Why don't we manufacture anything?

[Xooshdheere]

Somalis are the biggest fools in the world. They don't even manufacture a single toothpick yet import everything including khat making other countries richer.

Is there a reason?

 

[Von]

Too manufacture you need energy, security, and access to resources for the most part. All of which Somalia doesn't have. Our exports are about $800 million mainly from livestock, bananas, hides, fish, and charcoal, the only thing that Somalia can really invest is in Food for now. From what Wikipedia says are main imports are manufactured products, petroleum products, foodstuffs, construction materials. But for the deep core reasons, someone else can example.

 

[Yonis]

Theres lots of manufacturing companies in Somalia, you're just too lazy to look for them

 

[Xooshdheere]

I know there's a factory of some kind in SL built by the kacaan but why isn't it selling

 

[SirLancelLord]

I know there's a factory of some kind in SL built by the kacaan but why isn't it selling

What factory, they didn't build anything and what they did is in ruins

 

[SirLancelLord]

There's a few factories in somaliland I know from the Coke / washing powder / and dozens of water bottling plants... There's a small cosmetic factory & car assembly in hargeisa.

There needs to be more. Go check the somaliland investment forum it'll show more stuff

 

[Xooshdheere]

What factory, they didn't build anything and what they did is in ruins

There's a cement factory built by the kacaan government.

 

[RasCanjero-]

There is this thing called the network effect.

Once you have all the infrastructure, cheap energy and thousands of small suppliers in place you could start competing in the global market.

Even if I were to build a massive toothpick factory in Somalia... the cost would price me out the market unless Somalia takes up a protectionist economic policy.

Think about it:

1. no large supply of cheap wood,
2. lack of machine/CNC shops that build the parts I need for my machines
3. Expensive energy bill
4. Need to train everyone I hire

It keeps on adding up and I'll also have to import most the things I need.

The biggest obstacle though is the lack of a domestic market. Most factories keep the lights on by selling locally.

If Somalia want to start manufacturing the government needs to:

• Implement high tarrifs on imports unless it's something our industries can't produce ATM.
• Infrastructure investment in a centralised industrial region to cut costs and increase overall efficiency. (Why build 3 modern ports when you could build a single large efficient one?).
• Create public-private initiatives to train workers cheaply similarly to German vocational schools.
• Limit government interference in all industries other than energy and mining to prevent resource hoarding or overcharging.
• Strongly enforce the rule of law equally.

The first decade shouldn't be about how much foreign currency we bring in or how many people employed.

We should initially focus on increasing our exposure to recent technologies and methodologies. Main goal would be to improve efficiencies in our foundational industries.

Otherwise we'll be eaten alive once we open our doors to the wider market.

Once we pull that off... FDI's would start pouring in as we'll probably be one of the few African countries that got it's shit together.

Highly doubt Ethiopia would allow us to do that through.

 

[Coulombs law]

There is this thing called the network effect.

Once you have all the infrastructure, cheap energy and thousands of small suppliers in place you could start competing in the global market.

Even if I were to build a massive toothpick factory in Somalia... the cost would price me out the market unless Somalia takes up a protectionist economic policy.

Think about it:

1. no large supply of cheap wood,
2. lack of machine/CNC shops that build the parts I need for my machines
3. Expensive energy bill
4. Need to train everyone I hire

It keeps on adding up and I'll also have to import most the things I need.

The biggest obstacle though is the lack of a domestic market. Most factories keep the lights on by selling locally.

If Somalia want to start manufacturing the government needs to:

• Implement high tarrifs on imports unless it's something our industries can't produce ATM.
• Infrastructure investment in a centralised industrial region to cut costs and increase overall efficiency. (Why build 3 modern ports when you could build a single large efficient one?).
• Create public-private initiatives to train workers cheaply similarly to German vocational schools.
• Limit government interference in all industries other than energy and mining to prevent resource hoarding or overcharging.
• Strongly enforce the rule of law equally.

The first decade shouldn't be about how much foreign currency we bring in or how many people employed.

We should initially focus on increasing our exposure to recent technologies and methodologies. Main goal would be to improve efficiencies in our foundational industries.

Otherwise we'll be eaten alive once we open our doors to the wider market.

Once we pull that off... FDI's would start pouring in as we'll probably be one of the few African countries that got it's shit together.

Highly doubt Ethiopia would allow us to do that through.

Very well thought out procedure. Somalia just needs to figure out a way to draw on energy sources and regulate its funds towards it.

Three things I see that I are holding us back are

1) Corrupt politicians and business men that are literally hording millions of dollars which prevents the kick start of the economy.

Everything being built and developed from parliament buildings to military bases have been from foreign countries mainly Turkey and not from the governments vast funds.

2) Another thing is that Somalia has way too many groups working against them. The main obstacle is Ethiopia as they have no plans to let Somalia move up the ranks in terms of Economical feasibility and power.

3) Inept government which ties into my previous point

But what can you do when your own Somali people are in support of Greater Ethiopia and politicians that sell themselves to them for a few dollars...

 

[Madaxkuti]

There's a cement factory built by the kacaan government.

Yh but its been closed for the last 20 years. I heard some kuwaiti investors have bought the plant and want to get it up and running again

I actually went there this summer. The place is basically abandoned with spider webs
Here`s a pic I took.