Breakaway Somaliland entity targets investors

[Xaaji Xunjuf]

Breakaway Somaliland entity targets investors

 

Fri Feb 24, 2012 4:20pm

 

LONDON (Reuters) - The breakaway enclave of Somaliland, which boasts oil and gas potential, has set up a UK-linked corporation to act as an entry point for investors concerned the Somali territory's lack of international recognition would stop contracts being enforced.

 

On a visit to London to attend a conference on Somalia, President Ahmed Mohamed Silanyo told Reuters that the purpose of the Somaliland Development Corporation was to "to attract companies and institutions which want to invest in our country."

 

"Since we are not a recognised country, insurance is always a difficult problem in Somaliland so if this can help with that, it would be useful."

 

Somaliland declared independence from Somalia in 1991 and has enjoyed relative stability compared to the rest of Somalia, including the holding of a series of peaceful general elections, but remains unrecognised internationally.

 

Silanyo did not indicate what economic sectors he wished investors to target. But energy and mining minister Hussein Abdi Dualeh said in November the northern enclave had hydrocarbon potential with a geology similar to basins containing 9 billion barrels across the Gulf of Aden.

 

A number of big oil companies with permits to operate there left what is now Somaliland in the late 1980s and declared force majeure during Somalia's escalating civil conflict.

 

Several foreign banks have expressed interest in operating in Somaliland where they are keen to capitalise on its untapped market potential. Somaliland has no formal banking sector and its people rely heavily on remittances from diaspora communities in Europe, North America and the United Arab Emirates, as there are no ATMs or loan facilities.

 

A briefing paper distributed to journalists on the sidelines of the London conference said that despite Somaliland's "achievements in stability and democracy, international donors cannot deal directly with its government, and foreign investors face uncertainty about whether contracts - the basis of secure business - can be enforced".

[ElPunto]

How is the status of Somaliland make it any different from PL? They managed to attract oil prospecting and drilling firms to agree on contracts without having a corporation etc. Might as well move on this issue quickly - all Somalis need non-aid revenues desperately.

[Xaaji Xunjuf]

^^ The Garowe clan enclave used the TFG Cabdilahi yusuf approved the range resources company when he was the president of the TFG to drill oil in the Garowe clan enclave. Somaliland is a whole different story El punto.

[ElPunto]

A/Y approved the 50-50 sharing with TFG. He didn't approve the particular company or its contracts. Tell the Hargeisa clan enclave to catch up with their neighbours.

[The Sage]

^^^ That's funny ElPunto, last time I checked the budget of the Somaliland government was more than 2 times larger than Puntland and 9 times larger than the TFG's. If anything PL and everyone else needs to catch up to Somaliland.

 

-Somaliland: $90 million (http://somalilandpress.com/somaliland-to-double-revenue-21357)

-Puntland: $38.5 million (http://www.somaliaonline.com/community/showthread.php/60553-Puntland-Budget-2012.-38.5-Million)

-TFG: $11 million (http://somalitalkradio.com/2010/aug/tfg_report_2009.pdf)

[The Sage]

"Silanyo did not indicate what economic sectors he wished investors to target"

 

I think its a smart move not to alienate any industries from investing in Somaliland. Instead of targeting just one like the energy sector, looks like Silanyo wants to attract a diverse portfolio of investments.

[Dr_Osman]

How does somaliland have $90 million budget when their sole economic lifeline is berbera port which is alot more inactive then Bosaso. Doesnt add up at all. Plus why isn't that $90 million seen in their ministries and parliamentarian buildings, local projects, and army? look at their parliament its ten times going to less grand then Puntland's, they only have about 3 ministries that are designed well, their militia in buhodle its rag-tag at best and if u look at puntland well lets not even go there its has an airforce!!!

 

So $90 million budget is hearsay online but in reality its no more then $15 million by judging on whats on the ground and as even reuter admits its remittance based society it doesnt have banks or anything of use other then diaspora building houses to collect pension welfare from their host nations back at home.

 

As for oil the basins in yemen doesnt connect with somaliland. Look at closely where the basins are located in yemen and follow a line through to somalia thats where the oil is.

 

You have to remember somaliland has been around for 20 years, Puntland 14 years and we already outdoing them in pretty much every field of importance. Business= Puntland..Military=Puntland..Oil= Puntland...Governance=Somaliland but Puntland is catching up as can be seen by building huge parliament and presidential palace and building more modern ministries..International Relations= Puntland...Diaspora activeness= Somaliland...Education= Puntland...Health= Puntland..Job Opportunities= Puntland...Tourism= Even...Security= Somaliland...fishery= Puntland...foreign investments= puntland

 

In most fields puntland is already winning and being a much younger state its just going to grow further

[ElPunto]

^The point was that prospecting for oil/gas isn't contingent on recognition or a corporation. If they want that to happen they have plenty of inducements to offer players in that arena.

 

If you think that the murky finances of these entities can be easily ascertained and compared your handle shouldn't be the sage.

 

For your information:

 

Somaliland’s annual government budget is currently between 40 and 48 Million US$. Approximately 5 % goes to education, 3 % to health and 30 % to defence. Most of the revenue is created by the port of Berbera. (2010)

 

http://pelastakaalapset-fi-bin.directo.fi/@Bin/4154d6177260f2255e72c6d504d23373/1330137376/application/pdf/270765/Somaliland%20CRSA%202010%20SUMMARY%20March%202011.pdf

 

“Maamulka M**********a Miisaaniyadoodu Waa Dhawr Iyo Afarta Milyan, Teenuna Meelahaas Ayey Cago-Cagaynaysaa, Ma Naqaano Inagu Sida Lacag Loo Sameeyo, Sababta Oo Ah Waxa Caqliga Saliimka Ahi Garan Karaa Hadii Reer S/Land Loo Jabiyo Cashuurta Inay Dhaqaale Badan Soo Xarayn Lahaayeen” M. Da’ud (Somaliland official)

 

http://www.haatuf.net/2009files/3355.html

[Dr_Osman]

Punto, sxb i dont think so budget waxaa laga keena economic lifeline like airports and ports. The only active airport in Somaliland is hargeisa and berbera and the port is berbera...The port is long dead as far as activities is concerned and no activities means no revenue. 80% of their money is gone if that lifeline is not working. So when can u get $50 million budget if ur lifeline is not operational and being outdone by Bosaso? if they have $50 million budget puntland will need to be double cause of the activities at its port

[Dr_Osman]

 

That the map of the onshore oil in Somalia as far as northern Somalia is concerned. as can be seen clearly that 70% of it falls into Puntland territories. Then their is the offshore oil, u must all remember that yemen and somalia were once connected so where you think that oil went when the red sea and indian ocean formed? that seabed is rich of oil and the oil companies are smart they leave the biggest for last.

 

The only best chance for somaliland is the guban basin and some offshore of that area, its like daror at best. Meel kale maba ugu jirto. Where as puntland has daror basin, the nugal basin, and the mudug basin. People forget that in 1993 petrona study made it clear mudug is the most rich in oil in Somalia. Plus we also dominate the coastline we own half of it in somalia and so most of the offshore is going to be Puntland also.

 

Everyone knows Puntland is the oil producing region. Somaliland dont waste your time you wont have the revenues pland will reap in from its oil you will only have at best 5% of what puntland can reap in cause dhul baxad weyn baan degna anagu meel yar ma degno which means heaps of oil

[The Sage]

ElPunto;794535 wrote:

Somaliland’s annual government budget is currently between 40 and 48 Million US$. Approximately 5 % goes to education, 3 % to health and 30 % to defence. Most of the revenue is created by the port of Berbera. (2010)

]

In correct El Punto. When the new administration was elected in 2010, the finance ministry was tasked to become more stringent with tax collection and tax evasion. As a result the budget was increased from $50 million to $90 million for the year 2011. It is not the $40-48 million cited by you.

 

The $90 million is cited on pg.282 of Somaliland's newly released National Development Plan that was jointly drafted by the Somaliland government and the UNDP. (http://slministryofplanning.org/images/nationl_plan/ndp.pdf)

 

The revenue collection reforms are cited in this article where it states "Their forecast will see the annual budget almost double from last year’s $50 million to $90 million under the new government. The government says it will not increase taxes but instead will be more productive in collecting, at the moment there are too many holes in the current system."

(http://somalilandpress.com/somaliland-launches-public-financial-management-reforms-20712)

 

And Dr. Osman, instead of writing baseless comments out of jealously like "So $90 million budget is hearsay online but in reality its no more then $15 million by judging on whats on the ground" how about you cite some facts and figures instead.

[The Sage]

In addition to this, between 2012-2016, the Somaliland annual budget will increase to $150 million USD .

 

"Over the NDP period, the government projects to increase tax revenues from US$90 to US$150 million." pg.283 of the NDP

 

(http://slministryofplanning.org/images/nationl_plan/ndp.pdf)

[Freedom]

Dr keep crying oil in our region and you can spin crazy talk all u like loool

[burahadeer]