Report of the 9th Economic
Sector Coordination Meeting (ESCOM)
Maansoor Hotel, Hargeisa, January 22ND 2017
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About the Economic Sector Coordination Meeting (ESCOM)
The Economic Sector Coordination Meeting (ESCOM) constitutes a key element in Somaliland’s
National Development Plan (NDP) framework 1 .ESCOM is primarily a component of Government's Aid Coordination mechanism. There are 9 sectors under this process including:
Economic, Agriculture, Infrastructure, Health, Education, Water, Production, Governance and
Environment. Membership of each sector coordination forum includes: Government, PS, NGOs
and Development partners.The 8 sectors constitute Level 1 of the aid coordination process. Each sector was expected to hold bi-monthly coordination meetings chaired by a government ministry
or institution and co-chaired by a UN agency. At Level 2 is the inter-sectoral coordination
meetingwhich takes place on a quarterly basis. This meeting constitutes all chairs and co-chairs of the 8 sectors mentioned above. Level 3 is the high level National Coordination Committee which
meets Bi-annually.
The purpose of the Economic Sector Coordination Meeting (ESCOM) is to:develop sector
monitoring and coordination mechanisms, oversee implementation of agreed policy interventions,
provide policy guidelines and act as a forum for networking and information sharing.The
Economic Sector Coordination Meeting (ESCOM) brings together different economic sector stakeholders to enable information sharing and networking on issues that impact the economic
sector in particular and Somaliland’s economy in general.
Somaliland is designing a new National Development Plan (NDP) and it is expected that
ESCOM, alongside all coordination mechanism under the previous NDP, will be reviewed. In the
meantime, ESCOM meetings will be held on a quarterly basis to enable better follow up on meeting resolutions and enhance the overall quality of ESCOM.
1 Somaliland’s National Development Plan, 2012 -2016, has ended. A new National Development Plan (2017 – 2021) is currently under preparation.
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TABLE OF CONTENTS
ACRONYMS 4
ESCOM PICTORIAL 5
1.0 INTRODUCTORY REMARKS 6
2.0 FORMAL OPENING OF THE 9TH ESCOM MEETING BY THE VICE
MINISTER OF TRADE AND INVESTMENT, HON. AHMED MOHAMED
NOOR 6
3.0 ESCOM PRESENTATIONS 7 3.1 Presentation by the Ministry of Finance 7 3.2 Presentation by Ministry of Industry 7 3.3 Presentation by Ministry of Trade and Investment 8 3.4 Presentation on Somaliland’s legal framework by Legal Consultant, MoTI 10 3.5 Presentation by the Somaliland Chamber of Commerce and Industry 10 3.6 Presentation by the 2nd National Development Plan (NDP) Technical Team on the NDP (2017-2021) Formulation Process 11 3.7 Presentation on Somaliland’s Informal Economy after the Civil War 12
4.0 QUESTIONS & COMMENTS 14
5.0 CLOSING REMARKS BY ESCOM CO-CHAIR 16
6.0 ESCOM RECOMMENDATIONS 1716
APPENDIX 1: ATTENDANCE LIST 18
APPENDIX 2: AGENDA OF ESCOM MEETING, 22ND JANUARY 2017 20
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ACRONYMS BMOs Business Membership Organizations
CoM Government of Somaliland Council of Ministers DB Doing Business Reforms
ESCOM Economic Sector Coordination Meeting
GoSL Government of Somaliland
IEW Informal Economy Workers IFC International Finance Corporation, WBG
MoEM Ministry of Energy and Minerals
M0PND Ministry of Planning and National Development MoTI Ministry of Trade and Investment
NGOs Non-Governmental Organizations
NDP Somaliland National Development Plan
PSD Private Sector Development SCORE Somali Core Economic Institutions and Opportunities Program
SDF Somaliland Development Fund
SLCCIA Somaliland Chamber of Commerce Industry and Agriculture WBG World Bank Group
WGs Working Groups
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ESCOM PICTORIAL
9th Economic Sector Coordination Meeting (ESCOM) Group Photograph
Vice Minister of Trade and Investment, Hon. Ahmed Mohamed Noor formally opens the 9th ESCOM
ESCOM in Progress
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1.0 INTRODUCTORY REMARKS
The 9th Economic Sector Coordination Meeting (ESCOM) took place at Maansoor Hotel
in Hargeisa on January 22nd 2017. The meeting was opened by the ESCOM Co-Chair,
Mr. Mohammed Awale, who welcomed all participants and thanked them for their
participation. He noted that a number of important policy recommendations had emerged
from ESCOM consultations and many of these recommendations, if followed up and
implemented, would greatly benefit the economy. He therefore emphasised the need for
consistent follow-up and implementation of agreed upon recommendations. He
welcomed the Chief Guest, Hon. Ahmed Mohamed Noor, Vice Minister of Trade and
Investment, to the meeting and wished participants successful deliberations.
Additional welcome remarks were made by Mr. Michael Thyge Poulsen of Danida who
is also the co-chair for ESCOM. Mr. Poulsen noted that ESCOM is a very important
consultation forum focusing on policies and interventions that impact the private sector
and the economy of Somaliland. He informed participants that the second Somaliland
National Development Plan (NDP2) formulation process is still ongoing and a number
sub-sector working groups such as finance, trade and investment, the private sector and
others have been constituted and are now fully functional. He however noted that data
collection and access remains a big challenge and there is a lot of missing data. He
encouraged partners to make available information relevant to the NDP formulation
which may be in their possession in order to ensure that the target for generating the
NDP2 draft report by April 2017 is met. He further noted that the special arrangement for
Somaliland is coming to an end and the new NDP2 will inform the aid structure going
forward. According to the agenda of the ESCOM all four sectors of the economic sector
were asked to make presentations based on their respective sub-sectors.
2.0 FORMAL OPENING OF THE 9TH ESCOM MEETING BY THE
VICE MINISTER OF TRADE AND INVESTMENT, HON. AHMED
MOHAMED NOOR
The Vice Minister of Trade and Investment, Hon. Ahmed Mohamed Noor, formally
opened the ESCOM meeting. He welcomed all participants to the meeting and
highlighted the importance of regular and productive policy consultations involving
Government the private sector and other key stakeholders. He noted that ESCOM
continues to provide an important forum for consultations on private sector and other
economic development issues. ESCOM consultations are therefore very critical to
Somaliland’s development.
The Hon. Vice Minister observed that currently, Somaliland imports a lot of goods and
services from other countries and offers a very limited range and quantity of exports. This
is a source of strain on the economy in terms of limited foreign exchange earnings,
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inability to fully exploit the country’s abundant raw materials, limited employment
opportunities for the population, and others. He further noted that the country faces
massive inflation as well as the negative effects from the livestock ban. According to the
Vice Minister, livestock is the backbone of Somaliland’s economy and partners should
ensure vital support is provided to this sector. The Vice Minister finalized his remarks by
saying that although Somaliland is not internationally recognized, the country is ready for
economic development and is keen to strengthen its business relations with the outside
world. He wished participants fruitful deliberations.
3.0 ESCOM PRESENTATIONS
3.1 Presentation by the Ministry of Finance
Participants were given a presentation by the Ministry of Finance which was delivered by
Mr. Hamse Abdikadir Husein. He started his remarks by noting that the Ministry of
Finance is the custodian of the government’s financial resources with a spectrum of
responsibilities including: providing proper budgetary and expenditure management of
the public resources; managing the revenues, expenditures and borrowing by Government
of Somaliland; mobilizing adequate resources to support Government programs and
activities and; developing sound fiscal policies aimed at ensuring a sustainable budget
surplus.
Over the last 5 years or so, the Ministry has spearheaded a number of reforms including
the following policies and reforms: formulation of a micro-credit policy; fiscal and
monetary policies; comprehensive tax & revenues reforms (PFM); cross border trade
reform; creation of a Revenue Authority for Somaliland. A number of important laws
have also been enacted which include: the Central Bank law, Islamic Banking law,
Revenue Act, Government Expenditure Act, Auditing Act and Procurement Act.
Challenges and risks
The Ministry has faced a number of challenges and risks including: inadequate policy
planning and absence of reliable data; weak central bank regulation; shortage of skilled
staff; inability to use fiscal and monetary policy to reduce price instability; limited
external assistance to finance development programs; poor tax collection systems; and
absence of financial institutions such as commercial and investment banks.
Recommendations
There is need to enacting relevant customs and in-land revenue legislation. It is also
important to upgrade tax systems and procedures. Human resource development is also
required including training staff and upgrading skills. The Somaliland Central Bank also
needs to strengthen its rules and regulations. Finally there is need to strengthen financial
institutions in order to facilitate the Country’s economic development.
3.2 Presentation by Ministry of Industry
Commented [U1]: Customs and Inland Revenue Acts have already been passed so I don’t understand why Hamse included this here unless he wanted more specific legislations
on these areas.
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Mr. Ahmed Adem Ibraahim presented on behalf of the Ministry of Industry. He started
by outlining the functions of the ministry which include: regulating and facilitating
development of industries in the country; assisting the registration process of new
industries; processing the tax exemption papers for raw materials and machineries to be
used in production processing; and formulating industry policies to promote development
of Somaliland’s manufacturing base.
Key policies and reforms
Priority areas of focus which the Ministry is currently pursuing include: conducting an
intensive industrial improvement initiative; facilitating implementation of an industrial
production policy and strategy; strengthening the national industrial association; creating
industrial zones and improve skills training to meet the needs of the labour market; and
drafting the industrial act which has already been approved by the cabinet.
Challenges and risk factors
Mr. Ahmed Adem Ibraahim also identified risks and challenges faced by the ministry
including: lack of resources to implement the Ministry’s activities; lack of an industrial
policy; limited levels of industrialisation; need to rehabilitate the country’s only cement
factory; need to provide market information and enable access to the markets. Further to
this, the absence of trade policy gives confusing signals in the market. On a more positive
note, the recent IPP training in Nairobi has culminated in the proposal to establish
Somaliland’s investment policy.
Recommendations
The Ministry made a number of recommendations including: Need to improving internal
and external market opportunities, especially among neighbouring countries; importance
of value addition industries for livestock related sectors; need to strengthen the
productive sector; importance of fostering and encouraging industrialisation in key
sectors including fishing and livestock; need to promote the mining industry; and need to
support Public Private Partnership (PPP) initiatives.
3.3 Presentation by Ministry of Trade and Investment
Mr. Mahamed Kadar AbduwahabAhmed Adem Ibraahim presented on behalf of the
Ministry of Trade and Investment (MoTI) and started by restating the vision of the Ministry which is: A State with vibrant market economy that contribute to the economic
growth and wellbeing of the society. He also noted that the Ministry’s mission is to:
Facilitate and improve the creation of business enabling environment and infrastructure
for accelerated growth of exports and trade. The Ministry’s stakeholders include:
economy facing government ministries such as the Ministry of Finance, the private sector
under the Chamber umbrella and others.
Main functions
MoTI is responsible for the regulation and development of business and commercial
activities in Somaliland. This includes registering and licensing of businesses in order to
regulate their activities and maintaining information centre services to which makes
Commented [U2]: Perhaps we include Ahmed in the incoming Addis Trade Policy training.
Commented [U3]: Mohamed presented for the MoTI while Ahmed Adem presented for the MoI as shown above.
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business news and information resources available to enterprises. The Ministry also
contributes to government revenues and is responsible for operating national fuel stations
(FS). There are 14 in total, spread from Hargeisa to Sheikh and nearby cities, from which
the Ministry realises an operating profit.
Income generated by the Ministry of Trade and Investment in 2016
IMPORTS AND EXPORTS LICENSING FEES
MONTHS INCOME MONTHS Total (S/L Shilling)
January 489,565,400 Sl Sh January 229,503,000.00
February 457,220,700 Sl Sh Feb 193,968,000.00
March 506,292,300 Sl Sh March 284,725,000.00
April 492,889,000 Sl Sh April 139,433,000.00
May 545,831,100 Sl Sh May 207,907,000.00
June 495,499,100 Sl Sh June 196,982,000.00
July 541,640,800 Sl Sh July 183,498,000.00
August 544,488,300 Sl Sh August 211,590,000.00
September 522,955,900 Sl Sh September 310,047,000.00
October 557,371,000 Sl Sh October 502,159,500.00
November 509,812,400 Sl Sh Nov 502,159,500.00
December 592,700,475 Sl Sh Dec 249,539,150.00
TOTAL 6,346,266,475 Sl Sh Total 3,211,511,150.00
Ministry’s Strategic Self-Assessment
The Ministry has been unable to fulfill is objectives due to lack of mandate clarity as well
as mandate overlaps with other Government institutions. The Ministry also faces
resources constraints including inadequate budget and lack of structured data collection
and information sharing procedures.
Identified opportunities
The Ministry has identified opportunities for improved services delivery including
working closely with other government departments to ensure that respective
departmental mandates are clarified and overlaps eliminated. This approach is likely to
reduce opportunities for interference among different departments. There is also need to
revisit management of national fuel stations to ensure a more efficient and effective
approach. Finally, it is important that the Ministry reduces red tape and bureaucratic
procedures delaying business startupsstart ups and investments.
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3.4 Presentation on Somaliland’s legal framework by Legal Consultant,
MoTI
Mr. Mustafe Mohamed Dahir, the legal consultant for the Ministry of Trade and
Investment (MoTI), made a presentation on Somaliland’s legal framework. His presentation focused on Somaliland’s commercial, business and investment related
laws/regulations. He informed participants that the preamble to the Constitution of
Somaliland creates a clear link between rule of law and economic development and
protection of property rights is of constitutional significance. In Somaliland, regulation
may sometimes be seen as a tool which can be leveraged by different interest groups to
their advantage using their respective bargaining powers within the regulating machinery.
Mr. Mustafe noted that the state of the legal framework has an impact on the pace of
Development. The legal framework is not static because changes in society and the
economy often necessitate new legislation. He further noted that overall, Somaliland’s
current legal framework exhibits both strengths and weaknesses and many laws need to
be updated. Addressing himself to the challenge of ineffective legislation, he noted that a
number of factors may responsible for this including: absence of sufficiently trained
manpower when the laws were enacted; lack of a strong Institutional basis for the
operation of the laws, absence of sufficiently developed administration of justice, and
lack of adequate resources to implement legislation.
Required legislation Purpose
Somaliland Companies Law
(amendment)
Strengthen the regulatory framework for
businesses and enable automated business
startup registration.
Electrical Energy law and energy
regulations
Provide basis for energy sector regulation
Uniform Commercial code Harmonize laws governing commercial
transactions in Somaliland
Domestic Investment Laws Spur domestic investment
Amendment of Foreign
Investment Law
Encourage foreign investment
Somaliland Industrial Law Support industrialization drive
Patent and Copy Right Laws Enable intellectual property protection
3.5 Presentation by the Somaliland Chamber of Commerce and
Industry
Mr. Abdirashid Hussein made a presentation on behalf of the private sector. He noted that
the private sector in Somaliland faces significant operational constraints which in turn
impacts their viability. The most serious constraint is the lack of access to finance. Poor
infrastructure, low human capital and insecure land rights also constitute major
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constraints to private sector growth. According to him, Somaliland has got the “basics”
right in ensuring a good environment for business with macroeconomic stability, low
crime rates and the rule of law all in place. However, the private sector still encounters a
lot of strengths including the following:
- Access to finance continues to be a major challenge and the Government has not been successful in passing the Commercial Banking Law.
- There have been several attempts to improve communication between
Government and private sector. It might be the case that the Government is not
perceived by the private sector as a partner that can be helpful. Other potential
reason is that the Government is always reaching out to the same stakeholders in
the private sector and missing out important information from other stakeholders
in the sector.
- Gender has not been targeted as an important issue. Do female business owners
have different needs? Do they face different challenges and/or in different
intensities?
- Private sector needs to be addressed as a critical sector for all the other sectors
and a full-time partner of the Government for the development of the country.
Government still needs to learn how to create the right incentives – which are not
necessarily tax incentives – and remove obstacles to engage with the private
sector.
3.6 Presentation on the NDP2 (2017-2021) Formulation Process
Mr. Guilherme Suedekum, a member of the NDP2 team and a consultant who works with
the Ministry of Planning, made a presentation to the meeting on the ongoing efforts to
formulate the 2nd National Development Plan (2017-2021). He noted that the National
Development Plan (NDP) is the main guiding document for the medium term
development of Somaliland and its implementation will support implementation of the
Somaliland National Vision 2030. He then proceeded to give a background to the NDP2
formulation process.
Review of NDP1 Activities and Approach to NDP2: He explained a number of
activities which have already been implemented including: an external Review of NDP 1
which was undertaken by the Ministry of Planning and National Development. This
review generated a number of recommendations including: need to adopt a more
inclusive approach during formulation of NDP2; need to ensure plan formulation relies
on solid evidence of the development situation in Somaliland; importance of having clear
and concise goals at objective and outcome levels; need to develop sectoral strategies and
to ensure that the next NDP is well prioritized and realistically costed.
He further highlighted salient attributes of NDP 1 (2012-2016). He noted that the plan
mainly focused on outputs for a number of development projects. It also focused on role
of Government institutions and the planning process was driven by MoPND which
developed the plan. Government institutions were required to inform MoPND about their
priority projects for inclusion in the NDP. The approach utilized in NDP1 contrasts with
the approach adopted for formulation of NDP2 which now focuses on outcomes i.e.
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targets to be achieved. It is also focused on the 9 NDP2 sectors including: agriculture,
economic, infrastructure, health, education, water, production, governance, environment
and energy sectors. While MoPND coordinates development of the plan, sector
stakeholders determine collectively the targets to be achieved.
NDP 2 Planning Architecture
Committee or Team Role
NDP Oversight Committee
– Lead the planning process; ensure that all
relevant stakeholders are committed and engaged.
NDP Technical Team – Responsible for all technical aspects of the
planning process.
NDP Sector Technical Teams
– Undertake sector reviews and prepare sector
analysis reports.
Consultants – Provide technical Assistance.
Mr. Suedekum disclosed that the NDP2 formulation team is currently working with Sector Technical Teams to: complete Sector Analyses; review the Analyses and compile
Sub-sector Analyses where necessary. The next step will be to prepare for Sector
Workshops. This will entail reaching out to sectors to prepare lists of
participants/decision makers; mapping key missing indicators and preparing baselines.
Next steps in the NDP2 Process
It is envisaged that a total of 9 Sector workshops will be organised in February 2017. The
workshops will focus on defining goals and targets based on Sector Analyses. Drafting
the NDP2 will be undertaken in March 2017 after which the draft will be validated with
key stakeholders.
3.7 Dr. Abdi Baashe: PIMS program overview; Abdi Bashe briefly provided a general overview of the PIMS program and the livelihood and value chain improvements it seeks to implement for
the rural communities and particularly in the milk production and brining it into the markets. He
also talked about the cash for work program which is intended to improve the feeder roads and
access to markets.
3.87 Presentation on Somaliland’s Informal Economy after the Civil
War
The presentation was made by Eid Ali Salan and was premised on a study that was part
of research led by Cardiff University and focused on Economic Recovery in Post-Conflict cities: the role of the urban informal economy2. The research explores the role of
the urban informal economy in poverty-reduction, peace-building and development in
post-conflict cities, and its scope to provide livelihoods for the extreme poor and a
platform for economic recovery. It identifies the main challenges which include:
2 The study was funded by DFIC-ESRC (Project ES-M008789-1)
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Lack of literacy and business skills: Only 40% of Informal Economy (IE)
workers are educated beyond primary school and lack of literacy and business
knowledge. This means that there is a lack of capacity for business growth.
Difficulties with infrastructure and operating spaces: 55% of IE workers
interviewed operated from the street without any designated trading space, or
amenities such as water, electricity and waste management provision. This not
only causes conflict between traders and other user of public space, but causes
congestion in the city which in turn causes health and safety concerns. Even
when market spaces are provided by the municipality, they are often underused
as they are inappropriately located or inadequate to meet the needs of IE
Workers. However, working environments are generally safe, although less so
for women.
Business decrease: 15% of current IE workers had suffered a decrease in
business over the last 5 years threatening household resilience and urban
livelihoods, mainly because of increased competition.
Lack of inclusion in government policy: There is a lack recognition of the role
of IE work in providing livelihoods for many households in Hargeisa. The IE
remains unrecognized in Somaliland’s National Development Plan, and there is
no enabling regulatory framework. While this means that harassment levels are
low and businesses can generally survive, there is also an absence of protection
for IE workers.
Economic variables and lack of access to finance: The lack of access to finance
and credit, and the fact that only 4% of IE workers receive informal cash
transfers from family, means that it is hard for IE workers to start and maintain
livelihoods ventures, particularly in times of economic shock.
Eid noted that since 90% of the economy of Somaliland depended on the informal sector,
it needs to be supported and made a target for improvement. He suggested that Informal
Sector Policy was needed. The report also identified several key protections that could
alleviate the challenges and problems identified above. These include:
Policy inclusion to genuinely support and empower IE workers and their
businesses. Small-scale enterprise enabling actions could begin to aid IE workers
overcome some of the challenges identified above.
Support for associations: Enabling workers to organize into associations, trades
unions or co-operatives can be important in providing a platform for IE workers
to articulate and negotiate their needs, establish rights, and address conflicts in the
urban context. Savings and credit associations and financial co-operatives can be
important sources of savings and credit. Currently only 7% of current IE works
part of a trade union or informal association, and there is no co-operative
legislation in the country.
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Increased literacy and business training: Increased literacy and business
training could address some of the difficulties of lack of formal education faced
by some members of the IE. A focus on women would help the most vulnerable
groups. However, training sessions should be affordable and timed so that people
can combine training with income earning. Some training is provided by NGOs,
but none of the current IE workers interviewed had engaged with NGOs,
increased training opportunities are needed.
Improved infrastructure and operating spaces: Despite over 90% of current IE
workers paying daily fees to the municipality, there is virtually no infrastructure
of provision for IE businesses, and trading space can be inadequate, congested
and dangerous. Better trading space provision would not only protect IE workers
and increase resilience but would encourage business growth and development.
Recommendations from the report
A number of recommendations are identified in the report including: need to increase
national legitimacy and recognition; need to strengthen voice and participation; need to
plan locally for the informal economy; need to support vulnerable informal economy
workers; and importance of providing lessons for international agendas and humanitarian
assistance.
4.0 QUESTIONS & COMMENTS
The meeting was participatory and the following additional feedback was received during
the question and answer session.
Comment by Michael Poulsen, Danida Representative and ESCOM Co-
Chair: it is important to ensure that NDP2 is followed-up and sectors provide
missing data as well as inclusive plans. Institutions should focus on a broad range
of issues and meetings need to be urgently convened so as to finalize sector
consultations. He also acknowledged the strong support provided by the Ministry
of Planning in terms of effective coordination. Regarding the legal framework, he
indicated that laws take a very long time to enact. What is important is to focus on
the most important bills so as to pass them. Michael noted that in order to
overcome challenges, it is challenges it is important to have a mechanism for
effective advocacy and lobbying. He added that presentations so far received have
tended to focus on public institutions, ministry based priorities. The intention for
the NDP2 is to move away from that and focus on different institutions, broaden
analysis and prioritise cross-cutting issues.
Comment by Eid Ali Ahmed: He mentioned that it’s very important for
government to include informal economy in its planning process. According to the World Bank the informal economy employs around 77% of Hargeisa city
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workforce. He mentioned that he and his team had met a cross section of senior
government personalities and other stakeholders to discuss the report including:
the Vice President of Somaliland, H.E. Abdirahman Abdillah Ismail, Hargeisa
local government officials and UN agencies such UN Habitant, UNICEF and
ILO.
Comment by Mohamed Barawani of SONSAF: He noted that the informal
economy is very important because it provides tax and revenue to the local
government and it provides livelihood to many citizens hence the need for the IE to be covered by NDP2. He also called for creation of sector associations such as
an umbrella for milk sellers, meat, and others. The sectors also needs a lot of
micro-credit to spur economic growth and development
Comment by Mohamed Awale: He expressed the view that it would be
important for the Government to support the local economy and further determine
whether or not the joint program on local governance (JPLG) and the municipality
can mobilize resources for this purpose. He promised to provide feedback to
participants during the next ESCOM.
Question by Dr. Abdi Osman from DAI: He wanted to establish the criteria Mr.
Eid Ahmed used to distinguish between formal and informal sector?
Question by Mohamud Hasan from Somaliland Chamber: He asked Mr. Eid
Ahmed whether this research will be conducted widely in other cities of
Somaliland
Feedback by Mr. Eid Ahmed: Regarding the criteria used to distinguish
between formal and informal businesses, it depended on the type of business they
were involved in. if they are vendors on the street then they are not registered as
businesses and only pay a small amount of money to the local government. Those
with no suppliers and no stores to mention a few are categorized as part of the
informal economy. Finally, with funding, this research will be widely prototyped
across Somaliland.
Comment by Mustafa Ahmed from Civil Service Institute: He noted that
informal business were affected by lack of refrigerators because most traded in
perishable commodities such as sale of fish, meat and vegetables. He also further
mentioned that some of the conditions of these products are unhygienic like meat
and fruits.
Comment by Adam Ismail from Hanvard: He mentioned that the study was
conducted in Hargeisa and it’s a micro concept which will cover other cities in
Somaliland if funding is available. He agreed that the research showed that
infrastructure was a challenge. He further mentioned that there was no
refrigeration for example to help fishing companies bring their catches to the
market and improve the value chain. Subsequently, there is need for a policy to
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assist promote the sector and improve the working condition and to achieve this,
there is need for a holistic approach
Question by AbdiKarim Gole: He inquired whether NDP2 will consider the
informal sector a different sector on its own.
Feedback by Guilherme Suedekum: He said that the decision doesn’t lie with
the NDP2 formulation team. He emphasized that the research on informal
economy will be included while formulating NDP2. He also encouraged the
private sector, civil society and all stakeholder to share information so that NDP2
is more inclusive.
Comment by Mohamed Awale: The Government was to lead some sectors with
private sector co-leading like Shurakoo on finance, SONSAF co-leads on others
sectors. Subsectors are also in place and Eid Ahmed may be a champion on
informal Economy.
Feedback by Eid Ahmed: He said there is a prospect for future research. They
will hold a conference in Cardiff in April or May on informal sector findings. He
mentioned that the policy targeting the informal sector is not a stand-alone policy
but having commonality with other policies.
Comment by Mustafa Mohamed Lawyer for Ministry of Trade: He
mentioned that laws and policies that support informal economy are needed to
assist in growth and development of the sector. He further mentioned that the
World Bank has conducted several studies and recommends laws that support informal economy.
Comment by Adamn Ismail from Hanvard: Highlighted need to address policy
and legislative gaps that inform informality. Key policies, legislation and other
required interventions include: Formulation of SME Policy, Trade policy,
Investment policy, Private sector policy, Set up of one stop shop, Foreign
investment Act – SONSAF to support validation workshop, Company Act needs
to be enacted and Doing Business reforms are also urgently required.
5.0 CLOSING REMARKS BY ESCOM CO-CHAIR
In his closing remarks, Mr. Mohamed Awale thanked all participants for their active
contribution to the ESCOM agenda. He reiterated the critical importance of stakeholder
dialogue on key issues that impact Somaliland’s private sector development. He further
encouraged presentation of evidence based research findings at ESCOM meetings
especially focusing on topics critical to the growth and development of the economy. He
cited the presentation on the informal sector in a post war setting as a good example of
evidence based research that will positively impact policy. He thereafter closed the
meeting. The next ESCOM Meeting will be convened on 19th April 2017
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6.0 ESCOM RECOMMENDATIONS
Issue Detailed requirements
Improve tax legislation,
systems and procedures
There is need to enact relevant customs and in-land
revenue legislation and to upgrade tax systems and
procedures
Develop human resources and upgrade skills
Strengthen financial
institutions and
regulation by the
Central Bank
The Somaliland Central Bank needs to strengthen its
rules and regulations
There is need to strengthen financial institutions in
order to facilitate the Country’s economic
development
Improve market
opportunities and focus
on value addition
There is need to improve internal and external market
opportunities, especially targeting neighbouring
Establish value addition industries for livestock
related sectors and strengthen the productive sector
Strengthen
industrialization and
PPP initiatives
Foster and encourage industrialisation in key sectors
including fishing, livestock and mining
Establish and support Public Private Partnership
(PPP) initiatives
Improve management
of National Fuel
Stations
Revisit management of national fuel stations to
ensure a more efficient and effective approach
Reduce red tape and
bureaucracy
Ministry of Trade and Investment should endeavor to
reduce red tape and bureaucratic procedures delaying
business startups and investments
Address access to
finance challenges
Revisit issue of Commercial Banking Law in order
to enable conventional banking in Somaliland
Improve government –
private sector
communication
There need to further improve communication
between Government and the private sector
Prioritize gender issues Gender has not been targeted as an important issue.
Specific challenges for women in business need to be
addressed.
Recognize private
sector and remove
obstacles to private
sector development
Private sector needs to be recognized as a critical
cross cutting sector and a full-time partner of
Government for the development of the country.
Government still needs to learn how to create the
right incentives – which are not necessarily tax
incentives – and remove obstacles to engage with the
private sector.
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APPENDIX 1: ATTENDANCE LIST
Name Organization Phone Email
1. Ismail Idiris Iman Bank Of Somaliland 0633434645 [email protected]
2. Guilherme Suedekum MNP&D 0633819800 [email protected]
3. Dr. Hibaq Bubal Private Sector 0634777004 [email protected]
4. Ahmed Adam Jama Chamber Of Commerce 0634473133 [email protected]
5. Abdifatah Omar Ministry Energy &
Minerals
06344187118 [email protected]
6. Mohamed M. Awale Ministry Of Trade &
Investment
0634240083 [email protected]
7. Abdikarim Jirde Gole Shuraako 0616968684 [email protected]
8. Abdirashid Husein
Mohamed
Chamber Of Commerce 0634782244 [email protected]
m
9. Mustafe Ahmed Civil Service Institute 0634478830 [email protected]
10. Mohamed Ahmed SONSAF 0634414335 [email protected]
11. Ahmed Adam Ibrahim Ministry Of Industries 063-4249068 [email protected]
12. Khadar Ali Osman Ministry Of Finance 063421108 [email protected]
13. Hamse A.khadir Husein
Ministry Of Finance 0634417264 [email protected]
14. DR Abdirisaq Yousuf SL Medical
Association
0634428945 [email protected]
15. Hassan Abdinasir
Omar
Golis University 0634420483 [email protected]
16. Abdirisaq M. warsame Dai-PIMS 0634360040 [email protected]
17. Barkhad A. Hassan Ministry Of Trade &
Investment
0634049415 [email protected]
18. Mustafe Mohamed
Daahir
MOTI 0634477622 [email protected]
19. Hamda Sheikh Ahmed
Sheikh Ali
Ministry of Trade &
Investment
0634675925 [email protected]
20. Saed Mohamed Jama Ministry of Trade &
Investment
0634412545 [email protected]
21. Mukhtar Mustafa
Hashi
MOT 0634064674 [email protected]
22. Abdirahman
Musabaqo
Bank Somaliland 0634429137 Musaabaqo2gmail.com
23. Abdirsak Mohamed M OF Minerals 0634247989 [email protected]
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Name Organization Phone Email
abdi
24. Abdikarim Mohamed
Omar
MONPD 0634479178 [email protected]
25. Mohamoud Hassan
Said
Chamber Of Commerce 063388916 [email protected]
26. Dr. Abdi Osman Haji
Abdi
Dai-PIMS 0634437029 [email protected]
27. Waliid yousuf Ahmed Ministry of Justice 0634242664 [email protected]
28. Abdihakim Mahdi Aden
Ministry Of Trade & Investment
0634474315 [email protected]
29. Abdifatah Abdilahi
Jirde
0633674466 [email protected]
30. Richard Susan sills Darlington Foundation 0633295962 [email protected]
31. Eid Ali Ahmed Consultant 0633295962 [email protected]
32. Mohamed Abdiwahab Consultant 0634424244 [email protected]
33. Yaasiin Nuur Mooge Telesom Company 0634220493 [email protected]
34. Mohamed Ahmed African Business Wire 0634456640 [email protected]
35. Abdirisak Shaafi
Mohamed
Ministry Of Justice 0634243303 [email protected]
36. Ali Farah Jama Ministry of Trade & Investment
0634477132 [email protected]
37. Michael Poulsen Danida 0634000437 [email protected]
38. Adam Ismail Hanvard/IFC 0634411095 [email protected]
39. Ahmed Mohamed
Nuur
Deputy Minister of
Trade
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APPENDIX 2: AGENDA OF ESCOM MEETING, 22nd January 2017
ECONOMIC SECTOR COORDINATION
MEETING (ESCOM)
Maansoor Hotel, Hargeisa, Sunday 22nd
January 2017
AGENDA TIME ACTIVITY EXPECTED OUTCOMES
8:30 – 9:00 REGISTRATION
Welcome remarks by ESCOM Chairman:
9:00 – 9:10
Mohamed Awale (MoTI): Director of Planning
9:10 – 9:30 Official opening by Minister of Trade and Word from the Minister of Trade on
Investment: Hon. Omar Shuaib Mohamed how his Ministry committed to
supporting the ESCOM in line with
the Ministry vision.
9:30 – 9:40 Review and confirmation of minutes of the Progress achieved in implementing
previous ESCOM meeting: Chairman – Mohamed
agreed recommendations during last
Awale. extra-ordinary ESCOM.
9:40 – 9:45 Remarks the co-chair: Michael Poulsen – DANIDA Perspective of donors in the NDP2 representative. preparation and how it could assist
sub-sectors and increase ownership
of the planning process.
9:45– 10:30 Presentations from 4 sub-sectors: Update participants on the NDP2
1. Finance: Hamse Abdikadir Husein (MoF) economic sector analysis (4 sub-
2. Industry: Ahmed Adem Ibraahim (MoI) sectors) in terms of the priorities
3. Trade & Investment: Khadar Abdiwahab (MoTI)
4. Private Sector: Abdirashid Hussein (Chamber)
10:30 – 10:45 COFFE AND TEA BREAK
10:45 – 11:35 Other Presenters: Update participants on various
1. Mr. Eid Ahmed: Cardiff University (Post Conflict
activities that are relevant to the
Economic Recovery and Urban Informal Economy of work of the economic sector and Hargeisa City). could enhance join-work and
2. Dr. Abdi Baashe: PIMS program overview. partnership.
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3. Mustafa Dahir: legal framework initiatives.
4. Mubarak Abdillahi: NDP2 Analysis & future steps
(MoP).
5. Abdulkadir Hashi: Overview of PPP programs.
11:35 – 12:10 Comments and Questions session Enable participants to make
comments and to ask questions on
the issues presented.
12:10 – 12:20 Items for the next ESCOM (Proposals) & closing Items for the next ESCOM
remarks
12:30 LUNCH