Why Somaliland Is Different

[Jacaylbaro]

An autonomous region of Somalia is working to make itself a new capital investment destination.

It faces daunting challenges.

Somaliland has a challenge: Many in the world do not know where it is. Many that do know associate it with marine piracy and lawlessness. And those who do not know where it is probably come from countries that do not recognize it. But with Coca-Cola opening a plant and the potential for a new Free Zone, the good times may be returning.

 

When in 1991 Somalia's central government collapsed, the area of Somaliland with its population of just under 4 million people decided to go it alone. It formed its own government and since then has been able to maintain stability, hold democratic elections and collect taxes within its territory.

 

But for the majority of foreign investors, it is still associated with such problems as piracy and radical Islam that beset Somalia. However, in its 21st year of self-rule, things appear to be changing.

 

Coca-Cola opened a $17-million bottling plant in Somaliland earlier this year. Located outside the Somaliland capital of Hargeysa, it was the biggest investment in the history of the autonomous region.

 

'Somaliland: Business deals so good, you'll feel like a pirate, too.' "

 

 

This year, the Somaliland government also passed a law establishing a central bank for the first time. "It is difficult to operate without any banking facilities," says Hassan Awcali. "If I was buying something up the road I'd have to carry the cash with me, which is no good for any large business deal." However, the establishment of a banking sector will make business transactions within the state significantly easier, he adds.

 

 

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[Jaamac1975]

The bigest investors in somaliland are the diaspora Somalilanders, it estimated by the last goverment of Riyaale that monthly the people from oustide of somaliland send 40 million back home. In economic terms that a 40 million dollars of trade imbalance regardless if somaliland produceses anything , in another word somaliland could invest 40 millions monthly in its own country.How?

 

1- The goverment should ban all private currency exchange and order all Xawalas to pay their customers in $$ as its sent from the outside.

 

2- Let the somaliland central bank do all exchanges of hard currencies, meaning the old grandmother will take her British p or $ and despoit in somaliland central bank and get her somaliland shillings.

 

3- monthly somaliland central bank would have at least 40 million in hard currency,

 

4- They could lend that out or they could purchase all the things they need to build the nation and creat jobs.

 

5- Somaliland should order all merchants to at least to deposit at least 20% of their profits with in somaliland banks.

 

simple as that, never mind 17 million by Coca-Cola , we send 40 million every month to somaliland and the local merchant who manupilate the exchange rate do the exchang and then depsot all that money outside the country and the rest they purchasse new products from the outside to sell . Its a vendor economy, dollars goes in and with in a month goes out with no benefit to the people put price infaltion.,

[Carafaat]

Jaamac1975;871548 wrote:

The bigest investors in somaliland are the diaspora Somalilanders, it estimated by the last goverment of Riyaale that monthly the people from oustide of somaliland send 40 million back home. In economic terms that a 40 million dollars of trade imbalance regardless if somaliland produceses anything , in another word somaliland could invest 40 millions monthly in its own country.How?

 

1- The goverment should ban all private currency exchange and order all Xawalas to pay their customers in $$ as its sent from the outside.

 

2- Let the somaliland central bank do all exchanges of hard currencies, meaning the old grandmother will take her British p or $ and despoit in somaliland central bank and get her somaliland shillings.

 

3- monthly somaliland central bank would have at least 40 million in hard currency,

 

4- They could lend that out or they could purchase all the things they need to build the nation and creat jobs.

 

5- Somaliland should order all merchants to at least to deposit at least 20% of their profits with in somaliland banks.

 

simple as that, never mind 17 million by Coca-Cola , we send 40 million every month to somaliland and the local merchant who manupilate the exchange rate do the exchang and then depsot all that money outside the country and the rest they purchasse new products from the outside to sell . Its a vendor economy, dollars goes in and with in a month goes out with no benefit to the people put price infaltion.,

 

To establish a so called Currency Board you will need a functioning central bank and a goverment that has a Economic, Fiscal and Monetary Policy. And this wont happen, as long as there is this mentality of 'inadeerkay' kursi ha la siiyo.

[NGONGE]

^^ What has the "inadeerkay kursi ha la siiyo" custom to do with having a functioning central bank or fiscal policies?

[Carafaat]

NGONGE;871607 wrote:

^^ What has the "inadeerkay kursi ha la siiyo" custom to do with having a functioning central bank or fiscal policies?

Inadeerkay ku fadhiya kursiga ma fahansana wax la dhaho fiscal policy, montary policy ama currency boards.

[NGONGE]

^^ Which kursi is that?

[STOIC]

Ngonge, Since the election of make-believe parliament in Somalia Carafat has changed his tune of being for Somaliweyn..Just look all his recent posts and you will see some sense of defeat as his Hiilqaraan friend put it in a new article in Aljazeera the very corrupt nature of leading up to the election of the new president.

[Carafaat]

NGONGE;871615 wrote:

^^ Which kursi is that?

Any kursi inadeero la keeno.

[Carafaat]

STOIC;871619 wrote:

Ngonge, Since the election of make-believe parliament in Somalia Carafat has changed his tune of being for Somaliweyn..Just look all his recent posts and you will see some sense of defeat as his Hiilqaraan friend put it in a new article in Aljazeera the very corrupt nature of leading up to the election of the new president.

STOIC, I am not that naive believing a non-clan based party would actually get elected in a clan based system.

[NGONGE]

^^ The big fuss is always made about the visible kurasi not the background ones. All the stuff you're talking about are usually done by the mandarins.

[Carafaat]

NGONGE;871622 wrote:

^^ The big fuss is always made about the visible kurasi not the background ones. All the stuff you're talking about are usually done by the mandarins.

Sxb, All kursi's are filled with inadeero's. How else would Qat merchants become Director Generals of Ministries.

Talking about Economic Policies, have you read Xirsi's latest decree on Free Trade. I wonder which 'manderin' wrote it.

[NGONGE]

^^ Xirsi can WRITE?

[Carafaat]

NGONGE;871624 wrote:

^^ Xirsi can WRITE?

Apparently he does. It was a short decree, it stated Suuqu wa xor.

[Jacaylbaro]

Must be another Xirsi then ,,,