Rebuilding Somalia's Infrastructure Through Public-Private Partnerships

SOMALI BUSINESS
REVIEW
Special Edition 2013
Somali Business Review Special Edition

1
2
Chief Editor
Contents
Ibrahim Mohamud Hamud
Editorial 04
Operation Editors Infrastructure Development and State

Building Using the Public Private
Ahmed Salat Ahmed Partnership 05
Why Somali Women Enter Into

Mohamed Yusuf Abdulle 08
Entrepreneurship?
Ka Sakeynta Hawlaha Ganacsiga Iyo

Production Manager Shirkadaha 11
Electronics Business Flourishing in

Abdinor Dahir Siyad
Mogadishu: Implications and Trends 17
Growth Challenges Facing Small

Editorial Board Businesses in Mogadishu 19
Abdirahman Mohamed Anas

Somalia, Emerging International
Bashir Abdisamad Hareed Business Market 22
Amino Omar Mohamud Private Air Transport and Customer

Care in Somalia 24
Technology Transfer: What Everybody

Cameraman & Should Know 26
Data Collector Contribution of Turkish Investment to

Peace-building Process in Somalia 29
Mohamed Hassan (Lafole)
The Exercise of Third Party Logistics
in Somalia 31
Design & Production
Graphic Lineups Limited Does Small Business Need
Consulting? 33
P.O. Box. 49912-00100
Nairobi-Kenya.
Tel: 020 2244284
Email: info@graphic.co.ke
Somali Business Review Special Edition 2013

3
Editorial
I
t has been more things in business SBR team will take
than a year that the has changed including into consideration
last edition of SBR both ups and downs. immediately.
was issued. After an The new opportunities
unexpected absence of to be grabbed or the The teams philosophy
one year, SBR is here arising challenges is that The believer is
again to share with to be eliminated/ a mirror for his brother
you very interesting managed and the way believer. Continues
articles enlightening we do business are a improvement is our
technology, business lot better than ever. target which we
and development. believe is possible with
To see/understand a collective ideas and
Our respected what it looks like, vision.
readers, we apologize your experiences,
the time that our insights and invaluable
connection in this contributions are
beautiful knowledge- extremely important
sharing endeavor has for both academicians
stopped. and business
practitioners. Lets
THE BELIEVER IS
A new commitment utilize the venue that
A MIRROR FOR
starts now and we SBR provides to all HIS BROTHER
connect each other of us by sending your BELIEVER
again. We are sure articles through an
that the upcoming e-mail or hand delivery
issues of SBR will be to Research and
more exciting and Publications Office at
entertaining. the main camps.
Since the last time Finally, comments and

we have published constructive criticism
the last edition, many are most welcome and

4
Infrastructure Development and
State Building Using the Public
Private Partnership
By Abdirahman Mohamed Anas
APPROACH: Somali Post-Conflict Economic Recovery
Introduction including electricity, water, discuss these issues.
A
fter its infrastructure, health and Emerging History and
independence day education. Definition of Public
(the year 1960 Private Partnership
- 1969), Somalia had However, all services and Historically, Public Private
experienced nine years of facilities owned by private Partnerships have been
democratic government institutions were not used over three decades
regime with free market destroyed and collapsed in the developed countries.
system. In this period and mostly not looted Governments introduced
foreign companies unlike the public services. this PPP approach for
dominated the countrys This might be implied financing purposes such as
economy in general that private sector and social and infrastructure
and public services in community participation projects (e.g., hospitals,
particular. However, in public service was schools, roads, prisons,
military regime changed very important for the water and electricity)
the countrys systems and sustainability and feeling (Wilson et al., 2010). It
politics in the period 1969 belongingness of the is widely considered as
1990, which resulted government facilities and a key tool of public policy
that all main businesses services. This waked up development in the last
and sectors to be civil and private businesses three decades (Hurst, et
nationalized and governed to fill the gap to some al., 2004). Public entities
by the government extent of public services. tend to realize the greater
administrators. This Although, currently the role of private involvement
paper is not looking at the country elected new in public services (Argiolas
perspective of whether government (which is not et al., 2009).
this economic system was transitional) it is time
effective or vise verse. to rebuild and re-store PPP can be defined as
The issue is that whether all services and facilities a long term contract
the citizens had the using public private between public and
feeling that they belong partnership approach. private institutions where
their public services The purpose of this paper the private takes the
e.g. banks, facilities and is to explain the role of risk of providing output
other government bases Public Private Partnership services in a agreed
and offices. As resulted, (PPP) in infrastructure standards (Wilson et
after the collapse of the development and state al., 2010). Stages of
government in 1990s the building of Somali post- PPP contracts involve
country had experienced conflict economic recovery design, procurement,
collapse of all government using literature review. operation of a facility,
services and facilities Thus, next sections and/or maintenance. To

5
be more objective, PPP involvement in development Conditions before
has the following special projects and public Implementing PPPs
characteristics: long services and facilities Wilson et al. (2010)
term service provision is of prime importance assert that PPP
20 to 30 years; transfer at the perspective of projects should take into
of risk to the private sustainability issues account issues such as
sector; contracts drawn (Argiolas, et al., 2009). social, environmental
up between legal entities Jamali (2007) as cited in and sustainability
and public authorities Miller (2000) and Saves purposes which are
(Roumboutsos and Chiara, (2000) lists some benefits directed by government
2010). The literature of PPP. The fist one is policies, regulations and
presents different that there is a desire to contractual provisions.
approaches of PPPs. Aziz improve the performance These three objectives
(2007) discussed two of the public sector together build strong
widely used kinds of PPPs while avoiding fully fledge foundation for other
such as a financed-based privatization. The second main conditions for PPPs
approach that aims to use one is that PPPs help such as commitment
private financing to satisfy reducing and stabilizing between public and private
infrastructure needs, and costs of providing services. parties, transparency
a service-based approach Finally PPPs may increase and responsibility, and
that to optimize the service quality levels. accountability. The result
time and cost efficiency The private sector expects could be enhanced service
in service delivery. Both to have investment quality, value for money,
these two approaches opportunities through satisfied publics, less
could be considered corruption cases, good
complementing each other For the case of Somalia, governance etc.
to provide service quality currently there is one
services for the society. project which could be Wettenhall (2007) argues
considered as a form of that any PPP project
For the case of Somalia, PPP should have the following
currently there is one requirements to be a
project which could be PPPs which may result genuine partnership:
considered as a form significant profitability active collaboration,
of PPP. The project is a and increased business horizontal non-hierarchical
mixed financed-based interests (Jamali, 2007; relationships between
and service-based PPP Hurst and Reevas, 2004; the parties, consensual
approach which is run by an Wilson et al., 2010; decision making, no A Publication of SIMAD UNIVERSITY
international organization Roumboutsos and Chiara, single superior capable
(SKA). This organization 2010). Furthermore, of invoking closure, an
invests and manages PPPs benefits include organizational structure
Mogadishu International that Private sectors such as a partnership
Airport. Opponents of this involvement could result board or forum, an ability
project argue that local delivering innovative, to achieve synergies
and Diasporas businesses efficient and quality between involved persons
were not given that service to the community and organizations, and
opportunity. at the perspective of value use of respect and trust
for money outcomes. as major forms of social
Benefits of PPPs capital.
Promoters of PPPs argue
that active community

6
The Role of PPP in all projects (Community policies and regulations.
in Infrastructure participation) (Jones et al., These regulations are
Development and State 2003). Overall, the most supposed to govern all
Building important contribution PPPs for rebuilding the
Principally, it is widely that companies can infrastructure and state
agreed that post- make to peace-building building. Future research
conflict countries need is to concentrate on the is required to provide
active, equitable, and responsible fulfillment of further study in PPPs
profitable private sector their core commercial role in rebuilding the
involvement if they are activities, thus increasing infrastructure and state
to recover and restore wealth and creating the building.
from collapse or conflict economic conditions for
and from post-conflict post-conflict recovery.
aid-dependency (Bray,
2007). Private sector Conclusion and
Governments are
development may provide Recommendations
required to set
increased employment The objective of this paper
strong foundations
opportunities, less time to is to review the role of
for attracting private
rebuild the public service, public private partnership
sector to involve
provides opportunity for approach in re-building
playing active role in
the government to lessen infrastructure and state
budget burdens for public building of Somali post
building public services
services and goods, conflict economic recovery.
and goods. This may
sustains livelihoods, Lessons leaned from the decrease countrys
serves to reinforce the last two decades (1990s), dependence on foreign
economic foundations of the new government aid. This foundation is
peace, feeling ownership, elected should introduce supported by setting
partnership governance PPP approach to re- fair policies and
model and growth in build the public services regulations motivating
real per capita GDP. The and goods, where the PPP. As a result,
principle of public-private community locals and multiple stakeholders
partnership is easy to Diasporas are involved in will involve in all
articulate but harder to all government projects. projects (Community
practice. These benefits These involvements may participation) ( Jones
are not for granted. result feeling ownership, et al., 2003). Overall,
sustainable, peace the most important
Governments are required building, employment contribution that
to set strong foundations opportunities, increased companies can make
for attracting private quality of life, and forms to peace-building
sector to involve playing partnership governance is to concentrate
active role in building model. on the responsible
public services and This paper may have fulfillment of their core
goods. This may decrease policy implications in commercial activities,
countrys dependence which the government thus increasing wealth
on foreign aid. This is required to prepare and creating the
foundation is supported strong foundations for economic conditions
by setting fair policies and attracting partnerships for post-conflict
regulations motivating with the locals and recovery.
PPP. As a result, multiple Diasporas. This will come
stakeholders will involve in a form of setting faire

7
Why Somali Women Enter Into
By Ali Yasin
Entrepreneurship?
1. Introduction are one of the fastest growing of men as well as of women.
Somali Women owned entrepreneurial populations
businesses are highly in the world. They make Women traditionally have
increasing in the economies significant contributions to had relative autonomy
of almost all regions in innovation, employment and over household decisions
the country. The hidden wealth creation in all economies about child rearing and
entrepreneurial potentials of (Brush et al., 2006). Despite other womanly duties.
women have gradually been the growing importance of Occasionally women would
changing with the growing women entrepreneurs, they make their views known to the
sensitivity to the role and are understudied, and the men in their lives on important
economic status in the society. paucity of research on the issues outside of the domestic
Death or unemployment of phenomenon of womens sphere. Men, on the other
husbands and fathers, the entrepreneurship is well hand, were expected to act
need to contribute to the documented (de Bruin et al., as the public economic and
family income, to take up an 2006, 2007; Baker et al., political face of the household,
active role in the society, 1997). The major objective of serving as breadwinner
need for independence and the article is to analyze the and representative to clan
adaptability in business are factors that motivate Somali decision-making structures
the main reasons for women women entrepreneurs to (Timmons, 2004).
to emerge into business enter in to entrepreneurship.
ventures. 3. Women: Economic
2. Gender Roles In Somalia Contribution in
Gender perspective within Talo naaged reer kuma tanaado Prewar Somalia
Entrepreneurship study is (No family will prosper if it Womens economic standing
not a new topic and plentiful relies on womens decisions) and responsibilities in prewar
academic publications about as these quotations imply, Somalia varied by location,
feminism research have been Womens experiences in pre- Women who lived in urban
published in recent years. war Somalia were varied. Not settings might likely have
This matches the trend that surprisingly, women in urban had husbands who worked in
the society has drawn more areas led lives quite different industry or government and
attention in gender equality, from those who lived in rural acted as sole breadwinners for
which to larger extent areas, and women in pastoral the family. These women would
helps women eliminate their settings had very different be tasked with the activities
subordinate social status to responsibilities from women in of running the household and
men. Undoubtedly, its the agricultural households. Nur bearing and raising children.
rising consciousness of gender (2002) found that stereotypes In pastoral families, women
equality that lets people put and perceptions of what are shared in some duties outside
more attention on female role considered womens naturally the household, including the
in entrepreneurship. endowed qualities-particularly care and feeding of animals,
lower intelligence than men selling of milk, and in some
A women entrepreneur is contributed to the exclusion cases herding of livestock.
one who owns and runs of women from social Women in agricultural
commercial enterprise economic, and political power communities also engaged
independently, often at structures. In this region, He in activities outside the
a personal financial risk. found these perceptions to be traditional household duties,
Women-owned businesses firmly ingrained in the minds assisting in the cultivation of

8
fields and harvesting of crops. children, while the man
Womens work, in the sense 4. THE IMPACT OF CIVIL protects and provides for the
of maintaining the household WAR ON SOMALI WOMEN family and acts as its decision
and bearing and rearing The prolonged civil war maker and representative
children, has historically and insecurity following in the community. However,
been recognized as essential the collapse of the Somali the lengthy civil conflict has
to Somali society. Some state in 1991 have caused eroded these traditional
women have been able as immense human suffering roles, forcing people to seek
well to secure and maintain and material losses across the protection of their clans.
control over independent the south-central regions, Men and boys were forced
economic resources through leaving physical and emotional to fight or leave their home
inheritance. By tradition, scars on all aspects of Somali areas to seek work to provide
any livestock, jewelry, or society. In addition to death income for their families;
other property inherited by and destruction, the violent some, faced with an inability
a female from her father or conflict has resulted in to protect or support their
older relatives can never be widespread displacement of families, even abandon them.
acquired by a husband upon people both within and beyond The serious stresses placed
marriage. This tradition has the countrys borders. Family upon the family system
afforded Somali women some relationships have been during this period led to an
access to property outside of disrupted, traditional social increased number of divorces,
the clan structure. Although values eroded, and roles and women-headed households,
some women effectively responsibilities within the and abandoned children (a
maintained property, womens family have undergone major phenomenon that was rare
contributions to the economic fundamental changes (CRD/ in Somali society prior to the
livelihood of the family and clan WSP, 2004), collapse of the state).
outside of household duties The well-documented
were largely discounted In Somali society, women emergence of women as the
and ignored, and they did are traditionally seen as the primary economic providers
not give women any power backbone of the family, the in the post-war period is not
within kinship decision-making primary caregiver looking limited to women-headed
structures. after the household and households. Many married

9
women have also become level, there has been an textiles, restaurants, fruit
the main source of income increased level of respect and vegetables, household
for their households due to for the important role utensils and groceries. They
high unemployment among women are playing in meeting were asked what motivated
men. Generally, men are the economic burdens of them to start and run their
unwilling or unable to engage supporting the family. This business.
in low income opportunities, is an area which women will
such as petty trade in local need to capitalize on in the From this study, it can be
markets. Male unemployment future if they are to increase concluded that occupational
is also compounded by the their voice in decision making choice of women is influenced
widespread chewing of khat, a (Timmons, 2004). by their family needs, a higher
mildly intoxicating plant. need for economic contribution
Instead, womens increased to family and achievement,
A variety of studies have involvement in trade appears unemployed husband, death
found that, across Somalia, to be a reflection of economic of the traditional family bread
women now run 80% of petty necessity. In most cases, winners, nuclear families and
trade (micro business) and women lack investment polygamy.
small businesses, as well as capital, own few assets, and
running their own households. earn a subsistence income to
It is sometimes argued support their families through
that this dramatic socio- work in harsh conditions and
A variety of
economic shift demonstrates an insecure environment.
an enhanced position for In south-central Somalia,
studies have
women although there is there are relatively few
little evidence that this has women owners of wholesale
found that,
translated into changes either businesses or major
in their economic status or corporations, and very few
across Somalia,
their decision-making powers major Somali companies have
outside the family (CRD, a woman on their boards.
women now run
2007).
5. Conclusion
80% of petty
In 1997 ACORD, a Women are becoming
nongovernmental organization entrepreneurs due to several
trade (micro
(NGO) conducted a study in factors which may be grouped
Lower Shabelle that found under pull factors and push
business)
that women in the region were factors. Push factors refer
working 30 percent more to factors that push women
and small
than men. By 2001 ACORD to commence the business
found that an estimated 70 enterprises with liking to
businesses, as
to 80 percent of the regions start a business, driven by
households were dependent financial need due to family
well as running
on womens earnings for the circumstances.
familys livelihood. Somali
their own
women faced with either This study is a survey based
the loss of a husband or a study which was conducted
households
husband unable to find work at Bakara market on
found means of earning a December 2011. Five Somali
living through petty trade women entrepreneurs were
and cooperatives established selected from the difference
with other women. According businesses running at
to Powers-Stevens, at the the market, among them
household and sub-clan there were women selling

10
Ka Sakeynta Hawlaha Ganacsiga
Iyo Shirkadaha
By Bashir Abidsamad Hared
Ganacsiga waxaa lagu (cooporatives) iyo shirkad lacagta ganacsiga ku jirta

qeexaa hanti kasta oo saamiley (corporation). ee shaqeynaysa (working
guurto ah, oo ku jirta shaqo 2. Warshadaha farsameeya capital). Qaybaha kala duwan
ganacsi si looga macaasho. alaabta cayriin (raw ee hantida guurtada ah
Waxaana ka mid ah ganacsi material), kana sameeya waxaa ka mid ah: 1) Lacagta
kasta oo lacag caddaan ah badeeco diyaarsan caddaanka ah, 2) Lacagta
lagu beddesho ama badeeco (finished goods), bankiga taalla, 3) Jeegaga
la isku beddesho (nidaamka dabadeedna ka iibiya ama kaararka sarifmi kara,
is-weydaarsiga). Haddaba macaamiisha si looga 4) Badeecada bakhaarka
dulucda qeexitaankan macaasho. taalla, iyo 5) Amaahda
waxaan ka dheehanaynaa 3. Dilaalnimada ama ama deynta ka maqan
in hantida ganacsiga ku wakiilnimada (brokerage); ganacsadaha (sakeeyaha).
jirta tahay hanti guurto ah, waana kuwa ka Sidoo kale deynka laga
waayo hantida ma guurtada ganacsada soo dejinta jaro hantida guurtada ah
ah lagama sakeeyo laf- ama dhoofinta badeeco waxaa ka mid ah: 1) deyn
ahaanteeda ee waxaa laga diyaarsan, ama dadka iyo amaah bixin mudan (waa
sakeeyaa dakhliga laga fududeeya hawlaha deynka ama amaahda laga
helo. Sidoo kale waa inay ganacsiga. sugayo ganacsadaha inuu
hantidu ku jirtaa ganacsi. 4. Adeegga fududeynta ku bixiyo wax ka yar sanad),
Si ay hantidu u yeelato lacagaha, sida hawlaha iyo 2) Kharash bixin mudan
astaanta hanti kobceysa xawaaladaha iyo (waa kharash ay ahayd in
waa in lagu shaqeeyaa, sariflayaashu ka la bixiyo, laakiin aan wali la
kadibna macaash laga ganacsadaan. bixinin).
helaa. Hawlaha ganacsiga Tusaale: dabayaaqada
Hal-beegga qiimeynta
waxaa ka mid noqon kara sannadku markuu ahaa
sakada
samaynta badeeco ama 30/12/1424 Hijriyada, ayay
Markasta oo la xisaabinayo
ka ganacsiga badeeco shirkad ganacsi oo gaar loo
sakada waxaa lagama
diyaarsan, warshadeynta, leeyahay soo bandhigtay
maarmaan ah in la
dhoofinta iyo soo-dejinta warbixinta hoos ku xusan
adeegsado hal-beeg si
badeecadaha kala duwan, oo lagu faahfaahiyay
joogto ah wax loogu cabbiro.
iwm. hantida shirkaddu leedahay
Hantida sakadu ku waajibtay
Noocyada hawlaha waa hantida guurtada ah iyo qaanta lagu leeyahay.
ganacsiga: Ganacsigu oo laga jaray qaanta ama Maamulka shirkaddu waxay
wuxuu yeelan karaa qaabab deynka muddada gaaban u xilsaareen khabiir ku xeel
fara badan oo kala duwan, lagu bixin doono. Marka dheer sakada inuu qiimeeyo
waxaase ugu muhiimsan: deynka laga jaro hantida hantida iyo qaanta, kadibna
1. Hawlaha iibinta badeeco guurtada wixii soo hara ama uu xisaabiyo sakada lagu
ama adeeg, si dib looga haraaga ayaa lagu qiimeyn leeyahay shirkadda.
macaasho, waxaana inay dhan tahay nisaabkii
inta badan sameeya laga sakeyn lahaa (qiimaha A. Hantida shirkaddu
shirkadaha, nooc 85 garaam oo dahab leedahay:
kastaba ha lahaadeene ah). Farqiga u dhexeeya Hanti maguurto ah
sida; ganacsade hantida guurtada ah iyo Dhul banaan
(proprietorship), shirkad deynka qofka lagu leeyahay $300,000
wadaag (partnership), waxaa lagu magacaabaa Dhismooyin
shirkad iskaashato Raasumaalka Kobcaaya ama $392,000
11
Wadarta hantida maguurtada ah $692,000
Hanti guurto ah
Lacag caddaan ah $ 30,000
Deyn maqan $ 30,000
Badeeco bakhaarka taalla $ 60,000
Hormaris kiro guri $ 8,000
Wadarta hantida guurtada ah $128,000
Wadarta Hantida shirkadda oo dhan $820,000
B. Qaanta shirkadda lagu leeyahay:
Amaah bixin mudan (muddo dheer) $225,000
Deyn bixin mudan (muddo gaaban) $ 30,000
Kharash bixin mudan1 $ 2,500
Wadarta qaanta shirkadda lagu leeyahay ($257,500)

C. Raasumaalka shirkadda (A-B) $562,000
Dhanka kale, khabiirka sakadu markuu qiimeeyay hantida shirkadda u taalla waxaa u
caddaatay in badeecada ku xusan warbixinta ay suuqa ka joogto $92,000. Qiimahan
warbixinta lagu sheegay waa lafihii lagu soo gaday badeecada markii hore. Si looga
sakeeyo shirkadda, khabiirku wuxuu u xisaabiyay hantida shirkadda sida soo socota:
Xalka tusaalaha ka sakeynta shirkadda:

A. Hantida guurtada ah:
Lacag caddaan ah $ 30,000
Deyn maqan $ 30,000
Badeeco $ 60,000
Hormaris kiro $ 8,000
Laga jaray:
B. Qaanta muddada gaaban:

Deyn bixin mudan $ 30,000
Kharash bixin mudan $ 2,500
Wadarta qaanta muddada gaaban ($32,500)
C. Raasumaalka kobcaaya (A-B) $95,500

Lagu daray:
Farqiga qiimaha suuqa badeecada $32,000
Wadarta hantida laga sakeynayo $127,500
Sakada shirkadda laga rabo waa ($127,500 X 2.5%) ($3,175)
Faalleynta xalka
1. Deynta maqan waa laga sakeynayaa, sababtoo ah waa hanti shirkaddu leedahay oo
la rajaynayo in la soo celiyo mustaqbalka, waa haddaan shaki laga qabin helitaanka
deyntaas.
2. Kirada guriga ee la hormariyay waa laga sakeynayaa, sababtoo ah waa hanti shirkaddu
tirsanayso oo ay intifaacsan doonto mustaqbalka, waxayna ka mid-tahay hantida
shirkadda ilaa laga dheefsado dhammaanteed.
3. Badeecada bakhaarka taalla waxay ku diiwaan gashantahay lafaha lagu soo gaday
oo ah $60,000, waxayse suuqa ka joogtaa $92,000, saas darteed ayaa inagoo
1 Kharash bixin mudan waa kharashaadka ay ahayd in la bixiyo mudadii la soo dhaafay, laakiin aan wali laa bixinin.

12
dhawrayna xeerka dunida laga adeegsado. $50,000. Deynta ka
fiqhiga ah ee sheegaya Inta badan natiijada maqan Hodan waa
in marka hantida ganacsiga lama ogaan $5,000, oo $2,000
laga sakeynayo lagu karo ilaa uu sannadku oo deyntaas ka mid ah
qiimeeyo sicirka ka dhammaado, waana shaki ku jiro in la heli
ay maalintaas marka dawladdu doono, waayo waxaa
badeecadu suuqa goaansato inay musalafay qaameysanihii
ka joogto, ayaan ku canshuurto ganacsiga denyta lagu lahaa.
qiimayneynaa qiimaha ama milkiiluhu Haddaba markii khabiir
suuqa ee ah $92,000 goaansado inuu sakada ku xeeldheer sakada uu
si loo xisaabiyo iska bixiyo. Markaas hubiyay macluumaadka
sakada hantida. ayaa loo soo diraa ganacsiga Hodan,
4. Deynta lagu leeyahay (meelaha dawladu ka waxaa la ogaaday in
shirkadda waa in jirto) xisaabiye soo tira- macaashkeeda sannadku
la bixiyaa inta aan kooba hantida wareega dhan yahay $5,250.
sakada la bixinin. ganacsiga ku jirtay Haddaba, inagoo
Sida tusaalahan sannadka gudihiisa ee tixraaceyna xogtaas kor
ku cadna qaanta ganacsaduhu haysto. ku xusan aan xisaabinno
mudada gaaban oo Ganacsatada noocaan sakada sharci ahaan
ah $32,500 ayaa ah marka ay bixinayaan lagu leeyahay Hodan.
laga jaray wadarta sakada inta badan Inta badan ma
hantida. uma bixiyaan si sax ah, fududa in ganacsiga
5. Sida xalka ku cad sababtoo ah marka (ganacsatada) yaryarka
lagama sakeynin horeba malaha diiwaan ah ay sameystaan
dhulka, iyo habaysan (recording diiwaan xisaabeed oo
dhismooyinka midna, system) ama qoraal habeysan oo la tixraaco.
waayo waa hanti xisaabeed oo la hubo oo Saas awgeed ayay dalal
maguurto ah. Sidoo fududeyn kara tirakoobka badani waxay jideeyeen
kale waxaan laga hantida ganacsadaha. nidaam u gaar ah
sakeynaynin amaahda Sidoo kale, iyana waxaa ganacsiga yaryarka ah oo
lagu magacaabo yar dadka takhasuska lagu qiimeeyo sakada iyo
Amaah bixin mudan u leh qiimaynta hantida canshuurta ganacsiga
sababtoo ah waa iyo ka sakeynteeda oo noocaan ah. Tusaale
qaan lagu bixin doono khibrad ka geysan kara ahaan dalka Sucuudigu
mudo dheer. xisaabin huban. Haddaba wuxuu leeyahay nidaamka
si ay ganacsatada lagu magacaabo taqdiir
qiimeynta sakada doonaya inay iska gudaan juzaafi oo ah in la
ganacsiga aan lahayn xuquuqda Eebbe swt maleeyo ama la qiyaaso
diiwaan habaysan waa qofkii lagu yeeshee- qadarka macaashka
Ganacsiga iyo waxay adeegsan karaan, ah ee ganacsigani soo
ganacsatada yaryarka oo u fududayn doona xareeyay sannadka
ah (Sida: dukaanada, bixinta sakada habka soo dhammaaday. Haddiise
c a r w o o y i n k a , socda. wax uun qoraal ah laga
s u p p e r m a a r ke t y a d a , helo ganacsadaha way ka
Tusaale: Hodan waxay
f a r m a s h i y a d a , fududahay in la qiimeeyo
ka ganacsataa dharka,
makhaayadaha iyo ama la qiyaaso qadarka
isla markaasna ma laha
bacadlayaasha) inta sakada ah ee lagu
diiwaan habeysan oo la
badan malaha diiwaan- leeyahay ganacsadaha.
raaco, hase yeeshee,
xisaabeed oo u habaysan Haddaba aan xisaabinno
waxay soo gudbisay
qaababka waafaqsan sakada sharci ahaan
in bilowga sannadka
nidaamyada maaliga ah ee lagu leeyahay ganacsato
raasumaalkeedu ahaa
Hodan.

13
Xalka tusaalaha
Raasumaalka bilowga sannadka $50,000
Lagu daray: macaaashka sannadka $5,250
Lagu daray: Deynta ka maqan ee la hubo ($5,000-$2,000) $3,000
Wadarta hantida laga sakeynayo $58,250
Saan qiyaaseyno hantidani way dhan tahay nisaabkii loo baahnaa, sakada laga doonayana
waa $1,456.25 ($58,250 0.025), waase in laga jaraa kharashka hadduu jiro.
Faalleynta xalka
1. Sida ku cad xalka tusaalaha raasumaalka bilowga sannadka ayaa sal looga dhigay
xisaabinta sakada. Kadibna waxaa lagu darey deynka maqan ee la hubo ($3,000 ayaa
la hubaa) iyo macaashka sannadka ($5,250).
2. Deynta aan la hubin ($2,000, deyn baday) lagama sakeynayo, waayo waxay ku
dhowdahay in loo aqoonsado khasaare. Khasaarena lagama sakeeyo. Haddiise qofkii
lagu lahaa deynka uu mustaqbalka awoodo inuu iska bixiyo, markii laga helo ayaa laga
bixin doonaa sakada hal sano, xattaa hadduu denykaasu maqnaa sanooyin badan.
3. Habka aan ku xisaabinay sakada waa kan ay adeegsato wakaaladda Sucuudigu ee
maamusha sakada iyo canshuuraha.
Tusaale: Ganacsade Maxamuud wuxuu ka ganacsadaa noocyo kala duwan oo badeeco ah

sida; dhar, cunto iyo cabitaan, mana laha diiwaan xisaabeed oo habeysan, hase ahaatee
markii la baaray ganacsigiisa wuxuu soo gudbiyay xogta soo socota dabayaaqada
sannadka 1425 Hijriyada.
A. Hantida Maxamuud
Makiinado $12,000
Iskafaallo iyo miisas $ 7,000
Badeecada bakhaarka taalla $25,000
Deyn maqan $30,000
Lacag caddaan ah - Khasnada $13,000
Lacag caddaan ah - Bankiga $12,000
Wadarta hantida $99,000
B. Qaanta lagu leeyahay Maxamuud

Deyn bixin mudan $ 8,500
Amaah bixin mudan $ 5,000
Ganaax dowladda hoose $11,200
Maal-gashi dad kale (lagu darsaday) $10,000
Wadarta qaanta $34,700
Xog dheeraad ah:

1. Badeecada bakhaarka taalla qiimaheedu wuxuu suuqa ka joogaa $38,000, waxaana
ka mid ah badeeco qiimaheedu dhan yahay $7,000 oo la gaday, hase yeeshee qofkii
iibsaday uusan wali bakhaarka kala bixin.
2. Waxaa jirta badeeco ganacsaduhu leeyahay oo jidka ku soo jirta, oon wali soo gaarin
xarumaha ganacsadaha (waxay taallaa Dubai), qiimaheeduna (sida ay ka joogto
Dubai) waa $12,000, hase ahaatee Muqdishu waxay ka joogtaa $13,000. Sidoo kale
ganacsaduhu wuxuu wakiil ahaan badeeco ugu hayaa ganacsade kale oo ajnabi ah,
badeecadaas qiimaheedu waa $2,000.

14
3. Waxaa khasaarey qof uu ganacsaduhu deyn ku lahaa. Deynkaas oo dhan $1,500,
maxkamaduna waxay faafisay in qofkaas musalafay uusan iska bixin karin deynta
Maxamuud ku leeyahay.
4. Waxaa caddaatay in lacag dhan $2,000 oo kiro guri ah, lagu leeyahay ganacsade
Maxamuud.
5. Waxaa jirta lacag dhan $1,800 oo hormaris ahaan ganacsade Maxamuud u bixiyay,
waana kiro xafiis (lix bilood oo hormaris ah).
6. Mushaar dhan $3,200 oo khuseeya sannadka dhammaaday ayaan wali la siinin
shaqaalihii mutaystay. Sidoo kale, waxaa jira ganaax ($11,200) ay dowlada hoose
dulsaartay Maxamuud sababtoo ah wuxuu la daahay canshuurtii sanadkii hore.
Dhanka kale, biilka sannadka ee qoyska Maxamuud waa $18,000 sannadkii oo dhan.
Haddaba, inagoo tixraaceyna xogtan kor ku xusan aan xisaabinno sakada ku waajibtay
sharci ahaan ganacsadahan.
Xalka tusaalaha: Intaynaan xisaabinin sakada ganacsadaha aan kala saarno hantidiisa
iyo hantida dadka kale, isla markaasna aan si hubaal ah u soo saarno hantida laga
sakeynayo.
1. Badeecada Maxamuud leeyahay

Badeecada bakhaarka taalla $38,000
Lagu daray: Badeecada jidka kusoo jirta (Dubai) $12,000
Wadarta badeecadda $50,000
Laga jaray: Badeecada la gaday een la rarin ($ 7,000)
Badeecada ammaanada ah ($ 2,000)
Wadarta badeecadda uusan Maxamuud lahayn ($ 9,000)
Badeecada ganacsade Maxamuud leeyahay $41,000
2. Xisaabinta deymaha Maxamuud ka maqan

Deynta maqan $30,000
Laga jaray: Deynta baday (la sugeynin) ($1,500)
Deynta la hubo ($28,500)
3. Xisaabinta qaanta bixinta mudan2

Qaan bixin mudan oo hore $8,500
Lagu daray: Kiro guri oo bixin mudan $2,000
Mushaar bixin mudan $3,200
Amaah bixin mudan $5,000
Ganaax dowladda hoose $11,200
Wadarta qaanta bixinta mudan $29,900
Haddaba maadaama aan soo kala saarnay hantida ganacsadaha iyo hantida dadka kale
leeyihiin aan soo saarno sakada laga doonayo ganacsade Maxamuud:
A. Hantida guurtada ah:
Badeeco $41,000
Deyn maqan $28,500
Lacag caddaan ah Khasnada $13,000
Lacag caddaan ah Bankiga $12,000
Maal-gashi shirkado kale $10,000
Hormaris kiro $ 1,800
Laga jaray:
2 Waa hanti kasta oo laga rabo ganacsadaha inuu bixiyo sida amaahda lagu leeyahay ganacsadaha.

15
B. Qaanta lagu leeyahay
Qaan bixin mudan oo hore $ 8,500
Kiro guri oo bixin mudan $ 2,000
Mushaar bixin mudan $ 3,200
Amaah bixin mudan $ 5,000
Ganaax dowladda hoose $ 11,200
Wadarta Qaanta bixinta mudan ($29,900)
C. Raasumaalka kobcaaya (A-B) $75,100

Laga jaray:
Biilka qoyska ($18,000)
Hantida sakadu ku waajibtay $57,100
Maadaama hantida Maxamuud ay ka badan tahay nisaabkii loo baahnaa waxaa

laga doonayaa sako dhan $1,427.50 ($57,100 x 2.5%).
Faalleynta xalka tusaalaha:

1. Kirada hormariska ah waa in laga sakeeyaa, waayo waa hanti ganacsaduhu
leeyahay oo uu intifaacsan doono mustaqbalka soo socda, ilaa ay ka
dhammaatana waa lagu dari hantida laga sakeynayo. Waxaanse laga
sakeynaynin haddii lacag hormaris ah lagu bixiyo xayaysiin, sida haddii
shirkadi bixiso lacag dhan $10,000 si loogu xayaysiiyo hawlaha shirkadda
shanta sano ee soo socota, laga sakeyni maayo, sababtoo ah waa kharash
la xiriira socodsiinta ganacsiga oon kobcaynin, waana in loo aqoonsado hanti
maguurto ah, waayo waxaa la xayaysiinayaa magaca shirkadda. Magaca iyo
sumcadda shirkadduna waxay ka mid yihiin hantida maguurtada ah.
2. Kirada iyo mushaarka lagu leeyahay ganacsadaha waxaa loo tix galinayaa
qaan ama deyn oo kale, saas awgeed waa laga jari hantida inteeda kale oo
laga sakeyn maayo.
3. Sida ka muuqata xalka tusaalaha waxaa la isugeeyay wadar wuxuu lahaa
milkiiluhu, meel kasta oo ay yaalaan sida badeecada jidka ku soo jirta oo lagu
daray hantida kale, waxaana lagu qiimeeyay, qiimaha meesha ay taallo oo
ah Dubai. Sidoo kale hantida uu wakiilnimada dad kale ugu hayo, laga sakeyn
maayo mana aha laba hantiyood oo la isku darsaday ee waa ammaano,
waxaana sakadeedu saarantahay amaanada qofka iska leh.
4. Badeecada bakhaarka taalla waxaa lagu qiimeeyay qiimaha suuqa ay ka joogto
maalinta saka-bixinta, wayna isku waafaqsanyihiin culumada Islaamku in aan
la qaadanin lafaha badeecada, ee waa in suuqa laga soo qiimeeyo badeecada
qiimihii lagu iibin lahaa, kadibna qiimahaas suuqa looga sakeeyo.
5. Deynta baday ee dhan $ 1,500, laga sakeyni maayo, sababtoo ah waa
hanti aan gacan lagu haynin oo khasaartay, waxaase laga sakeyni doonaa
haddii qofkii lagu lahaa deynta uu awood u yeesho mustaqbalka inuu iska
bixiyo deynta soona celiyo.
6. Ganaaxa dolwadda hoose wuxuu lamid yahay qaan lagu leeyahay ganacsadaha
waana laga jari hantida.
7. Biilka qoyska iyo kharashaadka kale ee daruuriga u ah reerka ganacsadaha
waa in laga jaraa hantida inteeda kale, si aan looga sakeynin.

16
Electronics Business Flourishing in
Mogadishu: Implications and Trends
By Ismail Mohamed Ali
Introduction more than that, says my masters thesis. I
The technology sector Yusuf, a salesman of remember a time the size
witnessed a little progress Sanguni General Trading of computers was as big as
in Somalia in the last two L.L.C.The major reason a cupboard. Printer was like
decades. However, the basic comes from the increasing another cupboard. We are
factors of technological demand from other really introduced something
development are missing. businesses. Universities, new and there is no doubt
Absence of constructive schools, hospitals, etc that more will come in
research is one of them. employ a great number the future said another
Also, innovation is not of digital electronics. A senior lecturer. It can
encouraged well. In addition, similar demand comes be drawn from here that
inadequate investments from societies. Barre, technological developments
from both public and private another salesman at Beder brought efficiency and
institutions were allotted Electronics assumes that convenience to users.
for this sector. Although, everyone is thinking to buy
the above-mentioned a laptop. He predicts that What does this imply?
factors do exist, there laptops will be ubiquitous as The people are increasingly
is undeniable progress in hand phones in a 10 years adopting the digital
the business of consumer time. Young generations technologies. It seems that
electronics. use electronics more than the degree of understanding
ever before. It is not a the importance of these
Despite the chaos, many surprise to see someone technologies in the society
businesses of digital using several electronic is high. It is possible to
electronics were launched. equipments simultaneously say that buying these
The market of electronics such as hand-phone, technologies became
showed noticeable portable storage devices something affordable for
improvement in the last few (Hard Disk, Flash Disk, and larger number of people
years. Before 2006, buying MP3 Player etc), laptop, in Mogadishu. It has been
desktop commuters was and digital camera. discovered in one class
not easy. Now, computers alone that 47 out of 60
are available in every office. How do the people perceive local university students
Laptops are increasingly these technologies? have laptops. The rest
used by individuals. The I asked one of my colleagues mentioned that they
use of hand phones is in one of local universities, have desktop computers.
also increasing. A major how important a hand- It is something worth
manufacturer of cell phones phone is for him. His reply mentioning that the people
and laptops, Samsung, has was wonderful. He said in buy the digital devices in
opened a dealership office spite of the voice calls, I terms of their features. For
in Mogadishu. The spread of use hand-phone to send example, if the cell phone
digital electronics is about SMS to teams I supervise. was only tool to make calls,
to enter a new beginning I can surf the internet, now the thing is different.
age. it is possible to use face It means the criteria of
book. According to this choosing a mobile phone
Why is it so booming? user, hand-phone provides is different. Now, it is a
After 2010, the business a variety of uses. tool that enables browsing
of digital electronics grew the internet, playing
nicely. People understood We used to work in a time games, listening to music,
the use of the computer. that these technologies watching videos, taking
We daily receive about 50 didnt exist. In 1988, I photos, and many more.
customers or sometimes used a typewriter for The young generations are
17
more interested in these for communication to
features than just making the world of internet and
calls. The same applies telecommunication. The
to computers. Buying a peoples civilization is Despite the chaos,
new laptop necessitates how they learn and use many businesses of
making sure that a the technologies of their digital electronics were
number of characteristics modern days. Now, we are
including speed, capacity, in the 21st century, the launched. The market
maintainability, durability, century of dotcom, wireless of electronics showed
and portability, etc are communication. We are noticeable improvement
available. really swimming in a part
of a world full of streams in the last few years.
The depth and the spread of of new and ground-breaking Before 2006, buying
digital electronics usage in technologies which are desktop commuters
Mogadishu have increased sometime disruptive. This
recently. This implies two results in a great impact on was not easy. Now,
things. First, the traditional individuals, organizations, computers are available
business models are and society. in every office. Laptops
being replaced by modern
business models. Second, Although, the thing is are increasingly used
the consumption of the somehow different in the by individuals. The use
technology is increasing context of Somalia, there of hand phones is also
among the society. There is an undeniable progress
is a significant acceptance
in the use of technologies. increasing. A major
of technology among the If we look one decade back, manufacturer of cell
society in its various you can feel that Somali phones and laptops,
classes. This indicates that
society has been gradually
we are gradually moving understanding and using Samsung, has opened
towards a modern society, the digital technologies. a dealership office in
the digital literacy. The trend is forward. There Mogadishu. The spread
will be more creativity in
Conclusion the use of technology for of digital electronics is
The people always embrace the years to come. about to enter a new
the technologies of their beginning age.
age. They evolved from
the use of horses and
birds as major techniques

18
Growth Challenges Facing Small
Businesses in Mogadishu
By Abdulrahman M. Nogsane
With the many Lack of government Non-standard products
uncertainties and intervention Counterfeit products
disruptive effects Some of the indicators have found its way into
of todays dynamic of stable macro- Mogadishu markets
business environment economy in a country unlike any other time
s u s t a i n a b i l i t y are the record of price in the past history.
becomes particularly stability, low inflationary Some individual
disturbing challenge environment and stable enterprises infamous
.Albert Einstein was market situations. in their respective
quoted saying: in the While in contrast, high market segments are
turbulent environment inflationary environment, continually alleged
of the 21st century the depreciated currency for the importation
complexity of the way with volatile market of nonstandard
organizations react to conditions imply poor (counterfeit) products.
the environment match economic performance The counterfeit
with the turbulence of which deters reliability products predominate
the environment. in a market and creates in some sectors
unfavorable climate for among them consumer
This article will provide business growth. goods, paralyzing the
snapshot of certain Field studies have shown fair competition from
key aspects influencing that in the absence of genuine products and
the challenges of small active governing bodies consequently leading to
businesses in Mogadishu. these implications the failure of scrupulous
Notwithstanding such as insecurity, small traders
there cognition of the depleted infrastructure, businesses.
redeeming features unregulated market
small businesses played, and lack of government In one of the reported
their development support have cases, a businessman
and sustainability is duplicated negative in the cosmetics was
largely constrained by influence on business put out of business
a number of factors in performances. Small by counterfeiters who
the micro and macro business enterprises imported imitated
environments, namely; in the informal sector products selling almost
lack of government may therefore be more one third the price of an
intervention, poor prone to failure, if there item in his stock. The
infrastructure, is no active government man dealing with price
insecurity, entrepreneur intervention which sensitive customers
misbehavior, technical creates supportive was left to decide
deficiency and alarming climate where they can between two ethical
importation of non- operate under the legal dilemmas; whether
standard products boundaries stipulated. to compete with
among other factors these counterfeiters
outlined in the following and import the same
sections. products or quit the
19
business for good cause corners of the city are experience in the business
and finally chose the latterin part prompted by the field and managerial
selling off his stock and superficial disarmament, skill deficiency. Lack of
leaving the business. This prevailing culture of experience is a common
paints a picture of how impunity and impending occurrence particularly in
simply group intereststransition. In essence, the manufacturing sector.
prevail over the public the combinations of these In one of the casualty,
interest in the absence of scenarios give armed during the early stages of
functioning governmental criminals an incentive to act their startup business,
institutions such as the in such daring manner and if some entrepreneurs have
smallest quality control unit
the necessary intervention purchased low cost but
and the formal regulatory is not put into place, the sham equipment. This
bodies. rate of these incidents critical error takes place
would likely continue to take upon the procurement
Insecurity their tall and pose adverse of the equipment and is
The security remains one effects on business and later discovered when the
of the critical challenges finally the economy of the machine or equipment
faced by the contemporary country. breaks down during
small business community production and often
in Mogadishu. Among Other factors leads to the immediate
recent challenges in the Experience related discontinuance of their
security spheres are deficiency businesses. Moreover,
armed robberies that took Some of the vastly many small business
the lives of their victims. attributed set of reasons entrepreneurs do not
These security incidents of small business possess sound technical
which took place in several challenges include, lack of knowledge and as such suffer

20
managerial skill deficiency. concentrated business certain that he has the
This is coupled with their areas and sometimes apply abilities which will permit
lack of awareness to seek copy cut strategies by him to succeed where his
professional assistance in supplying the market similar predecessor has failed
the various functional areas products in a magnitude. ...Unaware of the odds
of their business. This causes imbalance to against them, and largely
the equilibrium of demand ignorant of the weapons
E n t r e p r e n e u r s and supply which in turn of trade, prospective
misbehavior affects pricing issues and proprietors march stolidly
Another major challenge the success of one business to the ambush. (TNEC
also lies entrepreneurs comes at the expense of 1941).
behavior which tends to the other. Typically, this
be obsessed by what the limits the growth potential Conclusion
Somalis call as Xiiso of many small businesses Given the caveats outlined
a temporary desire or and creates lack of focus in above, it is clear that
interest of activity that niche markets. the disruptive forces in
pushes people to pursue the external environment
enthusiastically something Lack of information present threatening
but lasts only for a short Lack of information also danger to small business
period of time. Xiiso in this tends to cause higher growth. To this end, firstly
sense means what might incidence of small business there is an urgent need for
be called as Faddishness. failure. There are reported the relevant government
A significant number of cases where a small business administrative bodies
small businesses have that failed another hopeful such as monetary and the
been started due to this entrepreneur had taken up commerce institutions
influence and rarely survive. the same venture equipped to step in and provide
An Entrepreneur starts with no information of the support services including,
to pursue new business challenges that lie before regulations governing
probably that of a friend while him, the entrepreneur conduct, adoption of
prior knowledge and or field falls at the same trap his specific management
interest is not considered predecessor did and meets policies and practices to
as prime factor. However, the same fate. This confers improve the effectiveness
when the challenges of a picture which seems to be and sustainability of small
the business emerge the similar in some respects to businesses.
emotional appeal fad fades the US Temporary National
and the business goes to Economic Committee Secondly, it is also
decline where eventually it comment cited by Peacock essential for small
sadly meets the definition (2000) that said: business entrepreneurs to
of failure. seek counseling services
The chance of a newcomer from external consultants
Business overcrowding becoming an established in a range of areas;
Similarly, other growing member of the business such as preparation of
concern is the business community is sadly slight. feasibility studies, auditing
overcrowding of one He carries on until his and financial services,
area. The majority of small funds are exhausted and managerial capacity building
business entrepreneurs then disappears from as well as employees
in Mogadishu have the the scene. His place is trainings,
tendency to target taken by another hopeful,

21
Somalia, Emerging International
Business Market
By: Abdirahman Ahmed Mudey
H
istorically, Somalis public institutions leading controlling trade routes in
had trade across to massive unemployment the African continent, and
the border with the across the nation. Somalia having the capacity to offer
neighboring countries, the responded quickly to the supply-route for goods to
Arabian Peninsula and other unexpected crisis by the landlocked countries
world countries. Somalis setting up small businesses nearby whose population is
had a trade with ancient of their own so that they very big.
Egyptians, exporting goods can ensure families make
to Egypt in exchange for ends meet. Despite the importance of
necessities at home. This the location, the skills of
sort of trade was on small This has resulted in the the Somalis in businesses
scale however the world Somalis making trade with can be upgraded into a
had undergone tremendous the regional countries Global level. They can take
change from 1980s to fostering the trade ties advantage of the current
1990s. Phenomena called among the east African open markets across the
Globalization had come communities. From such world, now that trade
to light. Somalis trade business adventures, barriers were removed;
with the rest of the world Somalis obtained world countries realize
gained momentum when experience that there is that a country should only
the cost of transportation a possibility of Somalia to produce goods and services
and communication were become business market they can efficiently produce.
lowered to a reasonable for the region. Furthermore, the nations
level. Now that, Somalis One may maintain that can exchange goods and
at home do businesses Somalis population is tiny, services thus improving
with countries across the largely displaced across both social and economic
world by consuming goods, the country or already fled conditions in the countries
services imported from the country. As a result, of the world. Regionally,
almost every corner of the the country cannot be countries have made
globe. Although, Somalia an international market. treaties paving the way for
descended into a civil strife, The strategic location of full economic integration.
the citizens managed Somalia, may establish Somalia is no exception she
to maintain businesses trade corridor that can take her own share
despite the pitfalls around supplies goods of different regionally as well as globally.
the corner. types to the regional
states in particular and Large number of
Over the past two decades, the African continent as International investors
one of the main sources a whole. Having small are looking for lucrative
of income for the Somalis number of population does portfolios abroad, who not
at home was the rise of not prevent Somalia being only believe international
local medium and small a large possible market portfolio reduces risk but
businesses. The fall of the that may emerge from the also believe investing abroad
military regime in 1991, east African communities. can reduce cost per unit
marked the prelude of Somalis enjoy having the significantly, if they place
anarchy that wiped out largest beach in east Africa their production facilities in
22
a country where the cost leadership takes over the of creating regional
of material and labor is very power, then they ensure market. To ensure the
low. Somalia proves to be that tranquility is restored flow of capital and people
one of the places where in Somalia giving them from other countries, the
the cost of production the power to overcome administration should make
may be regarded very low. the current international sure that policies and rules
The available raw materials outcry of piracy that had that act as hindrance to
like, livestock, agriculture disrupted the world trade. the trade are removed to
coupled with the finishing the extent that the country
industry remain moderately Economic problem: becomes conducive market
priced, this may act as a They can also manage for foreign investors to
platform to attract foreign to ensure Somali shilling invest. Similarly, stock
investors. becomes much stronger market that facilitates
than its current status, investment should be
Factors that can speed up leading to better Balance established so that raising
that market of Payments. funds will not be a problem
1. Political and economic anymore.
stability Free market system:
2. Free market system The country should also Conclusion
3. Infrastructure ensure that the market Somalia remains viable
system is free, whereby trade route at regional as
Political risk: the administration does not well as international level,
The main risk facing the have strict restrictions on turning the country into an
emergence of such market the movement of goods and international market is easy
is the political instability of services, if this happens it if its people work towards
the country. If an effective defeats the whole purpose realizing such dream.

23
Private Air Transport and
Customer Care in Somalia
By Abdikarim Mohaidin Ahmed
Introduction these enterprises to some while there is a poor
Somali Airlines was founded serious dilemma facing their customer care especially
on 5 March 1964 as prospective customers when complaint handling is
the newly independent especially those take place due.
Somalias national airline. when the connection route
The countrys then civilian are done. Moreover, the Customer care and
government and Alitalia paper will suggest useful business development
owned equal shares in the ways which can be used to Customer care is a crucial
company, with each holding mitigate such problems. element of business
a 50% controlling stake. The success. Every time you
carrier began operations Current Situation have contact with your
in July of the same year. Despite the unquestionable customers you have an
It initially served domestic positive contribution of opportunity to improve
destinations, with three the private enterprises your reputation with
DC-3s and two Cessna involved in air transport, them and increase the
180s. In March 1965, the prospective customers likelihood of further sales.
the airline embarked on its face numerous problems. A Customer care involves
first international route, poor connection routes are putting systems in place to
to Aden. Somali Airlines always done so that the maximise your customers
became a fully state-owned customers have to remain satisfaction with your
company in 1977. in transit all day long some business. It should be a
However, Due to the times more than 48 hours prime consideration for
outbreak of the civil war in the airports. every business - your sales
in the early 1990s, all of Moreover, most of the and profitability depends
the carriers operations customers are not familiar on keeping your customers
were officially suspended with the foreign languages happy.
in 1991. The void created making hard for them to
by the collapse of the communicate with the Use customer care to
airline has since been airport workers while they increase sales
filled by various Somali cannot find a person from Your existing customers
owned private carriers, their carriers who can help are among the most
such as Jubba Airways, them. That had caused important assets of your
Daallo Airlines and Puntair. many of them to be sent business - they have already
These private enterprises back home by Airport chosen you instead of your
played an important role authorities as I witnessed in competitors. Keeping their
in connecting Somalis to Entebe and Jomo Kenyatta custom costs far less than
the other world. Without International Airports. In attracting new business,
their presence a lot of addition to that, delay of so its worth taking steps
business couldnt survive. the flight timelines is very to make sure that theyre
The objective of this paper common problem among satisfied with the service
is to draw the attention of these private enterprises they receive.

24
There are a number Conclusion and After all, these
of techniques you can recommendations enterprises should
employ, including: The private owned implement certain
providing a free carriers who perform type of customer care
customer helpline business in Somalia by collecting their
answering frequently played a worthy role in complaints, stand by
asked questions on filling the gap and serving their side while they are
your website the society for wide still en-route, provide
Making follow up calls range of businesses. them the necessary
after sales These include facilitating help they need, give
providing free the transportation them the best advice
products that will from place to place for which is a valuable for
help customers look business, education, their transportation
after or make the health, or tourism process and maintain
most out of their purposes. It also helps their well being as much
purchases the import of business as possible. That will
sending reminders items very early through open a door for business
when services or cargo services. No to compete and develop
check-ups are due one can ignore their effectively in the current
offering preferential beneficial contribution and future market by
discounts to existing to the society in many retaining and creating
customers on further different ways but much potential customers all
purchases still needs to be done. the more.

25
Technology Transfer:
What Everybody Should Know
By Ismail Mohamed Ali
Introduction in the third world. diffused throughout human
I
n the 21st century, The developing countries activity David (1992). Yet,
the digital age, the are struggling to get a viable another concise definition
importance of technology and sound technological marks it as the movement
has increased globally. The base. This is because of new technology from its
good use and understanding technology is a crucial input creator or researcher to a
of modern technologies in the industrialization and user (dictionary.reference.
has become one of the development of nations. com, accessed 2012).
distinguishing factors when It is an important factor
it comes to development that can revolutionize the The definitions may seem
of nations. There are good economy. The developed diverse but they all agree
hopes, here in Somalia, that countries hold the source on one thing. They agree
years of anarchy will end of technology. They produce on that technology process
and both public and private it and transfer it to the involves two sides, one side
sectors will continue to rest of the world. The that is transferring and
recover. Therefore, it is receiving countries are other side that is receiving.
the time to shed the light said to be consumers. The The transferors and
on many important topics deal occurs between few receivers vary depending on
including technology. countries of producers and the type of the technology
This article examines vast majority of consumers. being transferred. It is
technology transfer, a There are shared interests also assumable that the
globally-discussed issue of and some concerns of both transferred body can be
technology. sides. The above sentences in the form of technology
Suppose you need new carry a broad meaning equipment or knowledge
software in your business. of one topic, technology behind the technology.
Do you develop it by transfer. Who are the Suppliers
yourself or you acquire it of Technology?
from other companies? What is a Technology Technology generation
Do you use a familiar, Transfer? comes as the result of
time-tested technology, There is no general innovative activity which
or do you incorporate a consensus on how exactly is mainly concentrated
new technology with a technology transfer should in few industrialized
great promise? Do you be defined. According to countries (Nagesh, 1997).
look for empirical evidence Barton (2007), technology Technological innovations
that the new technology transfer is basically the occur in developed countries
works, or do you base on flow of knowledge from one and then transferred to
your personal view, your human being to another. developing countries Falvey
friends advices, or vendor The transferred knowledge & Foster(2006). According
suggestions? Your choices can flow from the research to a report of United Nations
are probably determined by industry to the applying Framework Convention on
whether you see yourself industry or from one Climate Change (2010),
as technology producer or firm to another. Another the top five technology
technology consumer. In definition says technology suppliers are Germany,
any case, it is important to transfer is the development USA, Japan, Denmark and
have a technology-selection of technology in one setting China. Their contribution
strategy. Choosing a that is then transferred constitutes to 58 % of
viable technology that fits for use in another setting the transferred technology
organizational objectives is Jun(2009). Another labeled by project type. This is
one of the major challenges it as the process by which when projects for which
of many countries that fall science and technology are their source of technology
26
is unknown are excluded. suppliers are accused diminish the flow of
Sangeeta & Martin (2010) of precluding from host technology and technology-
also emphasize the above- countries the possibility of related knowledge from
mentioned figure. They absorbing the knowledge technological industries
indicate that 10 developed behind the technology. to the rest of the world.
countries provide 84 Having the capability of Statistics show that
percent of the resources absorbing the modern the rate of technologies
spent on Research & technology and molding it transferred to OIC
Development (R&D) globally into the economic power countries was estimated
and control 94 percent of is something vital. This is at 2.9%. Malaysia hosts
technological output. USA, where the comprehensive 74.5% of the 2.9%
Japan and Germany come definition of Sangeeta & (Statistical, Economic
in the top of the list. The Martin (2010) applies and Social Research
countries such as France, to. They assert that and Training Centre for
UK, Italy and Canada, also technology transfer is not Islamic Countries (Sesric)
appear in the list. merely the purchase of Manager, 2010).
equipment but includes
The Host Countries: the transfer of underlying Recommendations for
Opportunities and skills and knowledge. This the Host Countries
Concerns enables the host countries On white paper by Global
As the proponents of to develop entirely new Intellectual Property
technology say, the new products and to establish Center (GIPC), 2010,
advances in technology can professional know-how several recommendations
result in a paradigm shift in (UNTCAD Series, 2001, have been mentioned which
the way of doing business. cited in Santikarn, 1981). the host countries may
Nations who employ good Another studies put the consider:
culture in technology blame of technology transfer First, Governments
diffusion, sooner they can challenges on what they should establish a strong
meet the needs of their called compulsory licensing, legal environment.
society and gain self- patent exceptions, and Legal environments
efficiency (Yazdani et al, intellectual properties that provide strong IP
2011). They can stimulate rights (IPR) protection. rights which in turn can
local innovation Park & give rise to the birth of
Lippoldt (2008). The
Another important capable innovators that
developing countries can challenge is that many can efficiently manage
create wealth, knowledge of least developed the flow of their products
and ability through
countries may not be into global markets.
technology. Furthermore, socially, economically, or Second, governments
there is a correlation even politically ready to should encourage R&D
between technology
accept and empower the and globally-based
development and social, technology adoption in their invention. Technological
political, cultural and
countries. It has been found breakthroughs come
economic welfare (Yazdani that the states marked as as a result of massive
et al, 2011, cited in Khalil,least developed countries and continuous R&D
2001). (LDC) did not manage yet activities carried out
to provide their societys by researchers and
In spite of huge basic life infrastructure scientists collaborating
opportunities, there such as transport, clean across the globe.
are growing concerns water, healthcare, food and Governments should
of developing countries. education. So innovation spur basic scientific
Studies show that type of and acquisition of new research and encourage
technologies supplied to technology come beyond the global collaborations.
developing countries came scope of these countries. Another thing
in the form of capital goods government should
and equipment. Technology The challenges can greatly consider is adopting

27
economic policies that in human capital. necessary for the alignment
support innovation, It is recommended of new technologies with
namely government for governments to national and organizational
incentives for R&D, make the long-term goals. A technology is an
fostering collaboration investments necessary important factor that can
among various research to create a knowledge- cause the economy to thrive.
institutions either in based society. This Acquisition and adoption
public sector or private includes creating strong of a viable technology is
sector, promoting open educational systems something necessary
markets and trade, and that provide necessary for industrialization and
national policies that technical skills training development of countries.
support innovation and and supporting Technology transfer is a
technology diffusion. students to pursue globally -addressed issue.
careers in science, There are some challenges
Improving local technology, engineering, of technology transfer
infrastructure such and math. Having in developing countries.
facilities, roads, power research institutions, Missing governments
supplies, healthcare, which can attract both readiness is one of them.
and building local local and international Researchers suggest
communities can also researchers, and can recommendations for host
lead to better utilization foster collaboration, is countries to follow. Building
of advanced technology. also recommended. strong human capital
and investing in scientific
The last and which Conclusion research are two of them.
seems to be more Having a good technology-
important is to invest selection strategy is
Technology generation comes as the result

of innovative activity which is mainly
concentrated in few industrialized countries
(Nagesh, 1997). Technological innovations
occur in developed countries and then
transferred to developing countries Falvey &
Foster (2006).

28
Contribution of Turkish Investment
to Peace-Building Process in
Somalia
By Ibrahim Mohamud Hamud
I
n the middle of nowhere, scholarships and started decade. Investment in
Turkish government dared airline roots from around Africa in 2011, exceeded
to set its feet on the land the world that is fast, $5 billion.
of Mogadishu, a political reliable and cheap. The
niche, Somalia; a country Turkish airline, the first Residents of Mogadishu
some outsiders call the major commercial carrier say that Turkish nationals
most dangerous places on to fly directly to Somalia are brave. This is because;
this planet. in more than 20 years, is Turkey is welcome ally in
expected to charge the Somalia. To remind you the
After contributing millions lowest fares soon. Turkish economic power,
of dollars to the famine- Turkey is targeting 10th
affected people in the Future trade possibilities in place in the world economy
IDPs Camps in Mogadishu, the energy, construction, in 2023.
Turkish government agriculture and fishing are
started to extend a mutual also in the agenda and/ These events came in
relationship hand to sign or on the radar of Turkish period when transitional
investment deals with investors. Laura Heaton statehood comes to an
Somali government that of the Journal of Foreign end. The Somali business
could last for nearly 50 Policy says According to people run into lobbying for
years. the Turkish Ministry of the expected projects to
Economy, Turkish private get their share in the pie.
It built schools, established investment in Africa has The ongoing and expected
hospitals, provided risen sharply over the past Turkish investment projects

29
will provide employment Therefore, employment In conclusion, Turkish
opportunities, re-building opportunities, one of the investment ambitions
of the war-torn capital contributing factors to are helping hand of the
and restoration of public peace-building process, peace-building process in
services. It is safe to say will be in the grab of so Somalia. There are several
that Turkish government many Somalis who were indicators of this impact.
will provide some security unemployed since 1991. Foreign direct investment
assistance to Somali will increase, because of
government to ensure Being hopeless of getting other countries follow
the safety of its long- employed encourages the suit of Turkey. Many
term national goals, and the youngsters to get employment opportunities
investment projects in involved in robbery and will be created and hence,
Somalia. theft. According to Kameel less violence and anarchy.
(2004), unemployment Finally, expected security
The arrival of key role player and poverty are some of collaboration between
in the world politics such the reasons why crime is Somali government in
as Turkey, the investment committed in the society. one side and the foreign
opportunities, and the investors on the other will
possible security assistance In addition, Somalis are boost stability.
to Somali government well-known for helping each
are expected to create a other out (Hamud, 2011).
peaceful environment for The effect of the employment
both Somalis and foreign is that families and friends
investors. According of the employed person will
to Sarah Farah at VOA all benefit. Furthermore,
(2012), Turkish officials the people used to get
The arrival
think bringing stability to enough time to analyze and
Somalia will lead to stability brew tribal conflicts and of key role
in the broader region. powers, but once employed,
Also, Observers see new the amount of time left for player in
investments as a magic this is minimal. Hence, the
wand to accelerate an decrease of the obstacles the world
anticipated recovery from to peace will provide ample
problems that have torn time to those who are politics
the country apart. involved in peace-building
The arrival of Turkish

process. such as
government in Somalia The then president of
encouraged other countries Somalia emphasized that
Turkey.
to follow suit. The objectives Turkeys help will be of great
may be different, but importance in maintaining
investment is one of them. sustainable peace in the
This will increase the size of country during his meeting
foreign direct investment with Turkish business men
(FDI) in the infrastructure (Todays Zaman, 2012).
of the Somali economy.

30
The Exercise of Third
Party Logistics in Somalia
By Abdikarim Mohaidin Ahmed
Unfortunately, private
enterprises in Mogadishu
neglected the use of
these resources properly.
Private companies
especially those who
import goods failed to
package their products
within containers so as
to protect them from
accidental damage. They
also recruit personally
owned vehicles to
transit their goods from
the seaport to their
warehouses and their
distribution centers. But
what is more interesting
Introduction facing the private is that these vehicles are
There are similarities enterprises especially excessively overloaded
between the biological those that take place and driven through the
theory life will find a when transit of goods rocky unbalanced roads
way, and the economic from a place to another of the city leading to the
situation in Somalia. In is by hand. Moreover, overturn of the trucks and
essence, the shadow the paper will emphasize damage of the products.
economy of Somalia has the contribution of Third On the other hand,
found a way. Despite Party Logistics (3PL) on receiving process is very
being plagued by the mitigating such problems. complex due to absence
destruction of colonialism, of needed equipments
an influx of small arms, a such as folk lifts, Reach
dictatorial regime, civil Transportation problems trucks, Block stacking
war, and famine, private Physical distribution equipments, Side-
enterprise has managed seems not to be an loader, Multi-directional
to provide most of the easy task to do. It truck, etc. in addition to
economic services that requires both physical that, Order Picking and
the modern nation-state and mental resources. replenishment process
is responsible for. These resources include could be complex task to
transportation vehicles, do for the same reason.
However, there are many handling systems,
challenges associated packaging equipments Overview of third party
with performing a business and more. The process logistics
activity in Somalia also requires unyielding Third party logistics (3PL)
particularly Mogadishu the management procedure companies are a becoming
capital including security, to handle and execute an important part of
infrastructure problems, distribution tasks todays supply chain. These
business literacy and so successfully. Some companies offer services
many others which cannot companies adopted the that can allow businesses
be wrapped up in this text. use of third party logistics to outsource part or
The purpose of this paper to overcome such critical all of their supply chain
is to highlight the physical everyday jobs. management function.
distribution challenges Many 3PL companies
31
offer a wide range of distribution. These
services including; advantages can be Recommendations
inbound freight, categorized into: Key recommendations
freight consolidation, include the rapid
w a r e h o u s i n g , Cost advantages development of human
distribution, order There are several resources, greater
fulfillment and outbound cost advantages attention should be
freight. The growth of claimed because of the paid to highlight the
3PL companies has elimination of asset understanding of the
been driven by the ownership. In particular, benefits behind the use of
need for businesses to there are capital cost 3PL. Universities should
become leaner, reducing advantages through encourage business
assets and allowing using third party to use 3PL within
focus on core business distribution because the their public lectures
processes. client company does not and panel discussions.
have to invest in facilities In addition to that,
Rise of Third Party and resources such as Somali entrepreneurs
Logistics Providers distribution centres should pay a particular
The growth of 3PL and vehicles as it would attention to develop
companies began back for its own operation. such companies who
in the 1980s when Thus, the capital can can bring mutual benefit
businesses began to look be invested in more and can make it possible
for new ways in which profitable areas of the for 3PL business to
they could outsource business, such as new take root and flourish in
logistics functions and production machinery, Somalia.
concentrate on their retail stores, etc
core business. One
company that has been Organizational
associated with the 3PL advantages U n f o r t u n a t e l y,
revolution is FedEx. TheOne of the prime reasons
companys quoted for the move to
overnight private enterprises in
delivery service changedthe use of a third-party Mogadishu neglected
the way in distribution
which company the use of these
business to business andis the opportunity for resources properly.
business to customer users to focus on their
transactions operated. core business. There Private companies
This offered businesses are both organizational especially those who
the opportunity of usingand cost benefits to import goods failed to
just-in-time techniques,be gained from this. package their products
which saved warehousing The cost advantages
within containers
space and have been identified
reduced
overall costs. in the capital cost
The so as to protect
savings
introduction of efficient- outlined in them from accidental
consumer-response a previous section. damage. They also
(ECR) techniques led The organizational recruit personally
to smaller and more advantages are less
obvious, but concern
efficient shipment sizes, owned vehicles to
which in turn further the opportunity for transit their goods
reduced costs. companies to streamline from the seaport to
their organizations their warehouses
Third party logistic and particularly
Benefits to concentrate and their distribution
There are a large management expertise centers.
number of advantages in the core business
claimed for third-party areas.

32
Does Small Business Need
Consulting?
By Ahmed Salat Ahmed Haraf
Introduction per day as much as they highly expensive highly
The role of the small are born. That means expert individuals and
businesses in the for every single small organizations.
growth of the market business created, a
economies have been number of other similar The role of business
well documented in the businesses cease to exist consultancy
business literature with the same rate. This The level of risk
back and forth. Their situation indicates the management within the
contributions to the need for sustainability big corporations tends
economy included, within the small business to grow in tandem with
but not limited to, world. the level of pressure
accommodation of the external factors and
great majority of the new The sustainability of the capital providers apply.
work force, a considerable big businesses comes This means big companies
outreach of consumers, from the regular risk have sometimes business
and capital employment. management and the obligations to use the
This said, the continual seeking out of business service of high calibre
growth and prosperity of consultants to improve consultants to engage in
the small business should continual business highly complex business
be encouraged. However, decisions. They (the big decisions on a regular
the facts unfortunately corporations) budget for basis. This fact can
points out that small and regularly pre-plan contribute to the common
business nearly die out to employ the service of knowledge that big

33
corporations hardly fail, and be overemphasized. As employee level of less than
if they do, they fail hard. This competition increases, 500.
brings us back to the small small businesses owners
business traffic in both should be aware of the Conclusion
directions. The continued changing environments and The need for business
failure of small businesses demands of the day. Such consultancy is important
can only increase the level important documents as consideration for small
of frustration and despair strategic plan and market business owners to grow
among young business plan need to prepared and financially. The firms
people. implemented in simplified that provide business
One of the reasons small terms. When it comes to consultancy can be helpful,
business fail is the lack of accounting, only taxation given the high costs they
business knowledge of the is a requirement. However charge. However, there
start-up owners. They are accounting for decisions to is an alternative way of
so ignorant of the ways decide on special orders and acquiring consultations.
of business that they the use of opportunity costs Self help books specifically
dont even think about the in day to day operations are written for small business
reasons for the business also necessary. owners can be very helpful
failures. They think its only Recruiting good hand and practically useful.
natural to fail in business. for the management
If business failure is of your business is one
natural, is it natural to lose way of taking benefit of
$15,000 worth business a good business advice.
The level of risk
establishment? No, even There are small business
for the millionaire, one consulting firms operating management
penny lost represents one in the country that can
penny less from the GDP of help small businesses within the big
the country. grow. Communicating with
Small business owners these firms is a first step
in taking control of your
corporations
can benefit from the
directions and suggestions business. Also there are
given by the business business magazines that tends to grow in
experts in a variety of relay information from
ways. Management and outside sources that can tandem with the
accounting consultancy be of help.
can make a huge difference Finally for avid reader
level of pressure
in small business owners, there is an arsenal
sustainability. of self help books specifically
written to be the hand book external factors
Cost of consultants for small business owners.
The cost of consultancy Even accounting books and capital
can sometime outweigh written for non accounting
expected benefits in a managers can serve basic
providers apply
number of situations. business needs for decision
However, the need for making. This important
consultancy in even in tiny when small business is
business setting cannot defined as a firm with an

34
35
36

Rebuilding Somalia's Infrastructure Through Public-Private Partnerships

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SOMALI BUSINESS

Somali Business Review Special Edition

Operation Editors Infrastructure Development and State

Why Somali Women Enter Into

Ka Sakeynta Hawlaha Ganacsiga Iyo

Electronics Business Flourishing in

Growth Challenges Facing Small

Abdirahman Mohamed Anas

Amino Omar Mohamud Private Air Transport and Customer

Technology Transfer: What Everybody

Data Collector Contribution of Turkish Investment to

Somali Business Review Special Edition 2013

Since the last time Finally, comments and

Somali Business Review Special Edition 2013

APPROACH: Somali Post-Conflict Economic Recovery

Introduction including electricity, water, discuss these issues.

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Ganacsiga waxaa lagu (cooporatives) iyo shirkad lacagta ganacsiga ku jirta

Xalka tusaalaha ka sakeynta shirkadda:

B. Qaanta muddada gaaban:

C. Raasumaalka kobcaaya (A-B) $95,500

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Tusaale: Ganacsade Maxamuud wuxuu ka ganacsadaa noocyo kala duwan oo badeeco ah

B. Qaanta lagu leeyahay Maxamuud

Xog dheeraad ah:

Somali Business Review Special Edition 2013

1. Badeecada Maxamuud leeyahay

2. Xisaabinta deymaha Maxamuud ka maqan

3. Xisaabinta qaanta bixinta mudan2

Somali Business Review Special Edition 2013

C. Raasumaalka kobcaaya (A-B) $75,100

Maadaama hantida Maxamuud ay ka badan tahay nisaabkii loo baahnaa waxaa

Faalleynta xalka tusaalaha:

Somali Business Review Special Edition

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Technology generation comes as the result

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

The arrival of Turkish

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

Somali Business Review Special Edition 2013

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