Starting a business in Somalia

[Thegoodshepherd]

Agriculture is probably the most profitable sector and the most needed.
If I had 70K now, I would buy a pump, a used backhoe and 300 acres of land on the Juba in Luuq, Gedo. That single farm can probably then produce more corn than 1,000 rainfed farmers. It would not even be that difficult, since there are no regulations, you can use as much water as you want and flood the hell out of that land. The only reason more people are not doing this is the security situation in both river valleys in Somalia.

 

[DiricLover]

How about outside a mosque?

but where exactly?

 

[Kanye]

It's going to be very difficult setting up the majority of businesses because a lot of the underlying infrastructure is missing. It'd be nice if people could start working towards building it but the obscene amount of start-up capital required poses the biggest problem. The safest way is to take the proven paths such as agriculture. The problem with this is that it just isn't innovative and doesn't help build other industries within Somalia.

 

[Deactivated]

Agriculture is probably the most profitable sector and the most needed.
If I had 70K now, I would buy a pump, a used backhoe and 300 acres of land on the Juba in Luuq, Gedo. That single farm can probably then produce more corn than 1,000 rainfed farmers. It would not even be that difficult, since there are no regulations, you can use as much water as you want and flood the hell out of that land. The only reason more people are not doing this is the security situation in both river valleys in Somalia.

The most insane thing is access to roads and infrastructure. A buddy of mine sent me pictures and told me, getting around is the worst thing ever.

Jubbaland is Massive!!! People think Somalia is small. But, the bullshit you go through as a farmer is so worth it.

 

[Lord Flacko]

The most insane thing is access to roads and infrastructure. A buddy of mine sent me pictures and told me, getting around is the worst thing ever.

Jubbaland is Massive!!! People think Somalia is small. But, the bullshit you go through as a farmer is so worth it.

That's where I'll be investing Insha'Allah. Know a guy (family friends & same clan) who's currently getting his trade license within building and construction. After that he plans to go to Uni in Germany or Norway and get a civil engineering degree. He's then going to work for a few years, save up some equity then start a construction company in Somalia. He's told me his plan and if he follows through I'll co-invest alongside him if I have the chance.

 

[Kanye]

That's where I'll be investing Insha'Allah. Know a guy (family friends & same clan) who's currently getting his trade license within building and construction. After that he plans to go to Uni in Germany or Norway and get a civil engineering degree. He's then going to work for a few years, save up some equity then start a construction company in Somalia. He's told me his plan and if he follows through I'll co-invest alongside him if I have the chance.

Masha Allah, some people out there hunting on an empty stomach. I remember reading about some cadaan millionaire buying cement factories through out Somalia and Afghanistan because construction is one of the first things to boom after the mist of uncertainty settles in war-torn places.

 

[Deactivated]

That's where I'll be investing Insha'Allah. Know a guy (family friends & same clan) who's currently getting his trade license within building and construction. After that he plans to go to Uni in Germany or Norway and get a civil engineering degree. He's then going to work for a few years, save up some equity then start a construction company in Somalia. He's told me his plan and if he follows through I'll co-invest alongside him if I have the chance.

You need to work together. The lone wolf mentality is not worth it.

Here's thought for starting a business in Somalia:

If they business can't create earning to cover flight costs from in and and out of the country it's not worth it.

Ex:
If you live in Canada and you can fly to Somalia once a month for 1 week to look over operations, than it's a good business.

Working with Somali's and creating a board of directors is the most overlooked way of handing business in Somalia.

You cannot operate alone. Failure will strike before your first quarter.

 

[Thegoodshepherd]

The most insane thing is access to roads and infrastructure. A buddy of mine sent me pictures and told me, getting around is the worst thing ever.

Jubbaland is Massive!!! People think Somalia is small. But, the bullshit you go through as a farmer is so worth it.

Jubaland is larger than most Somalis realize. Dolo in Gedo is closer to Borama than to Ras Kamboni!!

 

[Deactivated]

It's going to be very difficult setting up the majority of businesses because a lot of the underlying infrastructure is missing. It'd be nice if people could start working towards building it but the obscene amount of start-up capital required poses the biggest problem. The safest way is to take the proven paths such as agriculture. The problem with this is that it just isn't innovative and doesn't help build other industries within Somalia.

I agree. But, you need to start thinking in Private Equity mentality.

Starting private equity or holdings firm that takes profits from Agro and invests in other Industries is the tried and true methods
used in Asia.

If I started a private equity firm in USA, UK or England. I would be slapped with Regulation. Starting one in Somalia is requires nothing
other than capital and revenue to shareholders.

 

[merka]

Jubaland is larger than most Somalis realize. Dolo in Gedo is closer to Borama than to Ras Kamboni!!

Notice the road networks. The north and south are virtually segregated. Not having K5 is a huge loss.

 

[Deactivated]

Jubaland is larger than most Somalis realize. Dolo in Gedo is closer to Borama than to Ras Kamboni!!

That region is massive.

But you need a competent Ethiopian stakeholder in the circle.
If you are part of the despora you biggest strength is your Passport. Being able to freely find clients
in countries the Ethiopian passport limits is what gives you a leg to stand on.

Djibouti's port is gold mine for finding landlocked commodities from Ethiopia that can't leave the country.

All you need to do is intercept Ethiopian Agro brokers with no passports and they will gladly give you
commodities to trade.

The only problem is that, it's unsustainable, because you won't find the same broker again.

Somali's have ruined the trust between Ethiopians and Somali's. You pretty much have to go through
an Oromo stakeholder if you want a reliable source for goods.

 

[Lord Flacko]

Jubaland is larger than most Somalis realize. Dolo in Gedo is closer to Borama than to Ras Kamboni!!

JL is bigger than the whole island of Ireland even Never knew

 

[Thegoodshepherd]

@merka crazy right? That whole region has a population of 1.3 million. It can probably comfortably support 4-5 million.

@LarryThePuntite We should actually be servicing the parts of Ethiopia further away from Djibouti port where shorter distances gives you a price advantage. Kismayo should be exporting/importing for southern Ethiopia. The problem is exactly as you said though, the road from Kismayo goes only up to Jilib. All that land has barely 80 miles of paved road.

 

[Deactivated]

JL is bigger than the whole island of Ireland even Never knew

SL alone is the size of Ecuador.

Somali is massive when you add Somali with SL.

The only think that shivers me is these dams Ethiopia keeps building.

If they cut off the rivers in the future, it's a complete humanitarian crisis.

 

[Deactivated]

@merka crazy right? That whole region has a population of 1.3 million. It can probably comfortably support 4-5 million.

@LarryThePuntite We should actually be servicing the parts of Ethiopia further away from Djibouti port where shorter distances gives you a price advantage. Kismayo should be exporting/importing for southern Ethiopia. The problem is exactly as you said though, the road from Kismayo goes only up to Jilib. All that land has barely 80 miles of paved road.

Chinas railroad needs to be paid off. If you have an Ethiopian business account, you will be using the train to send goods out and in.
Bringing a competent Djiboutian born--Despora passport holder with you to Ethiopia is very important. Ethiopian government does not
want to hurt Djiboutian trade or it's citizens economically.

Our biggest trading partner is Ethiopia. People keep thinking it's Arab countries, but we a significant of trade with Ethiopia.

 

[merka]

SL alone is the size of Ecuador.

Somali is massive when you add Somali with SL.

The only think that shivers me is these dams Ethiopia keeps building.

If they cut off the rivers in the future, it's a complete humanitarian crisis.

The dams that Ethiopia are building on the Jubba and Shabelle rivers are a national security risk. Too bad the Federal government is not capable of defending our interests.

 

[Deactivated]

The dams that Ethiopia are building on the Jubba and Shabelle rivers are a national security risk. Too bad the Federal government is not capable of defending our interests.

I don't think it's that much of an issue. 90% of the valley can't be accessible.

They release water downstream, but it's the electricity that want to sell to us in the future. Electric power
in Somalia is very expensive, and Ethiopia wants in. If they Nile Project can help keep the lights on in Somalia.

That's a great thing.

 

[Thegoodshepherd]

The Ethiopians are quickly building dams on the Genale/Juba river while Somalis are preoccupied elsewhere. Total future installed capacity on the Juba will be around 520 MW which is 10% of Ethiopia's current power generation. They are stealing whatever potential there eve was of having a dam at Baardheere. Very sad to watch the potential slip away so easily.

http://allafrica.com/stories/201607051153.html

 

[Deactivated]

The Ethiopians are quickly building dams on the Genale/Juba river while Somalis are preoccupied elsewhere. Total future installed capacity on the Juba will be around 520 MW which is 10% of Ethiopia's current power generation. They are stealing whatever potential there eve was of having a dam at Baardheere. Very sad to watch the potential slip away so easily.

http://allafrica.com/stories/201607051153.html

I think it's not an Issue. Propaganda is misinforming the people.

Some of the pictures posted were photoshopped to scare people. Ethiopia can't close off a whole river and turn off the tap.
There's international problems with this. Ethiopia's is marketing sustainability in its agro products to compete with South American,
and South East asian Producers.

Boosting how great your farmers are, while killing other farmers isn't good for business in the longrun.

That river system will always be open. They will make more money sending us Hydropower from it, than closing it off from us.

 

[merka]

I don't think it's that much of an issue. 90% of the valley can't be accessible.

They release water downstream, but it's the electricity that want to sell to us in the future. Electric power
in Somalia is very expensive, and Ethiopia wants in. If they Nile Project can help keep the lights on in Somalia.

That's a great thing.

It's an issue when another country has the power to control the flow of your major water resources without your input. Egypt makes sure that they have a say in any projects Ethiopia is doing on the Nile River. Somalia should do the same.

The Ethiopians are quickly building dams on the Genale/Juba river while Somalis are preoccupied elsewhere. Total future installed capacity on the Juba will be around 520 MW which is 10% of Ethiopia's current power generation. They are stealing whatever potential there eve was of having a dam at Baardheere. Very sad to watch the potential slip away so easily.

http://allafrica.com/stories/201607051153.html

According to the article it seems that the electricity is being exported to Kenya, not Somalia. I guess it's too risky to build an electric grid in Somalia.