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                       Puntland economic protection

Puntland
Area 2500km
Coastline 1600km
Climate Moderate
Population estimate 3000,000
Geographical location between red sea and Indian Ocean Puntland

system of government has the dimension of parliament, judiciary and executive.

Background

The dissolution of Somali central government in 1991, was followed by eternal anarchy in which the law and the order were abolished, thus the civil war broke out through the country, which resulted in, heavy casualties-loss of lives and damages.

People were classified by according to their clans and when the major cosmopolitan cities have been overrun by the natives the other residents tribes scattered across the neighboring countries: Europe, USA and Middle East. In certain places other invaders conquered the native, through out the country massive displaced people circuited as each family headed on to the direction of their original birth districts for protection. The matter was probably comparative to that of Israel Diaspora in 538 BC, consequently, the country split in to smaller clan based parts controlled by new warlords who have been created out of the ruins.

Unarmed civilians were suffered in the hands of armed robberies, properties were plundered, war atrocities joined with the normal live killing and violence became every day occurrences, Somalia appeared land of bloodshed and terror, warlords failed to agree and 15 national reconciliation meetings held in aboard were ended with out results. This dire-situation reminded the Somali people where ever they are: the importance of government restoration, in the northern eastern regions between” 1994-1997 the public clamor was in favor of local authorities formation, such strong public desire was the rationale reasons behind the establishments of Puntland state of Somalia.

Five regions came together 1998 in Garowe who have already close ties, of consanguinity the delegates at Garowe decided to establish a regional system of government called Puntland state of Somalia, the name of Puntland derived from ancient Egyptians during Queen (hapseshut) of pharaoh Era, who had commercial links with north eastern Somalia and southern Arabia.

The new government soon inaugurated with economic conditions and political crisis between the oppositions groups and the government’s leaders, the quarrel developed at the inception date was ended in 30 may 2003, when the two sides signed power sharing agreements in Bosaso. The agreements, was historical one and milestone for the Puntland’s economic development and security stability had set the pattern for the other Somali contesting groups to follow and the peace credit of Puntland was due to general Ade muse, the current president of puntland.

Human activities

Puntland is a small state of Somalia with fewer natural resource, the only
existing human activities is trading movement initiated by wide-ranged
variety of business communities whose taking advantage from privatization process instituted by the government The government has no much interference in the private sectors but has the role of facilitator and provides with limited supports to private sector developments, in this paper especial emphasis is placing on the value and functions of the ministry of commerce and industries.
1. The role of the ministry is that of catalyst and facilitator for private
sectors in electrifying and up grading business growth in puntland.
2. To identify actions and explore solution for developing private sectors
that contributes decent jobs, and livelihood to reduce poverty and unemployment.
3. To organize a strong democratic institutional umbrellas covering of all
business groups in puntland who reads and baits the desired interests and priority need s of the successful private sectors.
4. Other roles of the ministry are to investigate external market place that
proves the real value of our resources.
5. The ministry of commerce and industry is to architect and implement a
national campaign to raise public-private sector awareness to hold trading exhibitions for local resources, which helps the purchasing power to grow up.
6. To put forward, an overall puntland economic policy and planning
strategy.
7. Implementation of law #14 concerning about trading license and relevant
documents.
8. Skill trading for the staffs of the ministry, the chamber and business
organizations to up grade of their standards.
9. In encouraging our business communities to establish small and medium
size industries of which empowers our local resources, such as meet, milk, blood, bones and skins in order to reach the visible signs of economic development by reducing imports and increasing exports goods.
10. To rehabilitate the collapsed industries owned by the former government.


Achievement

1. Ministry of commerce and industries has succeeded to establish an
operational offices and sub-offices through the five regions composed of puntland state of Somalia.
2. Registered of local traders and expanded all necessary services in to the
regions and provided with trading certificates permit forms and trade mark.
3. Established of chamber of commerce with six related umbrellas
participated by different business groups, including marine resources, livestock, industries, frankincense, import/export umbrellas and general assembly and free elections of the chamber to be hold at the earliest opportunities of which its contribution has forecasted an economic developments.
4. Mobilized business communities to create small and medium size industries
and to encourage them by making discounts and other custom duties, in spite of this an oriented business people implement many small scale industries in puntland.
5. Delegates from ministry of commerce and industries toured to several
countries seeking for new market places, and other trade aims who entered into memorandum agreements with certain countries such as Ethiopia, Yemen, Emirates, Malaysia and Sudan.
6. The ministry of commerce and industries has employed of 39 persons who
are direct beneficiaries of punland institution and working now in the regions.
7. The ministry of commerce and industries deals with the UN aid agencies
operates in puntland World Bank, and other NGO’s for developments project implementing in puntland, and There are an on going assessments through puntland state carrying out by JNA concerns for how private-public sectors partnership can work together.

Challenges

1. First of all, lack of facilitating car and transport services.
2. Missing salaries for months or years, which greatly demoralized the
ambition or prospect hope of the workers.
3. With little or no collaboration among the puntland ministries in general
and productive section ministries in particular.
4. Absent of encouraging allowance planned to boost the moral of workers.
5. Difficulties meets with the finance ministry to pay promptly even the
lawful 7% reduction of the total amount received by the bank, regarded more helpful to the workers.
6. Exiting law #14 concerns with trading license indicates serious imbalance
when compared to the current situation of puntland trade and not in equilibrium, so that it required redefining or making an amendment.
7. Due to the lack of suitable places and conferences halls, it became
difficult to hold any panel business discussions on the issue of the puntland trade promotion and economic development out lines.
8. To increase the value of puntland trading system and make it more
reliable or attractive by the attention of the external investors, puntland commercial and investment laws must formulate soon, of which became formidable resistance for foreign traders to join with puntland for having joint venture companies.
9. Big stores owned by the former frankincense agency must evacuate the
squatters occupying since 1991, in order to rehabilitate and make it use by the ministry of commerce and industries.
10. Quality control obligation has not been yet carried out due to lack of
laboratory analysis hygienic services, skilled men, etc.

Livestock health care

Livestock is the live line and economic backbone of the Somali people in general, and puntland in a particular. There fore, to make puntland economy more efficiency and effective one it recommended, to improving, up grade and simplify our livestock working methods.

Livestock protection: livestock needs to be given more careful, consideration for protection of their lives and prevent from deadly infectious diseases that kill more animals as well as droughts.

• Prevention of diseases: from being spread out can be done by mobile
veterinary doctors through the rural areas where animals are concentrating by examining and controlling of animal healthy conditions, especially in the remote areas.
• The second method to protect animal from diseases before it getting in by
ever ready medicine supplies and awareness raising about animal healthy situation in the nomadic societies.

Drought prevention

Drought is a natural devastation and it is inevitable to happen and when rains delays from expected time a severe drought is experienced in spite of that, we can make it less severe, and alleviate it’s hard ships by the followed methods.

 Prevention of soil erosion and sand dunes.
 Forest planting and guard against fires.
 Digging more water wells and to stop flooding water by dams
 Complete environment protection.
 Restoration of “no” grazing land for future use by demarcating
lines.

Loading livestock on vehicles

 Vehicle load livestock from departure point should load according
to its capacity; overloading may cause intercepted death on animals.
 At least one or two holding grounds has to establish at the areas
between the departure point and final destination intended to rest animals one or two days before coming down to the port of exportation.
 Quarantine and marshal yard fence are to set up around the port
areas for physical and blood examine in order to hold back all none quality sale animals for rehabilitation and treatment.

Exporting moment

 Selected quality sale, and healthy animals are allowed to export
 Transport vessels must also load according to its capacities in
responsive manner.
 Puntland livestock’s sold out bellow the market value or even
prices less than it’s costs due to the rushing shipment in to small market place which resulted in, heavy losses on livestock traders with out compensation and several gone outs ceased to trading activities.
 In the above mentioned problem, ministry of commerce and industries
proposing, to space on livestock shipment in which the second batch of livestock export should postpone for few days until the first was sold out in the market places.
 To unite all smaller livestock traders in two or three bigger
companies, regarded important for livestock value and economic development.


Frankincense tree

Frankincense is a tall and long-lasting type of tree having thick central wooden stem it’s trunk from which branches grow usually bearing leaves that animals eats during dry season. Frankincense grow on a hard and un accessible rocks from mountainous areas, it has no deep-earthling roots has delicate branches that easy to flatten or broken and when the worker climb up and grapple his hand with the tree. In this way many workers lost accidentally their lives.

Frankincense produces type of sweet-smelling gum and has commercial value it’s trading activities had known for many centuries. In puntland livelihood of large number of the local people relied upon the production of the frankincense and has a great role of puntland economic development, thousands of tones of frankincense exports every year mainly to the gulf countries, China and Europe. In prewar period the price of 1KG of the product was $60, in the external market value, to day price of one KG of the product is $10 –15, so the apparent price deference between the past and present time consequent upon the absent of central government role and disunited based producers and traders on frankincense products. The government has not been initiated any effective measures to upgrade the value of frankincense in this regards, the ministry of commerce and industries is calling upon the frankincense traders or producers to unite under one bigger company which most traders and producers joined with, and became shareholders. This consortium company with the consultation of government can explore solution, which prevents losses from frankincense traders and producers.

Puntland fishing activities and pirate ships

Puntland has 1600km2 of coastline, which is abundant with fishes and other natural marine resources, but after the collapse of Somali central government in 1991 the coast left un guard against foreign intruders. And when the coast remained with out own, thousands of pirate ships equipped with heavy trawlers and other un lawful fishing instruments has widely trotted in to the puntland territorial possession rights of the sea water .the pirate ships removes all types of fishes with out indiscriminating manner, some of the pirate ships catches fishes alive, and replant to their sea water in which fishes has already been depleted, in this smuggle way of illegal fishing began in 1991, and still continued to prevail as large quantities of fresh fishes being stolen from puntland off- Shores, puntland authorities receives various complaints from local fishermen concern with the damage done by the illegal fisher ships.

Puntland exports great quantities of fish types such as lop esters, dried fishes, shark vines and tuna in which most countries of the world are interesting to buy.

In Lasqorey district there is a medium size fish factory that produces and processes great quantities of tuna fish, the product of lasqorey fish factory reaches commercial level and its cunning tuna permeate through the country as well as out side world. There also an on going building of Habo fish factory of which puntland people will take advantage of employees that will reduce poverty and un employment as well as economic growth.

Recommend

1. Puntland off-shores must free of illegal fishing and pirate ships
2. To assist of local fishermen, by supplying of necessary fishing
apparatus, like nets and fishing boats etc.
3. To increase the number of fishing factories in puntland
4. To explore a new market places for puntland fishing produce etc.

Puntland industrial section

Industrial policy is to increase exports and decrease the imports.
Industries are the parts of private sector and the government of puntland has no much interferences, the role of the government on industries is to extend of any possible support in view of developing puntlands small and medium size of industries which accommodates puntland resources such as meat, milk, bones, blood and skins. The ministry of commerce and industries urging to all local businessmen to create of industries and the authority contribution is to make discount of taxation and other facilities for encouragement and provide with trading license, the government also scrutinizing industries in many aspects, including sanitary conditions, labour skills, row materials received, production per day, and producing quality goods etc. the government also registered the number of industries has already been implemented in punland.
In Bosaso 45 small industries which produced different quality of goods In Garowe 5 small industries In Galka’ayo 17 small industries, which produces refining water, electricity generators and other sweet beverages. Industries of puntland are growing day by day.

Complains from industrial owners.

The ministry of commerce and industries receives complains from industrial owners. This complains are perfectly concern with low purchasing power and poor marketing because the production of local industries has plots out by the same qualities of importing goods. In spite of that, ministry of commerce and industries proposing to increase taxation on importing goods similar to that of the local industry’s products and then to impose on new taxations on qualities produces by the local industries these alternatives will give way to the confused industrial owners in puntland.


THANKS A LOT

General Director Of Ministry Of Commerce And Industry (Industrial
Department)
Abdirisak Nooh Mohamed

 

 

 

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