Somaliland’s finance minister: We spent $1.5 million a day in the war

[𐒋𐒖𐒆𐒔𐒖𐒕𐒈]

I agree that $1.5 million per day seems very high but it is important to keep in mind that a single AK round costs $1. Ammo for heavier weapons is likely to be 3-5X more expensive. Somaliland also had to pay its soldiers, while SSC did not. This could partly explain why their costs are so much higher. War is expensive, when you crunch the numbers you can see how it can be $1.5 million a day.

Logical, and Dr Sacad A Shire is an economist familiar with hard numbers, yet still I am struggling to wrap said number round my elementary head.

Also, anyone that says that the entire SL army was not present outside Las Anod is lying. No one was spared. They were just beaten, flat out.

You mean, the claim that instead of their regular standing army, Bixi & Tani chose to ship off kids barely out of high school to the front to face the unforgiving Jamaahiirta bullets?

Oh that is their way of sedatingly lulling the weary public in Hargeysa to sleep at night, and spiking water wells in Burco with roofies to numb the pain.

 

[Magaffe]

100 percent fake. more likely answer is they borrowed a lot of money from businesses like dahabshiil then embezzled the money and need a way to explain where the money went. a modern tank cost around 4 to 8 million dollars if somaliland had 1.5 million to spent a day they would have had better arsenal. its not that difficult to get it from the black market.

How are somaliland to buy tanks? You know there is an arma embargo.

Even if they could off the black market it would be stupid expensive.

 

[Burqad]

How are somaliland to buy tanks? You know there is an arma embargo.

Even if they could off the black market it would be stupid expensive.

The arms embargo is meaningless and hurts the weak only.

 

[Magaffe]

The arms embargo is meaningless and hurts the weak only.

Do you thunk sland was buying tanks and heavy armour?

Surely you are joking.

Ill believe when I sre a T70 in las canood lmao.

 

[Dhiirane]

Do you thunk sland was buying tanks and heavy armour?

Surely you are joking.

Ill believe when I sre a T70 in las canood lmao.

Don't know about tanks but surely with the amount of money stated they could have bought better arsenal .

 

[Abaq]

@Kabtaanka @The Midlands Chinese roads now cost $1 million per km. The $300 million that he claims was spent on this war could have paid for the 175 km long Saylac-Cabdulqadir-Biyodidley road which connects to Ethiopia’s Dire Dawa-Dewele road. This road would have cost $175 million.

That leaves $125 million with which to build a basic port with 3-4 berths at Saylac and enough money leftover for one or two RTG cranes.

Somaliland would have replicated the Berbera Wajaale corridor and eaten big time into Djibouti’s 95% share of Ethiopia’s trade. The opportunity cost of this kind spending and borrowing is large. Ina Biixi is borrowing from Dahabshiil, Omaar, etc.. at crazy interest rates.

This will never happen as the Saylac-Cabdulqaadir corridor is a direct competitor with the Habar Awal owned & operated Berbera-Wajaale corridor. HA have no interest in using the revenue from Berbera port, Hargeisa, or the customs at Kalabaydh to help pay for the building of a competing Gadabursi corridor. Somaliland is not viable because the economic interests of people in Awdal are seen as directly threatning the livlihoods of the existing economic core.

And Ethiopia's communist legacy helps to turbo-charge this. Every dollar I send via xawaalad is taxed by a Habar Awal in Wajaale. This is one of the biggest sources of revenue for Habar Awal. If Ethiopia liberalised it's forex, they would lose this cash-cow

 

[Caaro]

100 percent fake. more likely answer is they borrowed a lot of money from businesses like dahabshiil then embezzled the money and need a way to explain where the money went. a modern tank cost around 4 to 8 million dollars if somaliland had 1.5 million to spent a day they would have had better arsenal. its not that difficult to get it from the black market.

Brother said it’s not that difficult to get tanks from the black market like he’s done it before lmao.

idk about everything else you said but that last part about tanks and buying it for 4-8 million dollars from the black market seems like you’re just talking out of your ass.

 

[Burqad]

Do you thunk sland was buying tanks and heavy armour?

Surely you are joking.

Ill believe when I sre a T70 in las canood lmao.

Not t-70 but t-50 or t-45 can be bought on the black market

 

[Hilmaam]

262k USD a quarter at las canod customs 1 usd=8750 somaliland shilling

 

[Hilmaam]

 

[𐒋𐒖𐒆𐒔𐒖𐒕𐒈]

And Ethiopia's communist legacy helps to turbo-charge this. Every dollar I send via xawaalad is taxed by a Habar Awal in Wajaale. This is one of the biggest sources of revenue for Habar Awal. If Ethiopia liberalised it's forex, they would lose this cash-cow

Is this true? Why through Wajaale?
I ask, for I remit funds to students in Jigjiga, and funds hit their a/cs straight.

 

[GaradShabeel]

Is this true? Why through Wajaale?
I ask, for I remit funds to students in Jigjiga, and funds hit their a/cs straight.

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[tyrannicalmanager]

Unbelievable! He admitted that SL spent $1-$2 million a day during the 6 month war in Sool.

No wonder these people are in shock. They really left nothing in the tank, that was all they had.

in dollars or shilling?

 

[Aurelian]

Unbelievable! He admitted that SL spent $1-$2 million a day during the 6 month war in Sool.

No wonder these people are in shock. They really left nothing in the tank, that was all they had.

The minister had a smile all the way. probably had some of these millions somewhere.

 

[𐒋𐒖𐒆𐒔𐒖𐒕𐒈]

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Thank you, that explains the back story. In other words, the .So banking model shall eventually upend financial markets in neighbouring countries, well post our getting our act together.

 

[GaradShabeel]

Thank you, that explains the back story. In other words, the .So banking model shall eventually upend financial markets in neighbouring countries, well post our getting our act together.

I think it will need to happen pretty soon as our accession into EAC is imminent. Which in turn will place a set of demands on us to reform the banking sector among other sectors, to reduce our informal economy, and thus align and regulate to meet regional and global standards.

 

[𐒋𐒖𐒆𐒔𐒖𐒕𐒈]

I think it will need to happen pretty soon as our accession into EAC is imminent. Which in turn will place a set of demands on us to reform the banking sector among other sectors, to reduce our informal economy, and thus align and regulate to meet regional and global standards.

Have the .So economists make the case, and explain as to the benefits to joining the EAC market?

 

[GaradShabeel]

Have the .So economists make the case, and explain as to the benefits to joining the EAC market?

To be honest with you, I'm not well versed with how Somali economists view EAC. I've mostly followed the political aspects in the process of joining the union.

Ideally, the biggest advantage from a regional union for Somalia would be if there were already a shared currency. It would've spared us the time consuming project, and uncertainty, of moving from a dollar based market to Somali Shilling, which needs to happen in due time. So far there's little insensitive from the Somali business sector to make the move.

Proponents of EAC argue that, with a trade bloc representing 500+ million people, that it would enable us to reach maximum potential of trade/economic growth as EAC will be viewed as one entity, economically speaking, removing all barriers between the nations.

This is great in theory, but one can argue that it's somewhat premature for Somalia. We're currently in the very beginning of the state building process, while other countries at a far advanced position, rendering us fragile while they are more robust in seeking their interest though this union. Frankly speaking, the FMS of Somalia today operate as different countries since each FMS has their own financial policies, taxes etc. and we haven't reached a consensus amongst us yet.

In any way, we are an import dependent country. Joining EAC means that other member countries may replace some of the goods we import from elsewhere. Which is great in a way as it will increase competitiveness and offer commodities at a lower price. The biggest worry is that we don't have any major industries to export to EAC in return. Resulting in a significant decrease in the share of domestic traders in our markets, who unfortunately may not have access to the same resources. Especially dealing with larger companies/conglomerates that we have so few off. On the flip-side, investors from EAC could play a vital role in the many untapped markets of Somalia, that today is held back by lack of resources.

The gov't therefore need to play an important role to reap the economic benefits of the union. This includes, but not limited to, accessing loans, both on their own and through EAC, (and development aid, if possible) to invest in high-growth industries, as well as our current 'niches' such as agriculture, fishing, livestock etc and thus increase our trade/export. We're also in dire need of infrastructure throughout the country, which could release unrealized economic potentials. Also, we have the longest coastline in the union and need to optimize the role our strategic location can play such as boosting EAC trade, in particular 'the East', through our shores. But overall, FGS needs to safeguard the interests of its citizens. And we should not let internal strifes, our biggest hurdle atm, get in the way of national interests.

Freedom of movement within EAC means that Somalis can easily use their entrepreneurial skills to move to the other countries and thrive. The Somali community in Nairobi is a testament to that. Since the standard of living is lower in Somalia, there's a worry that there could be brain drain heading south. This patter can be seen in EU, where eastern/southern Europeans have migrated in droves to the west and resulted in decreased economic performances in their countries of origin.

Sorry for this long read. Let me cut it short here. Regardless of whether Somali economists would argue in favor or against EAC, I highly doubt that FGS would change their mind. While already on the path now, as long as the gov't is proactive with a clear policy and firm in their agenda of economic prosperity, we could bear the fruits of the union to some extent, from an economic perspective. If not, then I'd be concerned that we may be on the loser end.

 

[Burqad]

EAC won’t happen.

 

[Abaq]

Is this true? Why through Wajaale?
I ask, for I remit funds to students in Jigjiga, and funds hit their a/cs straight.

@GaradShabeel basically explained it. The official rate is rubbish but the black market is controlled by Habar Awal businessmen in Wajaale. It's not an official tax but they basically command nearly all the market, giving them amazing returns. They are the Jews of DDS due to this setup