Pres. Guelleh on Food Security, Inflation Somalia

[Abu-Salman]

Press Conference (translated from French):

 

The President addressing the national press

 

 

Tuesday, May 6, 2008, Haramous. It is almost 4 pm when representatives of the national press took place in the spacious living room overlooking the sea and where the Head of State is accustomed to receive his guests. The press conference began 20 minutes later when the head of state joined us. It starts with a social component.

 

 

How to fight against speculation that keeps food prices rising?

 

 

The problem of sudden price has not surprised us because we are one of the few countries in the world that import everything and therefore are vulnerable. We lived like that because of the scarcity of water and arable land, the dry and desertic climate. And we are traditionally a nation of nomads ignoring agriculture. All this has meant that the Republic of Djibouti has always been importing. And dependent on the outside. This has not escaped me since the beginning of my mandate.

 

We've worked a lot and we continue to do so because food security is a key element of national independence.

 

We asked some friendly countries which, unlike us, have arable land so that we can cultivate our fields there.

 

Our strategy is first to assure our people have access to a minimum of food. We are pleased to have been anticipating this crisis and our first harvest of Doura will happen in a few days. A harvest that will come from Sudan and more specifically from Gedaref. We initiated a major project of palm trees. There is also a laboratory to produce the first 20,000 seedlings in 1 or 2 months. We have invested heavily in the search for water with the purchase of hydraulic equipment for public works and we have also introduced an array of devices used to retain water from our wadis which pours almost entirely into the sea. We also wanted to introduce people to greehouse culture. We started the PK12 and Arta with our Moroccan brothers who sent us a professor. He toured the country and realized we could do something if we dare. We must meet this challenge and its recommendations, we'll install greenhouses pilot projects in the districts of the interior and show our people that it is possible first of all not to import vegetables. I do know there is someone who has cultivated rice in greenhouses in Ambouli. Even if it is not profitable, it has shown that it is feasible. That is the summary about the measures we have taken.

 

For the price surge, what we need to do is not to increase the burden on the population, to be in tune with our importers. And it is to identify the vulnerable people to help them. You should know that we are in a particularly difficult period.

 

The cancellation of the TIC (Tax on Internal Consumption) decided at the last Council of Ministers represents a shortfall of 500 million Francs for the State. How to replace this money?

 

We will make the necessary adjustment, but you must know that we could not afford to tax food necessary to people's lives. It was the least thing we could do.

 

 

The Somali File

 

 

Given the belligerent climate prevailing in the region, are you not afraid that there are no solutions to the Somali problem? (Moumin)

 

 

I Do not think so. The Somali process initiated by the General Secretariat of the United Nations is on track. Because the first step, the most difficult, which is the presentation of lists of delegates of both parties, is well on track. The opposition has sent its lists and the TFG will do so shortly. I was just on the phone with the Prime Minister of Somalia who did not seem worried nevertheless. We seek to ensure that dialogue prevails.

 

 

We have heard that parts of the warring groups seek to prevent the participation of the concerned parties in the dialogue?

 

 

 

It is apparent that the first obstacle that arises now is the non-compliance with the number of people who are on the lists. And it takes 7 per party. The opposition has provided us a list of 11 persons. One must also know that being able to get the lists done is very difficult. There will be difficulties until the end but I am still optimistic.

 

 

Economy

 

 

What are the projections for the future? What are the major economic projects that will support this dynamism and how do you evaluate the role of Arab countries in this dynamism? (Moumin)

 

 

This is a difficult issue. The growth is there but it has been affected by rising oil prices and the resulting inflation. This growth would have been more useful for our country had it not been for the record rise in oil prices. But we created jobs and according to my figures, 6000 new jobs were created. Now the project on which we base all our hopes, is the salt from the Lac Assal (Assal Lake). It is the most important for me because it is a national wealth that will last a long time, it will generate jobs and income and it is a project worth 75 million dollars. Work has also well started for the new wharf for the export of industrial raw salt that would be up to 6 million tons per year. For the 1st year, we will start with 1 million and a half but we need to reach 6 million over the next 3 years.

 

In addition, we will develop a number of industries derived from salt, first refining salt then detergents and other salt derivatives. This is a first project which will employ hundreds if not thousands of people. There is also the Doraleh terminal which will generate other activities such as storage of chemicals, industries which will move to the Free Zone. There will also be an oil refinery. Noteworthy is also that the cement industry will expand.

 

We believe we can set up several cement plants. We have invested in the field of geothermal energy and we intend to exploit this resource in late 2011. There is also a wind energy potential to be exploited in the Goubet. Likewise for solar energy. Today it is possible to feed our infrastructure with solar energy. In the form of solar energy, we have a potential 60,000 times greater than our current needs.

 

The interconnection with Ethiopia is on track. It will be implemented in 2011. This requires training for human resources and we are working on it.

 

 

There are many projects in view but you have repeatedly stressed your dissatisfaction about the effects of growth that does not create many jobs. This is not due to the inequality between training and labour market?

 

 

There is a change needed at the fundamental level. We were trapped into a training system that resulted in young people emerging with the CAP (certificate of vocational competence). Then we said no, we should aim for a high school. It was created with the LEP (high school for vocational education). Then we turned to the LIC (industrial and commercial high school). Now we have young people with ISEP and BAC Pro (high school and diploma level vocational qualifications), who never had hands on experience. They do not weigh heavy comparing with foreigners who have had practical experience. 5 colleges that will open their doors next year will provide real workers. At the university level, we will be forced from this year to introduce programs tailored on our vocational needs.

 

 

Do you think that energy is the only obstacle to the installation of industrial units?

 

 

Absolutely. Our project of geothermal energy exploitation is a project of national interest that concerns us at the highest level, we are working on it and ask you to be patient until 2012. Without energy available at a lower cost, it is not possible to set up industrial facilities. Many companies have settled in the Free Zone and left because of this problem. So it is our hope to resolve once and for all this problem. Likewise for water.

 

 

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