Business
Somali companies to invest $1 billion in Somaliland and Somalia
May 24, 2010 · 26 Comments
INSTANBUL (Somalilandpress) — Five Somali companies signed an agreement here on Sunday to establish a joint company providing much-needed electricity and gas infrastructure to the under- developed country. The agreement was signed at the sideline of the round table meeting after the closing of the United Nations’ Somalia Conference in Istanbul.
Sharif Ahmed Said, director of the Somalia Business Council, said: “this project will give Somali people the peace dividend that has eluded them for so long.”
The Trans-National Industrial Electricity and Gas Company will start with an investment of 1 billion US dollars from the partners and other investors.
The five companies, which asked to remain unnamed for the moment, will provide the initial 300 million dollars down payment. The five companies are all local, not international.
The remaining funding will be provided by individual, not institutional, investors and by the manufacturers themselves, Abdullahi Hussein, spokesman for one of the companies told Xinhua.
The company aims to implement the Somalia Peace Dividend Project, a labor intensive electricity and gas infrastructure program to provide these services for the new industrialization of Somalia, and will be carried out in two phases.
The first phase, expected to start in the next 6 months, will train and use the skills of young people to provide electricity to exclusive economic zones and communities.
A written press release said the workers will be able to improve their livelihood as they receive training to construct, install and manage the infrastructure, which will help “reduce poverty, find alternatives to looting, piracy and unnecessary violence and stabilize the country and bring lasting security and prosperity to Somalis.”
The second phase where factories will be established in specially designated economic zones for the local transformation or for fisheries, livestock, agriculture and mining industries, is expected to go live in 12-18 months, which Hussein admitted as ” optimistic.”
Overall, the project aims to provide training and employment opportunities for an initial 100,000 jobs throughout Somalia and Somaliland.
Hussein said security was not a concern for the project, adding that “tribal democracy .
Source: Xinhua | Monday, May 24, 2010
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Tags: Somalia, Somaliland, Trans-National Industrial Electricity and Gas Company
Readers Comments (26)
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I am sure business people of the two countries could put political issues aside and work together for the common good of their communities.
This is amazing news. With the endless bad news that comes out of Somalia/land … this is probably the best thing I've heard in years. 100,000 jobs? WOW. This is the kind of vision and unity we need …its great step in the right direction for all Somalis. Inshallah it will be a success ..and that we move forward instead of backwards.
The only way it could work is if they have a blue-print plan and one possible plan should be the projects should begin from two points at the same time.
I dont think they have a billion $ come on Somalia/Somaliland's gas and electricity industry is not even worth $200million. How many people live in urban cities, what are the population, what is the usage, forecast?
Somalia and Somaliland's entire GDP combined is $2.763 billion (2009 est.).
And gas and electricity represents no more than 3%
They are in la la land.
keyse
Are you Somali? why it upsets you any good news from somalia?
I guess he is just a negative dude haha. Personally, I am happy for any good news coming from back home regardless if its North or South. I just hope Al shabab has some business students amongst their foreign fighters:) otherwise the South might miss this opportunity. I know this might sound negative, but in all honesty people can not work if they are worried about getting caught by a stray bullet. Inshallah everything goes well.
If you call common sense hate than I am a hater. The entire Somalia and Somaliland's GPD is no more than $3 billion how can five companies come up with $1 billion? It's not logical in a society where 70% are nomads with no electricity or gas who burn matches and wood for cooking, heat and for light.
You can lie to some white kid in Istanbul but we Somalis know the truth.
Actually Keysa if you read before you blasted the article it didnt mention a timescale that the investment would occur across that may be $1billion across 50 yrs who knows? not to add that we are unaware of their assets and should not make assumtions but adopt a wait and see attitude in their place.
If im correct you do tend to be negative in many of your comments lets keep things constructive and not juts blast long awaited and promising plans that are so ambitiosly being generated,as it begs the question what are you doing fro your part?
It said next five years. Somalia is starving, where is the $1 billion?
Dahabshiil and Telesom are perhaps the largest Somali firms and they dont even have $200 million.
dahabshiil just opened a bank worth more thn 75 million as well as somtel company…get ur facts right mate..
Coday
Thank the lord for this gift, i hope that one day we all will live in peace. Stop hating and start loving
Lets wait and see. Nothing has materialised from previous exclamations like this. There was the $500 million that supposedly somaliland was earmarked for development, there were the Chinese and russians, there was the german cement plant…. nothing ever materialised.
This is different in that it is somali companies, and it not just the companies alone but apparently also other, and individual benefactors.
This is another embezzelment effort on the part of the Somali warlords(Puntland/Somalia) Somalilanders advised to stay away from such schemes or risk losing their money.
Any Somaliland approached for this "energy company" should never trust their money with such warlords its another scam.
Dont trust them and if you already "invested" pull your money and do something else.
I totally agree with kayse regarding this ''investment''. To anyone who knows a little about economics, this just a complete nonsense. Suppose these companies have got that amount of money and then invested it in Somalia and Somaliland according to there plans. Then who will be there customers as there are no significant industries to buy there commodities in bulk ? How many homes are there in Somalia/land who have the capacity to pay the appropriate prices for the conglomerate to recoup its initial investment? How will the companies generate the electricity and from where will they get the gas? If the gas is imported, how many Somalis are willing to pay the high international prices for energy? Do they plan to build power stations and what type – coal, gas, geothermal, tidal, solar, or perhaps nuclear? I don't think these guys are going to construct proper power plants as $1billion is not enough for the entire infustructue and services that is needed to support such industries. Constructing and maintaining such industries is not just about laying pipes and wires in the ground.
As samiir said, I think this whole thing is a scam so beware.
first of all somalia's territorial sovereignty extends from kenya to djibouti.
i am offended by the comments made by samiir by callin puntland and somalia warlords. well let me tell you some thing mate when you say somalia you mean somalia as whole including "somaliland" and there isn't such people as somalilanders. somaliland is not even a country it is a de facto region in somalia that was created by the WARLORDS who fought against peacufll country of somalia at the first place (SNM). so i don't understand why "somaliland" is any different to the rest of somalia
"who fought against peacufll country of somalia at the first place"
It might have been peaceful for you but it certainly wasn't for us, check your facts before you speak little kid. And the Puntland regime is a group of warlords who attempt to cause chaos and war from Somaliland to Mugdisho and beyond. They are xaasidiin.
Ahmed, I'm sorry to say bud, however, the individuals who started the formation of Somaliland were the reason why the south is deteriorated. Besides what happened – happened. If Somaliland wants to break off go ahead. Leave Sool, Sanaag, and Ayn. It doesn't belong to Somaliland it part of Somalia, most specifically Puntland. And watch Puntland will be the economic hub of the entire region.
am really happy for the success for all somali people
and am happy for them
first of all you don't know if i am a little kid and second of all, YES the SNM contributed a lot to commence the somali cival war they where the ones who fought against the prevouis somali governments in the northern regions of somalia, and your asking me to get my facts right let me tell you something mate my facts are right, but let me ask you something too, what makes somaliland any differenent to puntland in terms of warlords and bad governing? okay you got a point when your talking about the rest of somalia. i can say that the somaliland regime is full of warlords, it was the SNM who it descended from after all. at least puntland is working with the somali government to acheive an reasonable objective unlike the so called somaliland region. and if somaliland was an democratic country and was not run by warlords then why was the somaliland elections pushed back about 4 different times??????
Now Now, lets stop these arguments and lets be contructive . Any area at peace in Somalia should be supported , period!. We have had enough of killings, even if the current leaders are not upto the standard, we must not undermine the region.
For many years , all eyes were on Xamar, the Xamar people failed to Unite , for many reasons, we leave that to Allah to Guide them.And now please give the North a chance, at the end of day , where there is peace Somalia people will go. And Somaliland people have welcomed many of our Somalia brothers.
We need to stop the hatred ,if your other brothers are doing well and have sorted out their house you need to encourage them. Insha-Allah we should all want peace for all Somalia !
somaliland wax jira ma ahn
Why talk in terms of somalia, puntland and somaliland. The investment is for somalia. So that means all parts of somalia. I dont know why our brothers in the north talk about somalia and puntland as "them". It is mostly the young people who live abroad that talk this way. These people have no historical knowledge and want to use there ignorance and lack of national identity (identity crisis) to promote the dividence and hate troughout the somali people. We are all one. I love my brothers and sisters in the north. Its time to stop the wars and dividence of the somali people and unite all the somalis from djibouti to ogaden to puntland, somaliland, somalia and north kenya. Its the former colonial powers who divided and sold our land and country. Its now up to us somali people and only us to unite somalia. As for the 1 billion dollar investement. Im happy to hear this news. Energy is one of the most important sectors in wich somalia needs help. Somalias business is despite the war growing very fast. A good infrastructure and good energy supply is very important for the growth. I hope that somali businessmen and women also invest in infrastructure and it. It is very important for somalia (wich has a small but fast growing business) to focus on a certain strategy or sector and have a long term vision. Maybe that IT would be a good focus for somalia. Somalia is good in telecommunications and IT. It can look up to india wich economic growth is largely through IT
You're all wicked and less educated in terms of love and devotion to one's country. People move forward and seek change not to avenge with each others for something so prolonged that we failed to detect at first and had been there before some of you were not even born. My advice is to move on and rise and rise again, until lambs become lions. How can I find peace in me when I'm the one spitting the hate. I'm yet to see Somalia but I'm a damn ready to defend and protect it against all enemies domestic and foreign at all time by any means necessary.
I am Mr. Ali Usman Ali I work for union company
i also under the program solar option i member
of for that place i want to join somalia company
also i can pay per mounth $200 to support
somali union to afect the place it
Mr. Ali Usman Ali
in sha Allah when i get my university degree in invest banking i can go back home and help building up our economic and educational systems as this is key to supporting a good economy.i would also love to encourage more Somali people graduating from university to go home and help make the country stong in every aspect of the way!!!
loooooool….somaliland kullaha…u guys are not a country. you guys are a rebellious northern region…its been 20 years no one country recognizes your country…you think another 20 years will make a difrrence…but i like that you guys think ur a country..that means all u.n. money goes to the south and puntland…