Joint Market and Supply Chain Update 6th December — 13th December, 2020. Key messages

 Effects of devaluation of Somali Shillings continue in the main markets of Punt- land, the local currency slightly improved but is fragile.  In Galkayo, prices of fruits and vegetables such as tomatoes, onions, and water- melons are fluctuating due to delays in the main corridor linking Galkayo and Beletweyne.  In South West, prices of essential food items remain high in most markets and availability is very low.

Banadir and Hirshabelle Galmuduug • Deyr rains subsided and stagnant water on the main • In Dhuusamarreeb and Guriel, prices of imported food road linking Balcad and Jowhar are reducing and acces- items are increasing due to effects of the devaluation sibility of the road and transport services are likely to of local currency (Somali Shilling) in upstream market resume as from next week. However, there is a short- of Bossaso. For instance 50 Kg of wheat flour increased age of imported food commodities such as sugar and from $27 to $28 (4%) and vegetable oil (3 litres) in- vegetable oil in Jowhar market and wheat flour in- creased from $3.5 to $4.0 (14%). creased by 6%. • In Galkayo, prices of fruits and vegetables are fluctuat- • There is an increase in the number of checkpoints ing due to delays in the main corridor linking along Bosasso Beletweyne corridor due to the unrest Beletweyne. potatoes decreased by (-14%) compared situation in Hiraan region. This has led to an increase in to last week due to arrival of new supplies. Tomatoes the price of commodities as transporters are subjected prices are fluctuating between $1.2 and $1.4 per Kg. to increased taxation. red onions increased from $0.8 to $1.0 (25%) per Kg • The main road from Mogadishu to Beletweyne remains due to scarcity and watermelons decreased slightly by inaccessible hence, vehicles transporting commodities <5%. to Beletweyne are using an alternative route along the • In Galkayo, the daily labour rate remained the same for coastline. the last one month and high at 165,000 SO. SH. per • In Beletweyne, prices of imported food items are in- day. creasing compared to last week by 6% to 14%. For in- • In North Galkayo, the Somali Shilling is depreciating stance, vegetable oil increased by 6% per litre. Wheat hence the exchange rate between Somali Shilling is flour, pasta and rice increased by 7%, 10% and 14% fluctuating between 45,000 and 50,000 SO. SH per respectively per Kg. USD. • Fuel prices are stable in most markets in Banadir and Hirshabelle. For instance in Mogadishu price of both diesel and petrol is $0.5 per litre. • In Buloburto, prices of local cereals and imported food items remain the same as last week except pasta that decreased by 11% per Kg.

11.12.2020 Somaliland Puntland • No rains were reported throughout Somaliland, all roads • No rains were reported across all the livelihoods in are accessible and transport services are normal. In Puntland, all roads are accessible and transport services are addition, port operations in Berbera are ongoing without normal. In addition, port operations in Bossaso fully any challenge. resumed and are ongoing smoothly. • Cross border between Ethiopia and Somaliland is normal, • Effects of the devaluation of the local currency, Somali supply of fruits, vegetables and khat is ongoing and prices Shilling, continue in most main markets of Puntland. either remained the same or increased slightly compared to However, representatives of stakeholders including the last week. For instance, in Hargeisa, prices of potatoes, Authorities, private companies, exporters and importers tomatoes and carrots increased by 1% - 4%; onions and have agreed to use the Somali Shillings which they garlic remained the same as last week at 6,800 SL SH and boycotted two weeks ago. However, wholesalers in Bossaso 8,800 SL SH respectively. In addition, watermelons are still and Garowe, are reluctant in trading with Somali Shilling out of stock. notes. The exchange rate slightly improved but it is • Burco-Erigavo corridor which was under renovation is now fluctuating between 38,000 to 42,000 SO. SH. per USD. complete, transport services fully resumed and are ongoing • Wholesale prices of imported food items have increased in smoothly. most main markets in Puntland due to devaluation of the • In Burco, the price of livestock has decreased due to low Somali Shillings. For instance, wholesale prices of sugar, demand from foreign countries. For instance, the price of vegetable oil and some brand of rice increased by 5% to 7%. goat reduced from $70 to $60 (-14%) per head. • Camel and goal milk prices are decreasing due to calving • Fuel prices remain the same for four weeks in a row in most and kidding. For instance in most markets in Puntland markets and are low. For instance in Hargeisa, diesel is camel milk prices decreased averagely by 22%. currently trading at 4,200 SL. SH and petrol 5,000 SL SH. per • There is a limited supply of vegetables in Puntland regions litre. due to reduced farming activities. • Local cereals prices (white maize, red and white sorghum) • Livestock prices are fluctuating in most markets, for either remained the same or slightly increased compared instance, the local goat prices are fluctuating between $65 with last week in most markets throughout Somaliland. For and $75 per head due to devaluation of Somali Shilling. instance in Hargeisa, white sorghum prices remained the Pastoralists boycotted selling livestock in local currency, this same as last week. White maize and red sorghum increased affected small scale meat traders in most markets. by 3% and 10% respectively. • Cross border movement between Ethiopia and Puntland is • In most markets in Somaliland, camel milk prices remained restricted due to the ongoing internal conflicts in Ethiopia. the same for three weeks in a row but is high. For instance • Fuel prices are stable in most markets in Puntland in terms in Hargeisa and Burco, price of camel milk remained at of USD. 9,000 SL. SH per litre. • In Hargeisa, livestock slightly increased compared with last week. For instance, camel export quality prices increased South West from $690 to $695 per head and local goat increased from • In Qansaxdhere, prices of food items remain the same for $72 to $77 (7%) per head. two weeks in a row but are very high. In addition, availability of the food items is very low due to restriction of movement • The Somaliland Shilling depreciated slightly against the into and out of the town by insurgents (A.S), USD. For instance, in Hargeisa, the exchange rate between local currency and USD increased from 8,500 to 8,520 SL • In Hudur, prices of food items remain the same as last, but SH. per USD. are very high and availability is very low. In addition petrol prices increased by 20% compared to last week. • In Rabdhure, prices of imported food items remain the

same as last, week but are very high and availability is very Jubaland low. • The supply corridor linking Mogadishu and Doolow is now open after the reconstruction of the damaged bridge. • In Wanlaweyn, if the recurrent clan fights continue, they may lead to scarcity of food items hence price increases. • Cross border trade between Elwak/Somalia and Elwak/ Kenya is ongoing and there is high demand of goods in both • In Baidoa, fuel prices remained the same for three weeks in markets due to shortage as a result of recent Deyr rains. a row. Diesel and petrol is currently trading at $0.73 and $0.77 per litre respectively. • Operations in the port of Kismayo are normal and movement of commodities to the downstream markets is • In Baidoa, retail prices of local cereals (white maize, red and going on smoothly. white sorghum) and imported food items (rice, pasta, wheat flour, sugar, dates and vegetable oil) remain the same for six weeks in a row.

For further information contact the Somalia VAM ME and Logistics: Raul Cumba, [email protected] Julie Vanderwiel, [email protected]

11.12.2020| Joint Market and Supply Chain Update.