the speaker committed no crime so far, but what upset the ailing president and his Friendly Nurse is yet a mystery. Is there another Uf iyo Akh concert in the pipeline? Probably not.

Mr. President I know your foolish coteries are telling you the ordinary are tired of taking laws into their own hands and showing small uncle Ruckuses ( Wajikumacaash)  of various tribes in the TV  avowing you to lick your backside in all circumstances and then your cohorts  inform you with good tidings that you are the most popular figure in the country for you are repaired your restroom or Presidential Road before the recognition. They tell you all your political peers had gone and you can manipulate the ordinaries as much as you wish to rig the election to win which is not true. But let me tell you this: people who love Somaliland up to death will punish you with their votes in the next election much worse than UDUB.  People will never relinquish their rights for the sake of bucks; though money and women are the greatest political weapons today, there are people of integrity still left in the world.   I am sure.

However; MPs fell short of their duties and turned to vending machine which only need to be inserted some coins into them or turned to vehicle on rent to use by every driver provided with to have money to lubricate their hands.  But Somaliland deserves better MPs.

mrdirye@gmail.com

By M A EGGE

The Minister of Information, National Guidance and Heritage Hon. Abdillahi Mohammed Dahir U’kuse has urged the UK to factually grasp with the real ground situation of Somaliland hence reconsider their alerts on security issues.

The minister who noted the British government as being a historical and longtime friend and ally of Somaliland was apparently referring to this week’s security alert given to her citizens concerning visiting SL and Somalia which comes a week after another one from the US.

The Foreign Minister Mohamed Bihi Yonis has just left to London, UK.

At the same time the minister warned entrepreneurs who deal with anti-Somaliland aspirations as being “abetters in cahoots with the enemy of the land”.

Hon. U’kuse gave the caution in the backdrop of the recently banned Universal TV continuing transmitting SL news by proxy from abetting networks in what he termed a “veiled defense in ultra modern technological appliances” that facilitate them.

Noting that the banned television infringed upon all legal and logical laws and regulations hence flouted all norms of ethics and etiquettes was still boosted by Somalilander business fraternity who are associated with them.

Meanwhile, the minister appointed a new SOLNA chief executive in a bid to reflect regional representation and appointments equality.

He thus named Mr. HusseinAden Yusuf alias Kurdi as the news agency’s new boss and his deputy as Mr. Yusuf Mohammed Ismael (yare).

At the same time the minister elevated the former SOLNA chief Mr. Ahmed Hussein to become the minister’s advisor.

By Goth Mohamed Goth

H.E Ahmed Mohamed Mahmoud (Silanyo) has send a message of condolence to the family, friends and to the Somaliland nation at large on death of the late Ali Abdiqadir Farah who passed away in the UK on the 14/02/2014.

May Allah (SWT) bless his soul our thoughts and prayers are with his family during this difficult time .His untimely death is a great loss to his family and to the Somaliland nation at large.

“Verily to Allah, belongs what He took and to Him belongs what He gave, and everything with Him has appointed time …..and then he ordered for us to be patient and hope for Allah’s reward.

We ask Allah(Subhana Wa Ta’ala) to forgive all his sins and take his soul to Jannat ul Fardowza,ameen. And give patience to his family and magnify your reward at this time.

                                    Inaa lillahi Wa inaa Ilayhi Raji’uun.

Ahmed Saleban Dhuxul

Presidential Spokesperson

By Amanda Roth

Every year, hundreds of thousands of Somali immigrants walk into small money transfer organizations in more than 150 countries around the world in order to send money to relatives in their homeland. Their funds prop up local and regional economies, keep families fed, and help preserve stability around the country. But this soon may change. As international banks shut down money transfer organizations to curb the funding of terrorist groups, many Somali workers worry their families will no longer have an income.

In Somalia, (where there hasn’t been a central government since the collapse of the Somali state in 1991), remittances are the single largest source of revenue. Although difficult to measure, remittance flows are thought to total $1.2 billion a year, surpassing foreign direct investment, livestock trade (Somalia’s largest commercial sector), and international aid.

Yet funding from the Somali diaspora is teetering on a precarious precipice. In September 2013, British banking giant Barclays sent notices to 250 money transfer companies from a variety of countries, notifying them that Barclays would be closing their accounts due to fears of money laundering and terrorist financing. Dahabshiil, Somalia’s largest remittance organization, won a temporary injunction against the bank in November, delaying the closure until a full trial can be held.

Barclays is one of many banks that have made the decision to close the accounts of money transfer organizations over the past fifteen years. Faced with ever-greater regulatory scrutiny since September 11, the inherently anonymous nature of money transfers represents a significant risk for large international financial institutions. Most recently, Minnesota-based Sunrise Bank cancelled its money transfer accounts after two Somali women were convicted of sending money to the Al Shabab terrorist organization.

Somalis around the world are holding their breath as they wait for the outcome of the Barclays case. Dahabshiil is not the only company threatened by the case’s outcomes, nor is Somalia the only country at risk. But the situation is particularly ominous there, where money transfer organizations are the only means of transmitting money to many parts of the country, especially in rural areas. Approximately 60 percent of the remittances sent by Somalis in the diaspora are routed through Dahabshiil. For thousands of families across the country, funds from abroad are the only source of income. Without them, millions of individuals would be without a roof over their heads or food on their tables.

As more banks close their doors in the face of international pressure, an underreported risk rises. Beyond devastating the lives of individual Somalis, eliminating the transfer of remittances could decimate one of the most promising building blocks for sustainable, national peace.

While every effort should be made to regulate against potential terrorist financing, cutting off this crucial lifeline will likely do more harm than good. Instead of taking rash action to prevent alleged money laundering, the international community should be looking to Somalia’s hawala system to understand the vital role remittances play in creating stability.

Hawala organizations collect funds from Somalis living abroad and contract with agents on the ground in the country, who use mobile phones and email to transmit the money to the recipients. These trades often occur in less than 24 hours. Later, the organization reconciles the funds transfers through a larger host institution, such as Barclays. The hawala system is widely used throughout Africa and the Middle East.

Somalia does not have a formal financial system. International aid organizations cannot operate freely in much of the country due to violence, and although the United States recognized the transitional government last year, there is still little infrastructure and few employment opportunities. The severe famine that occurred from 2010 to 2012 further exacerbated existing poverty and insecurity. The hawala system means that funds can be sent nearly anywhere at anytime, whether financial infrastructure is present or not.

“Somalia has not been functioning for over 23 years, and all those sectors and all those institutions have been completely destroyed,” notes Jamal Gelle, a Somali immigrant living in Minneapolis, Minnesota.

Despite working full time and attending school to become a certified public accountant, Gelle sends several hundred dollars to his mother and siblings in Somalia every month. “They mainly use it to eat, for food,” he says. “My brother also has kids and some of the money pays for schooling, because schooling is not free, and for the books and uniforms that they need.”

By keeping families and individuals from extreme poverty, remittances may actually limit the appeal of terrorist groups such as Al Shabab, who often recruit young, unemployed, and desperate men as members. In addition, in some parts of the country – especially the more peaceful, semi-autonomous regions of Somaliland and Puntland – diaspora members are increasingly sending money not just to support their families, but to contribute to community development and peace building projects in their hometowns.

The role of remittances in peace building is receiving increasing attention among academics and practitioners. Funding sent by the diaspora fills crucial gaps in recovery, reaching individuals and communities that aid often doesn’t, and provides an insurance mechanism to subsidize unemployment during the crucial post-conflict period when there are not enough sources of income to provide for the population.

“There’s a tendency to focus on piracy and terrorism, but not to focus on the role of state building and community” when the international community speaks about Somali remittances, notes Dr. Keren Weitzberg, a postdoctoral fellow at the University of Pennsylvania who has done extensive work on the Kenya-Somalia border.

Abdi, a Somali living in Colorado who works with the refugee community there, agrees. Many citizens living abroad view remittances as both a familial and social obligation.

“I actually haven’t met anyone who doesn’t send money home,” she notes. The money is “not just to feed our families, it’s also to rebuild. Although we can’t be there, we have a responsibility to send money that can help rebuild the country.”

Somaliland, for example, which receives little targeted international aid due to its disputed independence status, has relied heavily on its diaspora to begin the process of reconstructing as conflict has tapered off. Remittances provide small capital contributions for families to begin small businesses in the region, such as food and clothing trade, or taxi and bus companies. The funds have also been used to finance community projects, build schools, and pay salaries of critical workers such as police officers, teachers, judges, and clerics.

The temporary injunction against Barclays will keep the account open for a few more months, but the larger issue still remains. Dahabshiil, and many other money transfer organizations, have voluntarily complied with all existing regulations. If Somalia’s hawala system continues to be indiscriminately targeted as part of ongoing counterterrorism efforts, any advancement toward stability and peace will likely be reversed.

“What I suspect would happen is that not only would people suffer,” says Weitzberg, “but these money transfer systems would just continue and become much more informal and less transparent. I just see it as a tool, and removing the tool is just going to do more harm than good.”

As long as Somalia remains without any formal banking system, the remittance system will be difficult to monitor. Yet the international community must also realize that as long as the country’s ineffective government remains unable to provide for its citizens, the money sent by the diaspora is crucial for the wellbeing of its citizens and its overall stability. Cutting this critical lifeline will threaten the already fragile economy and bring further hardship to millions of Somali citizens.

Source: World Policy

*****

*****

Amanda Roth is an editorial assistant at World Policy Journal. She is a current graduate student at Columbia University’s School of International and Public Affairs.

Photo: Mohamed Amin Jibril/IRIN

By Anjli Parrin

View over a section of Baraka market in Mogadishu

NAIROBI, 14 February 2014 (IRIN) – Somalia’s economy has managed to survive state collapse, maintaining reasonable levels of output throughout the country’s two-decade-long civil war. Now, with political recovery and transition slowly underway, the country’s economy faces new hurdles.

Investors have come to Somalia looking to cash in on the rebuilding process and abundant natural resources in areas such as agriculture and livestock, fisheries, and oil and gas. More innovative fields, such as mobile technology, have also been taking off, although they still only impact a minority of the population (22.5 out of every 100 inhabitants have a mobile phone subscription in Somalia, significantly lower than the developing world average of 84.3).

It is hoped these developments will lay the groundwork for broader economic growth. The second pillar of the president’s Six Pillar Strategy to stabilize the country is economic recovery. In line with this, Somalia aims to build a transparent, formalized, globally competitive economy that collects tax revenues.

But the government faces a number of challenges as it works towards these goals. IRIN looks at some of the most pressing problems.

Certification

Somalia’s government does not have the capacity to participate in certification schemes or to provide authenticity documentation that would enable businesses to sell goods globally. Firms instead have to find unconventional, and often costly, workarounds.

Although sesame seeds are grown in large quantities in Somalia – in 2012 the country was the 12th largest producer in the world – exporting them is a challenge.

“Just before the famine, there was a very good season of sesame, and I remember talking with a businessman who explained he was forced to take the sesame in Somalia and nationalize it in some way in Indonesia to sell it to Germany,” said Luca Alinovi, regional director of the Food and Agricultural Organization (FAO) at a recent event in Nairobi on Somalia’s foreign direct investment prospects. “This is quite an inefficient way to deal with it – but the only way if you’re not able to have a proper certificatory regime, a proper EPA [Economic Partnership Agreement] between Somalia and Europe.”

Alinovi notes that similar mechanisms are used when it comes to exporting many fishery products.

“This means that the government of Somalia loses money,” he said. “We need to have much stronger capacity to support the country and the people to have those regulatory frameworks which help the people do business properly.”

Trade difficulties

Somalia is not a member of any regional economic blocs, and it has few formal trade deals with other nations. The US and the European Union currently have no trade agreements with Somalia, and the country is not a member of the World Trade Organization, compounding the difficulties local firms face when competing regionally and internationally.

In 2012, Somalia exported goods worth US$693 million (509 million euros), according to data from the European Commission’s Directorate-General for Trade. While this represents a significant increase – in 2008, exports were less than half that number – the country still runs a large trade deficit. In 2012, its imports were valued at $1,818 billion (1,335 million euros).

It also exports less than other countries: Somalia is the 171st largest exporter in the world, and it has the fourth lowest GDP per capita, according to the CIA World Factbook.

Somalia’s biggest export market is to the United Arab Emirates (UAE), which takes in more than half its total exports. Just three countries (UAE, Yemen and Oman) account for 82.5 percent of all exports, predominantly in livestock, out of Somalia.

Regional partners often impose strict restrictions on Somalia, mainly out of security fears. “Borders sometimes are closed,” said Hassan Noor, CEO of Hanvard Africa, a consultant firm that focuses on East Africa. “People fly from Mogadishu direct to Istanbul. They can fly to Dubai. But they can’t fly to the next-door neighbor.” (There are no direct flights between Mogadishu and Ethiopia, for example, although there are to Djibouti, Kampala and Nairobi.)

Photo: Ahmad Mahmoud/IRIN

A woman buys meat from a local butchery in Mogadishu

As a result, businesses have to go to great lengths to trade with other countries. “Businesses register in Dubai in order to get access to finance and the like,” said Nick Haslam of advisory firm Adam Smith International.

This also means that businesses are less transparent. “Who is behind certain business sectors? It’s like an onion. Every time you peel some layer, you discover other friends behind it without necessarily being very officially present,” added Alinovi.

Currency reform

Restoring the credibility of Somalia’s currency will also be crucial to economic development. The Central Bank has identified “the introduction of new and unified currency” for Somalia as one of its strategic goals for the next five years.

“There were (and still are) several versions of the same currency (Shilling) in circulation concurrently, and most of them are fake currencies,” the bank noted in its Strategic Plan 2013-2018.

Since the early 1990s, no bank notes have been printed officially. “The collapsing of the Central Bank and the banking system left a vacuum for monetary and regulatory control and totally shattered the country’s payment system,” noted the report. This led to “currency substitution and the growth of the parallel currency market,” with warlords and militias issuing their own currency.

This means that there is a large black market for currency. Officially, Somalia’s shilling trades at around 1,200 to the US dollar, but it is about 15 times that rate on the black market.

In mid-2013, the International Monetary Fund resumed relations with Somalia after 22 years. For now, it will not provide loans to the country, but it pledged to provide technical assistance and highlighted currency reform as a major priority.

But the Central Bank is still struggling. Central Bank Governor Yussur Abrar resigned in November after just seven weeks, citing claims of corruption and government interference, and while an interim leader has been appointed, the Bank has yet to find a full-time replacement.

“There’s a lack of capacity, and also there’s huge corruption,” said Shirwa Jama, the International Development Law Organization’s Somalia country representative. But he noted that “all these things can really be addressed if the government has the commitment to improve rule of law, to capacitate and work with international partners.”

Managing oil deals and revenue

Nowhere are the problems and potential of the Somali economy better exemplified than in the oil and gas industry.

There are massive reserves, and even before the collapse of government, large firms were exploring the possibility of mining oil and gas. But lack of legislation and political wrangling at regional and national levels impede development in this sector.

“There is currently growing hostility between the Federal Government of Somalia and regional administrations that have signed oil deals independently of the government,” a UN Monitoring group on Somalia and Eritrea noted in a July letter to the Security Council. Divergence between the 2008 petroleum law – which is invoked by Federal Government petroleum officials – and Somalia’s Constitution is exacerbating this hostility.”

Some large firms, including BP, Chevron and ConocoPhillips still hold exploration rights dating back to before the civil war and have had discussions with the central government. In August, Soma Oil and Gas, a British firm founded earlier in 2013, signed an agreement with Mogadishu to begin exploring oil – much to the chagrin of the Puntland and Somaliland governments, which have separate deals with other firms.

It remains unclear how old contracts will be resolved and who will have the ultimate right to negotiate new deals. “Oil and gas has huge potential, but the current uncertainty surrounding federal and regional states and the lack of agreement over resource sharing and taxation means that it will be very difficult for that sector to take off until those issues are resolved,” noted Haslam.

Social engagement

There is also a need to ensure that economic growth benefits the people, especially as foreign direct investment grows.

Following the collapse of the Siyad Barre regime in 1991, the private sector stepped in to provide most basic goods and services, and has actually performed relatively well throughout this period despite rampant insecurity and lack of infrastructure.

“Everything is being provided by the private sector – water, electricity, telecommunications, everything,” said Hanvard Africa’s Noor. “In the absence of a government, in the absence of a regulatory framework, with nobody else coming to provide those services, they had to do what they could do.”

“Businesses have created their own informal, enabling environment,” said Haslam. “People form strong networks to overcome [poor] access to finance, for example, relying on customary or Sharia law to overcome disputes, and local knowledge is paramount.”

But while a system of customary law and close clan ties worked to support society (through mechanisms such as Zakat – giving a proportion of one’s wealth to charity), some of these networks are now being eroded, argues Alinovi. “Because of a set of changing mechanisms in the inter-clan relations in the last 20 years, a lot of the obligation that the businessmen used to have to the society, for the social fabric surrounding [them], has begun disappearing,” he said. “The businesses in Somalia are becoming less relevant for the society.”

With international investment, there are fears that the influx of foreign money will give rise to greater cronyism and corruption. “Risk is for the investor, but also risk is for the local people,” said Noor. “We don’t want to become like Niger Delta.”

Source: IRIN

[This report does not necessarily reflect the views of the United Nations]