Fortunes of war: the creation of a Somali merchant diaspora

[Sharmarkee]

Fortunes of war: the creation of a Somali merchant diaspora

Ethan Zuckerman has written a fascinating essay on expatriate Somalis who are investing in the country, either by returning home to start businesses or by opening Somali branches of foreign-based enterprises. The investment is apparently driven both by expanding economies in the Somaliland and Puntland enclaves and the perception that stability may be returning to southern Somalia. This favorable climate may or may not persist in the short term; for every positive sign of ports being reopened and piracy being suppressed, there are signals that the region may descend into another round of warfare. What this means over the longer term, however, is that the Somalis have become one of the world's newest merchant diasporas, and this could ultimately have a profound effect on the economy and politics of the homeland.

 

To be sure, the Somali diaspora is hardly a new phenomenon. The history of Somali migration extends more than a century and has its roots in precolonial nomadism. Nevertheless, it can be divided into three distinct periods, with the most recent period less than twenty years old. During colonial times, when Somalia was divided between British and Italian control, Somalis emigrated to the metropole either as students or as laborers. Beginning in the 1950s and continuing through the first two decades of independence, there was considerable Somali migration to Saudi Arabia and the Gulf states, with the immigrants initially arriving as oil workers and following the same path of social mobility as the south Asians. Most recently, beginning with the onset of civil war at the end of the 1980s, Somalis have left their country as refugees.

 

It is the last of these periods that has turned the Somali diaspora into one of the world's great transnational communities. Unlike the relatively small number of Somalis who participated in the first two periods of emigration, the war refugees number more than half a million. During the past twenty years, they have fanned out along three main migration routes: west to Europe and the United States, north to the Persian Gulf and southward to South Africa. The first two of these routes terminate in established Somali communities, with much of the migration going to the United Kingdom, Italy and the United Arab Emirates, but the third has opened up new frontiers for expatriate Somalis. Also, many emigrants never reach the end of the line; the vagaries of poverty, transportation and hostile immigration authorities cause many who take the western route to finish their journeys in Egypt and Libya, while those who take the northern route fetch up in Yemen and those who migrate south often settle in Kenya and elsewhere along the east African coast.

 

These refugee communities are far-flung, but they share certain characteristics, and one of the common threads is a growing presence in business. This trend is most pronounced in Dubai, where Somalis are the largest African community and where an established population has existed for two generations. Thanks to this well-settled community and a favorable business climate, Dubai has drawn many refugees who were businessmen in Somalia and who were able to get away with some of their money and business connections. The Somalis have established a significant presence in the retail, hotel and import-export sectors, and their economic success has in turn established Dubai as the center of global Somali commerce. The Somali Business Council is based in Dubai, as are a number of large companies with satellite businesses in Somalia itself.

 

The other Somali refugee populations haven't prospered to quite the same extent as those in the UAE, but they have also found niches in commerce, often starting businesses to supplement meager or nonexistent refugee allowances. Mulki al-Sharmani's study of Somali refugees in Egypt, for example, found that many Somalis had established small retail and service businesses, primarily aimed at a Somali immigrant market. In South Africa, which has a Somali population estimated at more than 7000, Somalis have settled in Western Cape province and become known for operating "tuckshops" or convenience stores. These represent two of the early stages in the development of merchant diasporas; like most such communities, first-generation Somali expatriates typically begin by selling to members of their own ethnic group and progress to small general-market businesses.

 

Commercial success, of course, has its own hazards. Merchant minorities, especially foreign ones, tend to be resented by the local population, and the newest and least-established merchant minorities are often the most vulnerable to stereotyping and violence. In South Africa, 26 Somali merchants have been murdered in the past month, and the local Somali business community believes that its members are being targeted for racial reasons. There have also been reports of "meetings held by business owners... to plan the removal of Somalis from their townships," and although many officials (and the ANC) have condemned the killings, others blame them on "the uncontrolled access that migrants from the rest of Africa have in South Africa." As the Somalis establish themselves, develop local political connections and progress to more lucrative areas of business, they will likely become more secure, but at present their concentration in marginal businesses in economically depressed neighborhoods renders them

 

However uneven the patterns of development, the fact remains that Somalis are becoming known throughout the world as businessmen, and their dispersion has enabled them to establish companies as nomadic as themselves. The Somali Telecom Group, for instance, was founded by expatriates in Rockville, Maryland, but has since moved its head office to Dubai. It initially organized most of its operations from abroad, but as it has become involved in creating a Somali telecommunications infrastructure, it has created satellite companies in Somaliland and Puntland (where there is functioning commercial law) and established ad hoc business networks in central Somalia. It's often hard to tell what makes certain cultural groups succeed in business, but in the Somalis' case, their traditional attitudes toward mobility may be part of the reason why they can establish themselves quickly in new countries and adapt to the anarchic conditions in their homeland.

 

What remains to be seen is how the growing Somali commercial diaspora will influence the future development of Somalia. Merchant diasporas don't always invest heavily in their homelands and even those that do, often stay out of local political life. Those that do involve themselves in homeland politics sometimes have a negative impact; in several countries, hard-line nationalist groups are reinforced with diaspora money and political support. Others avoid these pitfalls, though, and the Somali business community, which has become increasingly politically organized over the past three years, has a chance to make a positive impact. As members of a relatively new diaspora, the Somali expatriates retain strong ties to the homeland and might be more inclined to invest in it than second or third-generation emigrants would be. The Somali diaspora is also broadly representative of the country rather than being confined to particular ethnic or interest groups, and would hence play a less partisan role in national reconstruction. In many cases, the business community in Somalia itself has taken a leading role in mediating conflict, and if stability ever returns to the center and south of the country, the global Somali comerce created by the civil war may ironically play a part in the reconstruction.

 

 

Posted by jonathan at August 25, 2006 06:09 PM in Africa - Society | TrackBack

 

Comments

For some reason (sponsorship by refugee aid agencies?) many of the Somalis in the United States have settled in unlikely, far-flung locations, such as smaller towns in Maine and Minnesota.

 

Posted by: Peter at August 25, 2006 09:48 PM

If the settlement patterns for Somali Bantu refugees hold true for Somalis as a whole, then the original dispersion was an arrangement between the US State Department and the aid agencies. These days, though, Minneapolis is a draw in its own right, given that it has the largest concentration of Somalis in North America (20,000) and the most communal institutions and services.

 

Hmmm. It seems that Minnesota is the Scandinavia of North America in more ways than one - not only does it have a large ethnic Scandinavian population, but it has played host to a disproportionate number of refugees. I wonder how long it will be before there are Somali-Laotian marriages.

 

 

Posted by: Jonathan Edelstein at August 26, 2006 04:51 PM

Nice write up Jonathan! Great take on an interesting topic.

 

I have spent a reasonable ammount of time with the diaspora in the gulf and the new generation is highly motivated, increasingly educated and many are quite liberal. It is not hard to see why they will be so important in the rebuilding of the horn region.

 

I used to coach in a soccer league in the Twin Cities based on community centers and the Hmong-Somali matches were fierce!

 

It is worth pointing out that the somali diaspora reaches further back than european colonialism. East African labor (often slave or mercinary) was used in the Gulf and in India (there was even an African descendant ruler there at one time). In India today there are communities (often called Sidi or Habashi, the term in arabic for the horn region) of African heritage.

 

Posted by: Laith at August 26, 2006 05:28 PM

I don't know if I agree with what you wrote about Somalis being treated like S. Asians in the Gulf.

 

There has been considerable variation in the Gulf. S. Asians in Bahrain have often been able to obtain citizenship, but not so in say Qatar in Saudi. On the other hand Somali (or other horn groups) have been able to obtain citizenship in Qatar or Saudi (not across the board, but in more than a few instances).

 

Also, a recent article on the refugees in Yemen.

 

 

Posted by: Laith at August 26, 2006 05:36 PM

It is not hard to see why they will be so important in the rebuilding of the horn region.

 

There's also the fact that (a) most members of the diaspora are first or second-generation and still think of Somalia as home; and (b) they come from all clans and hence aren't tied to the political or economic interests of a particular clan.

 

Not all of them will go back, of course. The really amazing thing about the Somalis is that, as far as I know, they're Africa's first truly global merchant diaspora. They aren't the only Africans who have become commercial migrants - the Igbo and Luba have established a business presence in neighboring countries, and the Mourides of Senegal have internationalized to a considerable extent - but none of these have become as far-flung or created the depth of networks that the Somalis have. The Somalis are taking their place alongside European and Asian merchant tribes like the Jews, Armenians and Greeks.

 

Anyway, the Somalis rock. If the country can ever put itself back together, it won't be long before its neighbors start going there to look for work.

 

It is worth pointing out that the somali diaspora reaches further back than european colonialism [...] In India today there are communities (often called Sidi or Habashi, the term in arabic for the horn region) of African heritage.

 

Interesting. One thing I've been learning recently is that there was a great deal more back-and-forth movement between East Africa, India and the Arab world than many people realize. Certainly, there was more such movement than hard-core nationalists in these countries would like to admit! I sometimes wonder whether, given the right conditions, the western Indian Ocean could have equaled the Mediterranean as a highway of ideas.

 

Do the African-origin communities in India have any connection to the modern diaspora, or were they assimilated into the caste system like the Indian Jews were?

 

I don't know if I agree with what you wrote about Somalis being treated like S. Asians in the Gulf [...] Somali (or other horn groups) have been able to obtain citizenship in Qatar or Saudi (not across the board, but in more than a few instances).

 

Point. When I wrote that Somalis in the Gulf were following the South Asian track, I was referring mainly to their economic progress - i.e., that the first Somalis arrived as contract laborers, with the ones who stayed becoming small businessmen and eventually big businessmen/professionals. Their political and social progress is, as you say, another story.

 

Out of curiosity, why do the Somalis have an easier time than the South Asians in obtaining nationality? Is it that they're considered less of a threat to the politically dominant groups, or is it that they're regarded as closer to Arab culture? And have they been able to obtain nationality in the UAE?

 

 

Posted by: Jonathan Edelstein at August 27, 2006 05:41 PM

I agree with you, the Somali diaspora is a fascinating one. It gets complicated with the difference between somali ethnicity and somali nation-state though. It will be interesting to see how these concepts change over time. Part of what makes it interesting though. The country will probably benefit the most if it can mobalize a broad concept of somali-ness.

 

I wonder if the traditional money transfer systems have also played a role in keeping the diaspora symbollically connected to the homeland.

 

I have no idea why S. Asians and E. Africans have been able to assimialte with more/less ease in different GCC countires. I don't think either had had much luck in the UAE though (just my impression on that one). I know in Bahrain it has to do with attracting Sunnis to be on the police force (rather than local Shia), but as for Saudi I am not sure.

 

I think the Indian Ocena is one of the most fascinating places in terms of cultural exchange. Academics are just starting to scratch the surface and some of the groups in the region are opening up to their shared history. I could go on all day about this subject

 

Here is an essay about Africans in India. The African-Indians have had a rough go of it. I have heard of them being harrased and some were killed in the Gujarat riots.

 

Once again, great topic!

 

Posted by: Laith at August 28, 2006 04:56 AM

The Indian Ocean actually could compare very favorably with the Med as far as trade and movement goes. The Arabs did quite a bit of trading, there was even a time when the chinese came calling before their great turn inward.

 

The big question about international Somali groups going back into the country is how they will be accepted by the various factions there. I expect the Moslem extremist groups wouldn't neccesarily welcome them and the other "warlords" might just view them as competition.

But it will be interesting to watch.

 

Posted by: exmi at August 28, 2006 11:15 AM

There's a lot on the web about Africans in India.

This Canadian-Resident UAE-raised Indian-educated Somalilander has a little on his blog.

 

Posted by: Ikram at August 28, 2006 01:13 PM

Laith:

 

It gets complicated with the difference between somali ethnicity and somali nation-state though [...] The country will probably benefit the most if it can mobalize a broad concept of somali-ness.

 

From what I understand, the question of Somali identity tends to pull in two opposite directions. On the one hand, there's the fragmentation into clans and subclans, which contributed to the Somaliland secession as well as the quasi-genocidal acts that took place during the civil war. On the other hand, there's a strong thread of pan-Somali nationalism, as supported by those who want to reopen the ****** issue or assimilate Djibouti with its Afar minority.

 

Each of these poses an obvious potential for problems if taken too far. The clan fragmentation may prevent - and has prevented - the formation of a unified state in Somalia proper. An inclusive nationalism is clearly an antidote to this tendency. At the same time, an overly inclusive nationalism could easily shade into irredentism and lead to war with Ethiopia, Somaliland and Djibouti. A number of leading UIC figures appear to be infected with pan-Somali irredentism and this, even more than their religious ideology, may prove destabilizing to the state they're trying to create. The challenge is to create a national identity that is inclusive enough to encompass all clans (as well as the Bantu-speaking minorities) without being revanchist, which isn't always an easy thing to do.

 

I wonder if the traditional money transfer systems have also played a role in keeping the diaspora symbollically connected to the homeland.

 

I hadn't thought about this, but it could very well be true. If there's one thing that all the merchant diasporas seem to have in common, it's the existence of transnational networks for conducting business, sharing capital and transferring expertise. Sometimes this is augmented by family structures (as with the overseas Chinese) or religious ideology (as with the Mourides), but the network aspect seems to be universal. Maybe this is part of the reason why groups like the Somalis, Lebanese and Gujaratis form global commercial diasporas while others like the Filipinos (who have migrated at least as widely) generally don't.

 

Here is an essay about Africans in India. The African-Indians have had a rough go of it.

 

Were they targeted specifically as Africans, or as Muslims? The African-Indians seem to have ended up mostly on the Muslim side of the religious divide, which may be a more important factor than racial construction in determining their social status.

 

Exmi:

 

The big question about international Somali groups going back into the country is how they will be accepted by the various factions there.

 

That's definitely a factor, and the expats' chance of having influence will be better if some kind of political pluralism (such as already exists in Somaliland) is established in Somalia proper. Even without that, though, it might be possible for the commercial diaspora to operate in an Islamist or warlord-controlled state as long as it doesn't engage in political competition with the government. The most important factor will probably be the degree of public corruption and crony capitalism rather than the ideology of the state.

 

Ikram:

 

This Canadian-Resident UAE-raised Indian-educated Somalilander

 

He's the diaspora right there, isn't he? Thanks for the link!

 

 

Posted by: Jonathan Edelstein at August 28, 2006 05:36 PM

About the issue of 'ethnicities,' a little fact, please: Somalis in general do not have ethnic differences, but clans and sub-clans, overall united by the Somali ethnic.

 

There are some minorities like Arabs and Bantu, the majority of the population belong the ethnic Somali. [The Somali word itself, Somalis believe, derived from the patriarch 'Samaale,' the common father Somalis share.]

 

And univerally, the majority Somalis believe the unity of the five regions divided by the European colonials, and represented by the white star in the flag, is sacrosant that one day must be achieved, not an idea confined to newly powerful Islamic Courts.

[Centurion]

Sharmarkee, can you supply the source of this article?

[Sharmarkee]

^^

 

Centurion,

 

There you are,here it's the source

 

The Source