Natural Resources of Somalia

Natural Resources of Somalia

Somalia is a country that is coming out of two decades of civil war, the two and a half decades of conflict, concentrated mainly in southern Somalia, and destroyed much of the country’s governance structure, economic infrastructure, and institutions. Following the collapse of the Siyad Barre government in January 1991, Somalia experienced deep cycles of internal conflict that fragmented the country, undermined legitimate institutions, and created widespread vulnerability. (World Bank).

Despite experiencing two decades of civil war, the country has maintained an informal economy, based mainly on livestock, remittance/money transfers from abroad, and telecommunications. In this report, we look at some of important sectors of Somali Natural Resources in detail.

Natural resources, both renewable and non-renewable, and ecosystem services are a part of the real wealth of nations. They are the natural capital out of which other forms of capital are made. They contribute towards fiscal revenue, income, and poverty reduction. Sectors related to natural resources use provide jobs and are often the basis of livelihoods in poorer communities in Somalia. Owing to this fundamental importance of natural resources, they must be managed sustainably. Somali government, private sectors and stakeholders must play the essential role in putting into place policies that ensure that resources contribute to the long-term economic development, and not only to short-term revenue generation. High-quality institutions in the present, and planning for the future, can turn the so-called ―resource curse‖ into an opportunity.

this reports will specifically focus on three productive sectors of Somali natural resources; 

Agriculture:

Agriculture is the most important economic sector. It accounts for about 65% of the GDP and employs 65% of the workforce. Also, it is perhaps the one sector that acts as the largest employer within Somalia, yet, the main economic activity is not only crop farming but livestock raising.

In terms of land mass; just 1.6% of Somalia's total land area is cultivated, and 69% is permanent pasture. Somalis have traditionally been nomads and thus associated with Pastoralism, this has meant that agricultural production has a long and comprehensive history within Somalia. The Somalis have traditionally engaged in rain-fed dry-land farming or in dry-land farming complemented by irrigation from the waters of the Shebelle and Jubba rivers or from collected rainwater. Corn, sorghum, beans, rice, vegetables, cotton, and sesame are grown by both methods. Somali and Italian farmers operating the banana farms practice more modern European-style techniques, as do some of the newly created Somali cooperatives. Yet, it was only under the Socialist Siad Barre regime that a system of state-led farms grew rapidly during the early 1970s and during the 1980s.

Commercial crops and agricultural produce such as; sugarcane are grown on irrigated land along the two rivers in the South; notably the Shabelle etc. In Somalia’s case; bananas constitute the nation's major commercial crop with major banana farms existing in Afgoia and other Southern regions.

According to FAO Somalia; there are four primary agricultural zones in Somalia:

1. Northwest in parts of Awdal and W. Galbeed - rainfed maize and sorghum with some livestock herdings.
2. Coastal Cowpea Belt Zone in Central and Southern Somalia.
3. Shabelle and Juba Riverine Valleys - rainfed and irrigated maize, with sesame cash crops.
4. Sorghum Belt in Bay and Bakool Region - rainfed sorghum with livestock production.

Livestock:

The livestock sector is the largest contributor to Somali livelihoods with over 65% of the population engaged in some way in the industry. Exports of livestock and their products account for 80 percent of exports in normal years but exports have been periodically interrupted by droughts and international bans such as the one imposed by Saudi Arabia in 2000.Inspite of this, livestock exports continue to be the largest traded commodity in Somalia.

Livestock is the backbone of the country’s economy and supports the largest production community of the Somali people who raise their animals under harsh production system- Pastoralism. Livestock production accounts for 60-65% of the gross domestic product (GDP). The year 2010 marked a milestone in Somalia’s livestock history as the country exported 4.3 million livestock, the highest figure ever recorded. Though this figure includes animals from southern Ethiopia and Djibouti, this makes Somalia’s livestock sector the largest contributor to most of the citizens' livelihoods.

Somali’s major livestock exports are sheep and goats, accounting for 91% of all animal exports. In 2010 a total of 7.352 million shoats were exported through the Berbera, Bosaso port (including from Ethiopian sources). Of this total, 1.612 million (69%) were exported between September and November for the Hajj festivities. Assuming an average export price of US$70, the estimated total value would be over US$360 million. With government taxes at around US$3.60 per head, this means tax revenue of around US$13.5 million, or 25% of the Somalia government’s total revenue.

With increased investment, smart regulation, infrastructure development, sector coordination and improved branding, the Somalia has ample opportunities to capitalize on the growth of the livestock sector in the Middle East and other regions of the Muslim world, while supporting the growing local demand.

Fishery

Somalia has the longest coastline on the mainland Africa. Prior to the start of the civil war in 1991, the country had a number of fishing hubs. Tuna, lobster, and other high value marine stock were harvested locally for the domestic and international seafood markets.

The Somali fishing industry has high potential for growth and job creation. Though it is not among the top three contributors to the country’s GDP, the Somali coast line is the longest in Africa and among the most blessed waters. According to the latest survey, some of the only fish stocks in the world that are actually “underfished” are in the deep waters off the Somali coast. Large schools of primarily tuna migrate from north to south and back along the east coast of Africa. It’s no doubt, home to an extensive list of fish species, including lobster, swordfish, shark, and many others.

The Somali fisheries resource remains largely under-exploited partly due to the absence of good infrastructure for post-harvest management of catches, despite the fact that there is growing local, regional and international demand for fish which could be exploited.Success will depend on exports, which in turn will depend on the ability of Somali producers to meet international standards for food safety (Oxfam).

Finally proper management and utilization of Somalis natural resources can drive Somalia to an economically sufficient nation hence i recommend the following approaches:

1. Plan for sustainable management of natural resources.
2. Manage revenues for the benefit of the present and future generations.
3. All revenues from natural resources must be disclosed in an easily accessible and timely manner.
4. Land management.
5. Governments and local companies should find additional means to develop sustainable sources of income.
6. Public participation.

Author: Mohamed Osman Abdulkadir

contact me using this address

+252616002014

mohamedshukri2@gmail.com

Mogadishu-Somalia