JAMA MOHAMUD ABDIAZIZ.Pdf

TELECOMMUNICATION INDUSTRY AND EMPLOYMENT CREATION IN GAROWE DISTRICT SOMALIA

ABDIAZIIZ JAMA MOHAMUD

REG: 1153-06176-01404

A THESIS REPORT SUBMITTED TO THE COLLEGE OF HUMANITIES AND

SOCIAL SCIENCES IN PARTIAL FULFILLMENT OFTHE REQUIREMENT

FOR THE AWARD OF THE MASTERSDEGREE OF ARTS

IN DEVELOPMENT STUDIES OF KAMPALA

INTERNATIONAL UNIVERSITY

OCTOBER, 2018

DECLARATION I, hereby declare that the research submitted to Kampala International Universityby me is my own original work. I am aware of the fact that in case my work is found to be plagiarized or not genuine, Kampala International University has the full authority to cancel my research work and I am liable to penal action.

APPROVAL I certify that this dissertation has been done under my supervision and is been submitted for examination with approval as a university supervisor.

Supervisor: Dr. Wandiba Augustine

DEDICATION I dedicate this work to my parents and family members for their moral support and the encouragement that they gave me during the study.

iii

ACKNOWLEDGEMENTS

I wish to acknowledge and be grateful to Allah for enabling me to reach this point in my academic life and I am so thankful for His unconditional protection.

Many thanks to my supervisor Dr. Wandiba Augustine who read my numerous revisions and helped me make some sense of the project.

I am also grateful to Kampala International University Hearing and Defense workshops for providing me with the conceptual means to complete this project.

I wish to acknowledge my research assistants who devoted their time and energy towards the accomplishment of this research report.

The moral support that they gave me too was overwhelming and came in handy at times when I was being challenged by various issues in the field. And finally, thanks to my family, tutors and numerous friends who provided me with consolidated support vital for the success of this project.

The biggest thank you goes out to my beloved Parents Fatima Mohamed Hassan and Jama Mohamud Ahmed for always believing in me and being supportive of my growth and education, your unconditional love and for your stable prayers. I am forever grateful of being your son.

As well as my beloved brothers and sisters, Idil Jama, Abdisamed Ahmed Jama, Rodo Jama and also my best friend Mohamed Osman Mumin all these brothers and sisters showing me support and encouraging me all the time to educate and improve my learning. Finally, I thank for my all classmate students.

TABLE OF CONTENTS DECLARATION ...... i

APPROVAL ...... i

DEDICATION ...... iii

ACKNOWLEDGEMENTS ...... iv

TABLE OF CONTENTS ...... v

LIST OF TABLES ...... ix

LIST OF FIGURES ...... x

LIST OF ACRONYMS ...... xi

ABSTRACT ...... xii

CHAPTER ONE ...... 1

INTRODUCTION...... 1

1.0 Introduction ...... 1

1.1 Background of the study ...... 1

1.1.1 Historical Perspective ...... 1

1.1.3 Conceptual Perspective ...... 7

1.1.4 Contextual Perspective ...... 8

1.2 Problem Statement ...... 10

1.3 Purpose of the study ...... 10

1.4 Objectives of the study ...... 11

1.5 Research Questions ...... 11

1.6 Scope of the study ...... 11

1.6.1 Geographical Scope...... 11

1.6.2 Subject Scope ...... 11

1.6.3 Time Scope ...... 12

1.7 Significance of the study ...... 12

CHAPTER TWO ...... 13

LITERATURE REVIEW ...... 13

2.0 Introduction ...... 13

2.1 Theoretical Review ...... 13

2.2 Conceptual framework ...... 16

2.3 Related Literature review ...... 16

2.3.1 Telecommunication industry operations performance in Somalia ...... 16

2.3.2 Contributions of the telecommunication industry in employment creation ...... 19

2.3.3 Challenges faced in the employment creation by the telecommunication industry ...... 21

2.5 Research Gap...... 30

CHAPTER THREE ...... 31

METHODOLOGY ...... 31

3.0 Introduction ...... 31

3.1 Research Design ...... 31

3.2 Study population ...... 31

3.3 Sample Size and Selection ...... 32

3.3.2 Response Rate ...... 33

3.4 Sampling technique ...... 33

3.4 Sources of data ...... 34

3.4.1 Primary data ...... 34

3.4.2 Secondary data ...... 34

3.5 Data Collection Instruments ...... 34

3.5.1 Questionnaire ...... 34

3.5.2 Interviews ...... 35

3.6 Validity and Reliability ...... 35

3.6.1 Validity of the study ...... 35

3.6.2 Reliability of the study ...... 36

3.7 Data Collection ...... 37

3.8 Data Analysis ...... 37

3.9 Ethical Considerations...... 38

CHAPTER FOUR ...... 39

DATA PRESENTATION, ANALYSIS AND INTERPRETATION ...... 39

4.1 Introduction ...... 39

4.2 Demographic traits of respondents ...... 39

4.3 State of the telecommunication industry operation performance in Garowe District Somalia...... 42

4.4 Contributions of the telecommunication industry in employment creation in Garowe District Somalia...... 46

4.5 Challenges faced in the employment creation by the telecommunication industry in Somalia...... 50

CHAPTER FIVE ...... 54

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS ...... 54

5.0 Introduction ...... 54

5.1 Discussion of the findings ...... 54

5.1.1 State of the telecommunication industry operations performance in Garowe Somalia. .. 54

vii

5.1.2 Contributions of the telecommunication industry in employment creation in Garowe District Somalia ...... 55

5.1.3Challenges faced in the employment creation by the telecommunication industry in Somalia...... 55

5.2 Conclusions ...... 56

5.3 Recommendations ...... 57

5.4 New knowledge acquired ...... 57

5.5 Limitations of the study...... 58

5.6 Areas for further research ...... 58

REFERENCES ...... 59

APPENDICES ...... 64

Appendix I: Questionnaire ...... 64

Appendix II: Interview Guide ...... 68

Appendix III: Map of Garowe ...... 69

viii

LIST OF TABLES Table 3.1: Category, target population, simple size and sampling technique that will be used in the study ...... 32

Table 3.2: Response Rate ...... 33

Table 3.3: Qualitative Sample of respondents ...... 33

Table 3.4: Determination of the Validity of the instrument ...... 36

Table 3.5: Reliability Test Results ...... 37

Table 3.6: Mean Interpretation ...... 38

Table 4.1: Demographic Characteristics of the Respondents ...... 40

Table 4. 2: State of the telecommunication industry operations in Garowe District Somalia...... 42

Table 4.3: Showing contributions of the telecommunication industry in employment creation in Garowe District Somalia ...... 46

Table 4.4: Challenges faced in the employment creation by the telecommunication industry in Somalia...... 50

LIST OF FIGURES Figure 1: Conceptual framework showing linkage between Telecommunication industry and employee creation ...... 16

LIST OF ACRONYMS GDP Gross Domestic Product

GSM Global System Model

GSM Grameen Village Handset

ILO International Labour Organization

MOFA Ministry of Food and Agriculture

OECD Organization Economic Committee for Development

OLC Ordinary Least Square

PASWE Puntland Agency for Social Welfare

PDRC Puntland Development Research Centre

SMEs Small and Medium Enterprises

SPSS Statistical Package for Social Scientists

STC Somali Telecommunication Company

UNDP United Nations Development Program

USD United States Dollar

WB World Bank

ABSTRACT The study was done to establish the role of the telecommunication industry in employment creation in Garowe, Somalia. The study objectives were to examine the telecommunication industry operations performance in Garowe Somalia, assess the contributions of the telecommunication industryin employment creation in Garowe Somalia and to establish the challenges faced in the employment creation by the telecommunication. The study employed mixed research design based on qualitative and quantitative research approaches. The design was used because it provides an elaborate explanation of the state of telecommunication industry and employment creation in Garowe Somalia. The study employed a population of 156 respondents who were contacted through the questionnaires and interview guides. The study findings pertaining the study reveal the mean of 2.458 was attained interpreted as Low, implying that the state the telecommunication operations in Somalia has a lot of lowness in the operations. The second research objective was that the telecommunication had a high contribution to employment creation in Garowe Somalia with the average response of 2.592, SD=0.912 interpreted as high meaning that the telecommunication industry finally the study findings reveal that there are several challenges faced by the telecommunication industry in Garowe Somalia in employment creation, the mean 2.706, SD=1.014, interpreted as high meaning that the changes in employment creation are numerous. The researcher concludes that the state of telecommunication industry, the study concludes that effectiveness in operations is low and need enhancement. The study also reveals that there are contributions of telecommunication to employment creations, based on the results the study conclude that the telecommunication industry need redress to improve operations for generating sufficient employment development. Finally the study on the third objective concludes that there are a series of challenges in operations that include technological, inflation and managerial challenges in the operations of the telecommunication industry. The study recommends that there is also need for the policy enhancement at individual organization and national level to facilitate the regulation of the telecommunication industry. Streamlining the operations of the telecommunication in management is fundamental. On the second objective:-There is need by the management of the telecommunication industry in enhancing employment creation through the raising of awareness for the generation of the terms of the business environment to facilitate the employment creation. On the third objective,there is need for creating and maintaining worthwhile employment for citizens, how to manage changing demands on the education systems and how to deal with foreign workers are challenges with no clear solutions.

xii

CHAPTER ONE INTRODUCTION 1.0 Introduction This chapter presents the background of study statement of the problem, purpose of the study, objectives of the study, research questions and scope of the study and significance of the study.

1.1 Background of the study The study background is based on four perspectives historical, theoretical, conceptual and contextual perspectives.

1.1.1 Historical Perspective The telecommunications industry and related verticals will continue to evolve dynamically over the next five years. Boundaries will blur among product categories as a range of industry actors shape customer demand scenarios. The role of telecommunication in the economic development attracted attention of many researchers for many years. Greenstein and Spillar (2006) all of them attempted to examine the telecommunication impact over the economic development and all of them confirmed that there is strong positive relationship exists between telecommunication and economic development of a country. By examining the period of 8 years of 24 countries Azim and Mahmood (2008) found that telecommunication development has a strong positive influence towards the GDP. Kateja and Jha (2008) investigated that there is a casual relationship between the continuous development of telecommunication and economic growth of India. They claimed that telecommunication is extraordinarily different from other infrastructure. As a result, it has positive and compulsory significant influence over the economic development.

1 higher purchasing power. Compared to that statistic in India, only 6 percent household has the capability to bear such a higher expenditure for the telecommunication service. On the other hand, Jain and Sridhar (2003) argued that the higher cost of providing telecommunication service to the general people can be significantly reduced in long term by using wireless technologies. In another interesting study, Waverman and Fuss (2005) found that telecommunication have positively significant impact on the growth of an economy. Based on this study another truth is also revealed that the impact of telecommunication on the economic growth in the developing countries is two times larger than developed country. Ross (1999) proved that privatization of telecommunication industry is significantly and positively related to the growth of teledensity which in return has significant impact on the economic development through network expansion and the improvement of the quality of network. Garreau (2008) proved that telecommunication reduces poverty as around the world. He also argued that teledensity has achieved an impressive growth around the globe where number of activated mobile phone is more than 3.3 billion while the total population of the earth is 6.6 billion. Patel (2007) also proved that in China there is rapid growth of mobile phone subscription. In 2003 it was 21 percent while in 2005 it was 38 percent and in 2006 it was 49 percent. The subscription numbers was increased to double percentage within three years.

2 office and Mia (2009), World Bank (2007) found that it is the mobile phone actually creates high paying jobs as well as socio economic development in the developed and developing countries. Based on the research conducted by Horst and Miller (2009) Kaul et al., (2008) and Knight and John (2008) postulated that in Bangladesh the initiation of Grameen village handset (GSM Handset) provided the opportunity to utilize the GSM Handset by accessing by the rural and local women entrepreneur. There is two way benefit of this initiation as the women are empowered and facilitated by the GSM Handset for being entrepreneur that results to make change in the socio-economic structure as well as the profit which is generated by the use of mobile phone can be used in other economic activities.

Deloitte (2008) reported revenue of the telecommunication operators has the significant influence over the GDP. Based on the taxation purpose Ovum (2006) also reported that mobile phone industry has contribution of 145 billion RS equivalent to 3.6 billion dollar by providing the taxation revenue towards the government. Again Deloitte also analyzed (based on the six countries: Bangladesh, Pakistan, Malaysia, Thailand, Ukraine and Serbia) and reported that government can captured the revenue directly from the mobile phone operations and services. As a result, mobile phone industry has the contribution of 26% revenue of the collection of total taxes and it rises to 29% if the regulatory fess which is mandatory to operate the business is included. Based on the study conducted in Egypt, Saudi Arabia and India Graber and Venkata (2013) claimed revenue from telecommunication service is the part of two or three percent of total GDP in those countries.

In Africa continent, Katz and Koutroumpis (2012) observed that telecommunication is one of the most promising sectors for creating job opportunities. Between 2011 and 2012, in Senegal and Mali telecommunication sectors created 8,100 direct jobs and almost 152,000 indirect jobs. Osotimehin et al., (2007) and Stette (1999) explained that in the developed world most of the advanced countries have deregulated the telecommunication sector which actually allows more investment in telecommunication sector which in return enhance the advancement of telecommunication technology, growth in private sector development as well as more employment opportunities. Moreover, form another study based on the Nigeria, Jenny and Isac (2001) postulated that telecommunication is such a blessing which enable the day laborers to call

3 to find job opportunities rather than making a trip worth of USD 40. Moreover, Tella and Adesoye (2007) opined that in Nigeria the mobile operators have tremendous significance in term of generating employment opportunities. The mobile telecommunication industry so far created 10,000 job opportunities where people are directly employed as well as 1,000,000 job opportunities where people are indirectly employed. Again Soyinka (2008) and Ndukwe (2008) opined that GSM business in Nigeria has a great contribution towards the economy in case of GSM card printing, distribution and recharge. These activities save almost 150 million dollars per month as well as provide job opportunities. Klonner and Nolen (2010) explained that the presence of mobile network has the ability to create new markets and services. For an example in South Africa the presence of mobile (GSM) network decrease the unemployment rate significantly. Batziillis et al., (2010) also explained that in Malawi because of the presence of mobile network the participation of female labor is increased.

It also reported that limited employment opportunities are created by the mobile phone operators for themselves but they influence other sectors for jobs creations. Moreover, the jobs which are created in the mobile phone operators are highly paid jobs. The mobile economy GSMA (2014) reported that in 2013 in the Sub-Saharan Africa mobile industry created 2.4 million employments. Most of these jobs include distribution of retails services, selling recharge card and handsets. It proved that mobile network operation has a significant influence over the jobs creation. But it is also true that only 300,000 persons were directly employed by the mobile phone operators which are considered as high paying jobs. Again the mobile economy GSMA (2015) reported that in 2014 worldwide mobile operators created 12.8 million direct employments. Moreover 11.8 million jobs can be defined as indirect jobs. The accumulation of the direct and indirect jobs is 25 millions in 2014. Boateng and Yellen (2010) opined that the diffusion of mobile phone has greater influence over the job market with high paying and high quality jobs both in cities and rural areas.

In Somalia, private companies have done for public services providing the basic services and maintaining the corporate social responsibility since the collapse of Somali republic in 1991. Private telecommunication companies have made the telephone system and the internet possible to communicate, send and receive a lot of information quickly. According to Naaji (2012), the major dilemma in Somali communication companies, they do not measure the satisfaction of

4 their customers, while the customer is related directly to the profitability. If our customers are happy, they tend to be loyal. In addition, if they are loyal they not only buy more, but also attract other customers. Well-established research found that, for many companies, an increase of 5% in customer retention could increase profits by 25% to 95%. Researchers were use the definition of Ranaweera and Prabhu (2003) customer retention as the tendency for customers to stay with their services providers because it is clear, concise statement with more meaningful. Since there is a need to investigate the kind of relationship that could exist between the employee job satisfaction and the customer retention in Some Selected Telecommunications Industry in Mogadishu, this study examine the relationship between employee job satisfaction and customer retention.

According to the researchers knowledge awareness it seems that most telecommunication companies exist in Somalia do not provide more consideration to their employees as well as to their customers, they do not measure the satisfaction of their customers, while the customer is related directly to the profitability and it seems that they use product-centered philosophy instead of costumer-centered philosophy (Naaji, 2012).

Garowe is the third largest city in Puntland after Bosaso and Galkayo. Situated in the Nugal province in the geographical center of the region, it is the seat of the regional parliament, the presidential palace and government ministries. The employment creations challenges exist in Garowe, the state of the organizations supporting employment creation are low. A number of NGOs also have their main offices in the city, including the local Puntland Development Research Center (PDRC). The PDRC plays a key role in research and funding for the development of peace and effective governance initiatives in Puntland. Additionally, the Puntland Agency for Social Welfare (PASWE) is headquartered here. Founded in May 2009 by the regional administration, it provides medical, educational and counseling support to vulnerable groups and individuals such as orphans, the disabled and the blind. PASWE is overseen by a board of directors, which consists of religious scholars (ulema), businesspeople, intellectuals and traditional elders.

Garowe district in a bid to improve employment creation launched a new house numbering system in the administrative capital. The initiative saw unique numerical digits assigned to each residential and commercial street address, as well as to land plots. Additionally, the Garowe Municipality launched a citywide cleaning campaign in March 2015. The government-public

5 partnership is aimed at beautifying and sanitizing the Horsed suburb and other areas in the Puntland regional state's administrative capital Garowe (Urban Baseline Report, 2015). Attended by the area's political elite, traditional elders members of the business community, intellectuals and other civil society representatives, the autonomous Puntland State of Somalia was subsequently officially established so as to deliver services to the population, offer security, facilitate trade, and interact with both domestic and international partners (Garowe Urban Baseline Report, 2015).

1.1.2 Theoretical Perspective The study was based on stakeholder theory is a theory by Freeman (1984) and general theory of employment by Keynes theory of (1936).

This study was based the stakeholder theory is a theory by Freeman (1984) who argued that organizational management and business ethics addresses morals and values in managing an organization. It was originally detailed by Freeman in the book Strategic Management: A Stakeholder Approach identifies and models the groups which are stakeholders of a corporation, and both describes and recommends methods by which management can give due regard to the interests of those groups. The theory provides that management of the organization set avenues and modes of work operations that guide their operation in a way of suiting the interest of the stakeholders. The management of the telecommunication industry can improve management and ethical strands by increasing their mode of operations in the decisions they take that can include establishing the new branches, expanding the employment base through its activities that can generate the environment of operation with employment creation.

The study was based general theory of employment by Keynes theory of (1936), the theory is on employment, interest and money written by the English economist John Maynard Keynes. The book, generally considered to be his magnum opus, is largely credited with creating the terminology and shape of modern macroeconomics. Especially in relation to the proposition that a market economy tends naturally to restore itself to full employment after temporary shocks, Regarded widely as the cornerstone of Keynesian thought, the book challenged the established classical economics and introduced important concepts such as the consumption function, the multiplier, the marginal efficiency of capital, the principle of effective demand and liquidity preference.

The central argument of The General Theory is that the level of employment is determined not by the price of labour, as in classical economics, but by the spending of money (aggregate demand). Keynes argues that it is wrong to assume that competitive markets will, in the long run, deliver full employment or that full employment is the natural, self-righting, equilibrium state of a monetary economy. On the contrary, underemployment and underinvestment are likely to be the natural state unless active measures are taken. One implication of The General Theory is that an absence of competition is not the main issue regarding unemployment; even reducing wages or benefits has no major effect. Keynes sought to do nothing less but upend the conventional economic wisdom.

1.1.3 Conceptual Perspective Telecommunication industry incorporates the transmission of signs, signals, messages, words, writings, images and sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems (World Bank, 2013). Telecommunication occurs when the exchange of information between communication participants includes the use of technology. It is transmitted either electrically over physical media, such as cables, or via electromagnetic radiation. Such transmission paths are often divided into communication channels which afford the advantages of multiplexing. (Wheen, 2014)

OECD (2012) argues that telecommunication industry refers to early means of communicating over a distance and these include visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs. Other examples of pre-modern long-distance communication included audio messages such as coded drumbeats, lung-blown horns, and loud whistles. Twenty and 21st century technologies for long-distance communication usually involve electrical and electromagnetic technologies, such as telegraph, telephone, and teleprinter, networks, radio, microwave transmission, fiber optics, and communications satellites.

Telecommunication over fixed lines is called point-to-point communication because it is between one transmitter and one receiver. Telecommunication through radio broadcasts is called broadcast communication because it is between one powerful transmitter and numerous low- power but sensitive radio receivers. Telecommunications in which multiple transmitters and

7 multiple receivers have been designed to cooperate and to share the same physical channel are called multiplex systems (Haring, 2008).

For purposes of the Employment Creation Investor visa, an “employee” is defined by USCIS as an individual who provides services or labor for the commercial enterprise, and who receives wages or remuneration directly from the enterprise. A “qualifying employee” is a U.S. citizen, a lawfully admitted permanent resident, or other immigrant lawfully authorized to be employed in the United States. The definition may include conditional residents, temporary residents, as lees, refugees, or foreign nationals remaining in the U.S. under suspension of deportation. However, it does not include a foreign national entrepreneur, his or her spouse, sons or daughters, or any nonimmigrant foreign national. An exception to the requirement of the creation of ten full-time positions is made in the case where a foreign national makes the required investment in a troubled business (Markey, 2002)

Anderson (2017) argued that while employment creation in developing countries is high on the agenda of most donor agencies, there are different views on how to achieve it. This page brings together key publications on the theme offering insights into major obstacles and potential solutions to job creation, as well as options for donor support. The provision of new opportunities for paid employment, especially for those who are unemployed.

Stone (2005) contend that employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be a corporation, for profit, not-for- profit organization, co-operative or other entity is the employer and the other is the employee.

1.1.4 Contextual Perspective Somalia is one of the poorest countries in the world, with a per capita income of US$ 226; 73% of Somalis are poor, 43% extremely poor. The country is deeply affected by conflict, which has caused extreme poverty, vulnerability and a complex set of political and social grievances that remain a threat to the country. Despite the turmoil and instability in Somalia, business is booming compared to many other sub-Saharan countries in Africa. The livestock sector is the backbone of the economy and the main source of livelihoods: 60% of the population generates 40% of GDP from livestock production. More than 70% of the population is under 30, and

8 unemployment and underemployment are widespread, particularly among young people in the country. Despite the prevalence of several industries less employment creation prevail in Somalia with limited and minimal people in the industry to participate in the employment creation and the telecommunication industry having a limited contribution to employment (Markey, 2002).

In Somalia ILO is supporting local governments in orienting public investment in infrastructure to improve access to basic services towards the optimal creation of productive and decent employment. This has been achieved by influencing the development of decentralized policy, legislative, institutional and regulatory frameworks that support employment intensive public investment, public private partnerships in service delivery and local economic development. ILO plays the led role in supporting local governments fulfill their mandate of creating an enabling environment for local economic development; this involves facilitating and engaging the private sector and civil society in strategic planning and interventions where local resources and opportunities for local business are recognized and nurtured and bottlenecks addressed (Haring, 2008).

The telecommunication industry in Somalia constitutes a reasonable percentage on the growth and development of Somalia, though the revelation is to this extent, the industry has not grown to a greater degree and extent. The employment situation is bleak for Somali youth, as young people (15-24) struggle to find work, especially in the formal sector. Young Somalis cannot afford unemployment because of the absence of social protection and therefore face underemployed and are occupied in survival activities such as self-employment or as unpaid family workers. They often engage in low-productive and poor quality jobs mostly in the informal economy. Somalia's private sector has a serious competitiveness problem, which translates among others into important youth unemployment and a weak export performance. In fact, the main cause of youth unemployment in Somalia appears to be a result of “demand side” factors, i.e. low demand for jobs by companies (Sulivan, 2007).

1.2 Problem Statement Unemployment is key challenge that several countries across the globe including developing and developed countries are grappling with and has had devastating impact on the countries way of Living. Unemployment in Garowe Somalia is high, many people are unemployed, the ILO, Somalia 2016 provide that close to 70% of the people in Somalia are unemployed and this present serious challenges to the state of people and conditions of living. The employment creation challenges in Garowe are limited by the presence of few employment mechanisms existing in the country, unemployment problem in Garowe district exist in the form of failed access to working for pay coupled with hindered access to health, food, education (Garowe District report, 2017) and other social needs that has put the country at stake and some people affiliate it to political turmoil in Garowe district Somalia that has affected growth and development of the countries (Garowe Urban Baseline Report, 2015). The situation of employment creation in Somalia is low according to the ILO report (2014). The situation of employment creation in Garowe is low given the situation of political turmoil spread across the country and low levels of trade plus limited prevalence of telecommunication companies with only Somtel and Golis telecom being the only telecom and major employment providers in the country (World Bank, 2015). Youth in Garowe Puntland Somalia are the greatest asset for the present and the future, yet they also represent group that is seriously vulnerable when it comes to unemployment. Despite all these causes no study has been conducted to find out the different industries contributions to employment creation. Hence this study set to establish to contribution of the telecommunication industry on employment creation in Garowe Somalia while assessing the challenges faced by the telecommunication sector in employment creation and operations of telecommunication industry in employment creation in Garowe district.

1.3 Purpose of the study The study was to establish the role of the telecommunication industry in employment creation in Garowe District, Somalia.

1.4 Objectives of the study i) To examine the telecommunication industry operations performance in Garowe district Somalia. ii) To assess the contributions of the telecommunication industry in creating employment in GaroweDistrict Somalia. iii) To establish the challenges faced in the employment creation by the telecommunication industry in Garowe district Somalia.

1.5 Research Questions i) What is the telecommunication industry operations performance in Garowe District Somalia? ii) What are the contributions of the telecommunication industry in creating employment in Garowe District Somalia? iii) What are the challenges faced in the employment creation by the telecommunication industry in Garowe District Somalia?

1.6 Scope of the study 1.6.1 Geographical Scope The study was carried out in Garowe district Somalia. Garowe district is located an eastern Somalia in addition Garowe is capital city of Puntland state of Somalia See the map attached in appendix (iii). The study was conducted in the telecommunication companies of Golis and Somtel telecommunication companies and Golis employees plus political leaders. Garowe district was selected because of the existence of low employment creation occasioned by few companies that could provide employment to people, the low degree of the two only reasonable private companies that can provide employment is also a factor for conducting a study in Garowe district.

1.6.2 Subject Scope The study was conducted on the telecommunication industry as the independent variables and employment creation as the dependent variable. The focused on determining the state of telecommunication industry operations performance in Garowe district, On assessing the

11 contribution of the telecommunication industry on employment creation, the challenges faced in the employment creation and examining the state of telecommunication industry operations.

1.6.3 Time Scope The study focused on the time frame between 2014 to 2017,this time is chosen because it is the recent period during which the district has experienced employment creation constraints. The time chosen provide a framework that can assess the status quo of employment creation in Garowe Somalia and to get in depth data and information about unemployment in Garowe District on that period.

1.7 Significance of the study The study will bring on board mechanisms that can be attained in the employment creation by several industries. The study provides guidance on the mechanisms through which employment creation can be enhanced in Garowe district.

The study will guide future researchers through providing literature that will be used by the future researcher. The study provides a reference for future researchers as means of evidence for the study.

This will help the telecommunication industry to redefine approaches that would facilitate achievement of their objectives and creation of employment for the people in Garowe District and Somalia in general.

The study also adding to the existing knowledge regarding the telecommunication industry in Somalia.This will provide mechanism for addressing the employment issues.

CHAPTER TWO LITERATURE REVIEW 2.0 Introduction This chapter presents the theoretical framework related literature relevant to the study variables. The review consists of the following sections: theoretical review, conceptual framework, the presentation of the study based on the study objectives. The presentation of this chapter is based on the research objectives.

2.1 Theoretical Review

Freeman's Strategic Management: A Stakeholder Approach is widely cited in the field as being the foundation of stakeholder theory, although Freeman himself credits several bodies of literature in the development of his approach, including strategic management, corporate planning, systems theory, organization theory, and corporate social responsibility. A related field of research examines the concept of stakeholders and stakeholder salience, or the importance of various stakeholder groups to a specific firm. More recent scholarly works on the topic of stakeholder theory that exemplify research and theorizing in this area include Friedman and Miles (2002) and Phillips (2003)

Donaldson and Preston argue that the theory has multiple distinct aspects that are mutually supportive: descriptive, instrumental, and normative. The descriptive approach is used in research to describe and explain the characteristics and behaviors of firms, including how companies are managed, how the board of directors considers corporate constituencies, the way that managers think about managing, and the nature of the firm itself. The instrumental approach uses empirical data to identify the connections that exist between the management of stakeholder groups and the achievement of corporate goals (most commonly profitability and efficiency goals).

The study was also based general theory of employment by Keynes (1936).The General Theory of Employment, Interest and Money was written by the English economist John Maynard Keynes. The book, generally considered to be his magnum opus, is largely credited with creating the terminology and shape of modern macroeconomics. Especially in relation to the proposition that a market economy tends naturally to restore itself to full employment after temporary shocks, Regarded widely as the cornerstone of Keynesian thought, the book challenged the established classical economics and introduced important concepts such as the consumption function, the multiplier, the marginal efficiency of capital, the principle of effective demand and liquidity preference.

Further modeling, beginning in the late 1970's, simplified and clarified the theory. Steven Salop (1979) stripped money from the turnover model, and Guillermo Calvo (1979) built a similar model of the natural rate based on shirking instead of quitting, an easier case. An explicit treatment of the optimal incentive wage as a function of the unemployment rate was begun by Solow (1979) and further developed in a model of all-shirking or no-shirking by Shapiro and Stiglitz (1984). Thus the labor-market equilibrium point on the equilibrium

Neo-Keynesian theory the theory that if aggregate demand is kept deficient, causing the inflation rate to fall steadily ahead of the expectations on which firms based their money wages and prices, unemployment will seek a level above the natural rate is often an essential tool. But the premise in the neo-Keynesian interpretation, that monetary policy in the West has been predominantly disinflationary since the late 1970's here and earlier in Europe, shrinking the expected inflation rate by keeping actual inflation under it, is false. Central banks attacked inflation in the early 1980's and again in the early 1990's. But they were only reacting to the rising inflation of the 1970's and the late 1980's, not creating a brave new world of near-zero inflation. In the United States, there is no cumulative decline of inflation since the mid-1960's, In 1986 and again in 1994 the annual inflation rate subsided merely to its level in 1967, about 2.5 percent. In Germany too, inflation returned last year only to its 1960's average, also 2.5 percent.

This long-run stability of the inflation norm also refutes the old-Keynesian hypothesis that the equilibrium unemployment rate has been pushed up by policymakers' achievement of reduced inflation seen as a move down a negatively sloped long-run Phillips curve. Besides, the Phillips curve remains dead. If one asks whether the residuals of the reduced-form cross-country time- series regression equation for the unemployment rate of 17 OECD countries in my book (Phelps, 1994 Ch.17) are correlated over time with the level of the inflation rate, the answer is basically no. The correlation has the wrong sign for most countries. (It is significantly negative only for Denmark, while significantly positive for Belgium, Spain, and the United States)

2.2 Conceptual framework The conceptual framework below illustrates how variables in the study are conceptualized and related. Figure 1: Conceptual framework showing linkage between Telecommunication industry and employee creation Telecommunication Industry Employment Creation

. Mobile telecommunication . Business start up . Business expansion . Mail telecommunication . Social services . Audio and Video development telecommunication

Source: Adopted from Literature review and Modified by the researcher, 2017

The conceptual framework provides the variable of this study as provided in the conceptual framework above, the independent variable is the telecommunication industry that is conceptualized into mobile telecommunication, mail telecommunication and audio and video telecommunication. The dependent variable which is employment creation that is conceptualized through business startup, business expansion and social services development, the linkage between the variables shows that telecommunication industry of positive operation has a positive contribution to employment.

2.3 Related Literature review The related literature review is done based on objective by objective

2.3.1 Telecommunication industry operations performance in Somalia Communications in Somalia encompasses the communications services and capacity of Somalia. Telecommunications, internet, radio, print, television and postal services in the nation are largely concentrated in the private sector. Several of the telecom firms have begun expanding their activities abroad. The Federal government operates two official radio and television networks, which exist alongside a number of private and foreign stations. Print media in the country is also

16 progressively giving way to news radio stations and online portals, as internet connectivity and access increases. Additionally, the national postal service is slated to be officially relaunched in 2013 after a long absence. In 2012, a National Communications Act was also approved by Cabinet members, which lays the foundation for the establishment of a National Communications regulator in the broadcasting and telecommunications sectors (Christopher, 2008).

After the start of the civil war, various new telecommunications companies began to spring up in the country and competed to provide missing infrastructure. Somalia now offers some of the most technologically advanced and competitively priced telecommunications and internet services in the world. Funded by Somali entrepreneurs and backed by expertise from China, Korea and Europe, these nascent telecommunications firms offer affordable mobile phone and internet services that are not available in many other parts of the continent. Customers can conduct money transfers (such as through the popular Dahabshiil) and other banking activities via mobile phones, as well as easily gain wireless Internet access (Monty, 2010).

After forming partnerships with multinational corporations such as Sprint, ITT and Telenor, these firms now offer the cheapest and clearest phone calls in Africa. These Somali telecommunication companies also provide services to every city, town and hamlet in Somalia. There are presently around 25 mainlines per 1,000 persons, and the local availability of telephone lines (tele-density) is higher than in neighboring countries; three times greater than in adjacent Ethiopia (Hormuud, Somtel, 2014) Prominent Somali telecommunications companies include Somtel Network, Golis Telecom Group, Hormuud Telecom, Somafone, Nationlink, Netco, Telcom and Somali Telecom Group. Hormuud Telecom alone grosses about $40 million a year. Despite their rivalry, several of these companies signed an interconnectivity deal in 2005 that allows them to set prices, maintain and expand their networks, and ensure that competition does not get out of control.

In 2008, Dahabshiil Group acquired a majority stake in Somtel Network, a Hargeisa-based telecommunications firm specializing in high speed broadband, mobile internet, LTE services, mobile money transfer and mobile phone services. The acquisition provided Dahabshiil with the necessary platform for a subsequent expansion into mobile banking, a growth industry in the regional banking sector Central Intelligence Agency (2011). In 2014, Somalia's three largest

17 telecommunication operators, Hormuud Telecom, Nation Link and Somtel, also signed an interconnection agreement. The cooperative deal will see the firms establish the Somali Telecommunication Company (STC), which will allow their mobile clients to communicate across the three networks. Investment in the telecom industry is held to be one of the clearest signs that Somalia's economy has continued to develop. The sector provides key communication services, and in the process facilitates job creation and income generation (Ahmed, 2012).

Somalia's telecommunication sector is governed by the National Communications Law (also called the Telecoms Act) that was signed into law by president Abdullahi Farmajo on 2 October 2017, after passing the Cabinet and the two Houses of Parliament (Senate and House of the People). It entered into effect immediately. This Act had a very long way in coming, as its drafting had already started in 2005. It was already approved by the Somali Cabinet in 2012. The new law paves the way for the establishment of a National Communications Regulatory Commission in the broadcasting and telecommunications sectors. The bill was passed following consultations between government representatives and communications, academic and civil society stakeholders. According to the Ministry of Information, Posts and Telecommunication, the Act is expected to create an environment conducive to investment and the certainty it provides will encourage further infrastructural development, resulting in more efficient service delivery (Christopher, 2008)

Somalia established its first ISP in 1999, one of the last countries in Africa to get connected to the Internet. According to the telecommunications resource Balancing Act, growth in internet connectivity has since then grown considerably, with around 53% of the entire nation covered as of 2009. Both internet commerce and telephony have consequently become among the quickest growing local businesses. According to the World Bank, the number of internet users in Somalia rose from only 200 in the year 2000 to 1.8% of the population in 2015, with the percentage continuing to rise. The number of mobile cellular subscriptions rose much faster, from 1.1 per 100 people in 2000 to 52.5 per 100 people in 2015. The Somali Telecommunication Association (STA), a watchdog organization that oversees the policy development and regulatory framework of Somalia's ICT sector, reported in 2006 that there were over half a million users of internet services within the territory. There were also 22 established ISPs and 234 cyber cafes, with an annual growth rate of 15.6%.

Hormuud, Somtel (2014) contend that as of 2009, dial up, wireless and satellite services were available. Dial up internet services in Somalia were among the fastest growing on the continent, with an annual landline growth rate of over 12.5%. The increase in usage was largely due to innovative policy initiatives adopted by the various Somali telecom operators, including free local in-town calls, a flat rate of $10 per month for unlimited calls, a low charge of $0.005 per minute for Internet connections, and a one-time connection fee of $50. Global Internet Company, a firm jointly owned by the major Somali telecommunication networks Hormuud Telecom, Telcom Somalia and Nation link, was the country's largest ISP (World Development Indicators, 2017).

2.3.2 Contributions of the telecommunication industry in employment creation The role of telecommunication in the economic development attracted attention of many researchers for many years. Greenstein and Spillar (2006) all of them attempted to examine the telecommunication impact over the economic development and all of them confirmed that there is strong positive relationship exists between telecommunication and economic development of a country. By examining the period of 8 years of 24 countries Azim and Mahmood (2008) found that telecommunication development has a strong positive influence towards the GDP. Kateja and Jha (2008) investigated that there is a casual relationship between the continuous development of telecommunication and economic growth of India. They claimed that telecommunication is extraordinarily different from other infrastructure. As a result, it has positive and compulsory significant influence over the economic development.

As an imperative element of telecommunication, teledensity and its impact over the economy was investigated by conducting a comprehensive study in Iran based on the data from 1960s to 2012, Sadr (2012) found that there is a positive relationship between GDP and telephone density. In developing country is low because of the higher cost of providing telecommunication service. In the developed countries more than 90 percent household can easily enjoy the telecommunication service because of their higher purchasing power. Compared to that statistic in India, only 6 percent household has the capability to bear such a higher expenditure for the telecommunication service. On the other hand, Jain and Sridhar (2003) argued that the higher cost of providing telecommunication service to the general people can be significantly reduced in

19 long term by using wireless technologies. In another interesting study, Waverman and Fuss (2005) found that telecommunication have positively significant impact on the growth of an economy. Based on this study another truth is also revealed that the impact of telecommunication on the economic growth in the developing countries is two times larger than developed country. Privatization of telecommunication industry is significantly and positively related to the growth of teledensity which in return has significant impact on the economic development through network expansion and the improvement of the quality of network. Garreau (2008) proved that telecommunication reduces poverty as around the world. He also argued that teledensity has achieved an impressive growth around the globe where number of activated mobile phone is more than 3.3 billion while the total population of the earth is 6.6 billion.

In an empirical study Shiu and Lam (2007) found that there exists unidirectional causal relationship between telecommunication investment and economic development in those countries which have a lower income level. This result expresses that if the investment in the telecommunication investment is reduced then there is a small or no impact on the growth of the economy. Opposed to the results of this study, based on the data of 45 countries postulated that in the developing countries the impact of telecommunication investment is way more significant than the most developed countries. Telecommunication is accountable for the increasing demand for the input used in the production which eventually also increases the total national output. Sey and Adugu (2008) claimed that mobile phone is the prime form of communication in Ghana. They also argued that in the developing countries investment in the mobile phone sectors has a political as well as economic benefit. This is because cities are centre point for the commercial business, government activities, banks etc which required telecommunication services to link with other parties and offices. World Bank (2012) found that it is the mobile phone actually creates high paying jobs as well as socio economic development in the developed and developing countries. Based on the research conducted by Horst and Miller (2009), the authors provide that the proved that the investment in wireless telecommunication technology has a profound and positive relationship with the economic development. Knight and John (2008) postulated that in Bangladesh the initiation of Grameen village handset provided the opportunity to utilize the GSM Handset by accessing by the rural and local women entrepreneur. There is two way benefit of this initiation as the women are empowered and facilitated by the GSM Handset for being

20 entrepreneur that results to make change in the socio-economic structure as well as the profit which is generated by the use of mobile phone can be used in other economic activities.

Deloitte (2008) reported revenue of the telecommunication operators has the significant influence over the GDP. Based on the taxation purpose, Mobile phone industry has contribution of 145 billion RS equivalent to 3.6 billion dollar by providing the taxation revenue towards the government. Again Deloitte also analyzed (based on the six countries: Bangladesh, Pakistan, Malaysia, Thailand, Ukraine and Serbia) and reported that government can captured the revenue directly from the mobile phone operations and services. As a result, mobile phone industry has the contribution of 26% revenue of the collection of total taxes and it rises to 29% if the regulatory fess which is mandatory to operate the business is included.

Bardan (2007) argued that broadband internet is the key point of many crucial services as well as a prerequisite of innovation and worldwide growth. As a result accessing to the internet through broadband is the way to construct a knowledge based economy. The authors observed that the continuous advancement of internet has significantly positive relationship with the economic growth of all the OCED countries. Another interesting empirical study based on the shadow economy with a panel data of 152 countries over 9 years from 1999 to 2007 and he observed that there is relationship between internet usage and the size of a shadow economy which has influence over the GDP per capita. Internet usage has a strong influence over the tourism business of Africa. Internet is impelling the international trade of economy around the world. Koutroumpis (2012) all of these scholars researchers argued that internet increase the number of output for the productivity which has a tremendous effects on the growth of economy. Lechman and Marszk (2015) proved that internet tremendously enhance the investment in the economy by promoting the exchange traded funds.

2.3.3 Challenges faced in the employment creation by the telecommunication industry According to the World Bank (2013) Perhaps the greatest single issue facing the economies of the Middle East and North Africa region is the challenge of equipping its people with good jobs.‟ Within the GCC region the Economic and Social Commission for Western Asia (ESCWA) (2014) estimates youth unemployment, of both sexes, at 12 per cent in Qatar (but over 50 per cent for females), 21 per cent in Bahrain, 26 per cent in Saudi Arabia and 49 per cent in Oman.

There were no data available for Kuwait and the UAE. Most researchers, such as those who wrote the Arab Human Development Report a lack of reliable data in the region (even for those countries that provide some information) is symptomatic of the governments‟ lack of willingness to recognize the magnitude of the problem. However even when oil prices are high it is becoming impossible for governments to make available enough public sector jobs for all those entering the labour market. The rise in unemployment among young nationals, according to Girgis (2012) has fuelled resentment at the jobs being held by foreigners even when the jobs are not ones attractive to citizens.

Reducing unemployment is a serious challenge for most governments. Unemployed workers (or potential workers) are a waste of a nation‟s resources, a drain on the taxpayers (or informal support networks) and a pool of possible or actual troublemakers. For a long time, the governments were able to deal with unemployment by creating government jobs for their relatively few citizens, or had sufficient income from oil exports to provide generous social allowances and could keep young people occupied in an undemanding education system. However, the populations have grown while the income from oil declined (at least until 2004) so that in recent years unemployment of citizens has risen to levels where real jobs have to be created and many foreign jobholders sent away (ESCWA, 2015).

The governments are the major employers of citizens throughout the countries. Citizens prefer to wait for a government job rather than take a private sector job even when they know that the wait might last years. The governments are the employer of „first‟ and „final‟ resort. When governments had high incomes they created many jobs but when income dropped, and for most of the past two decades the governments of the GCC have had budget deficits, they have rarely cut employment in government sectors. Even with recent rises in the price of oil the income is still much less in real terms than it was three decades ago and on a per capita basis is around half of the

Kapiszewski (2001) argue that the shift in challenge of creating employment for citizens to the private sector with quotas imposed, certain job categories reserved for citizens and fines levied for non-compliance. This is a symptom of the interventionist approach often taken by the

22 governments of the region. The main hindrances to investment in the region were „red tape, judiciary system efficiency and corruption‟. A significant number of companies owned by influential citizens is able to prosper in this business environment. These influential citizens prefer to have agencies or to be intermediaries or be in partnerships with foreigners rather than develop entrepreneurial businesses, which could create major employment opportunities for fellow nationals. Less influential citizens have to overcome many obstacles put in their way by government officials. The types of businesses owned by these less influential people are exactly the ones that the ESCWA (2015) believes can make important contributions to employment creation. Although changes are promised, the region lacks a modern legal system with an independent judiciary and protection for individuals including enforceable employment rights and property rights, which would support less influential business owners.

The private sector has been shielded by governments from the real cost of employing labour as there is no tax on income (so the employees will work for less in the „tax free‟ environment) while basic foodstuffs and healthcare is often subsidized. However, the shielding‟ from real costs and outside competition means that the private sector is not focused on using labour efficiently to get productivity gains. Lopez-Claros (2005) show that labours productivity in the region is very low with the preference being for low cost and low skills rather than high skills, high wages and high productivity. Gardner (2003) believes that the private sector is more interested in rent seeking (in the economic sense of being the difference between market price and the opportunity cost of production) rather than entrepreneurial business opportunities so the country businesses will be unable to face foreign competition. While the region‟s stock markets have soared in the years since 2002, entrepreneurs have been more concerned to maximize their local knowledge of potential gains in stock rather than productive enterprises that might create jobs. Even the real estate booms in the region are based on cheap foreign labour in construction and services that produce few jobs for locals.

Adding to the problem of creating enough employment for male citizens, there are now more female citizens seeking work as demonstrated by Gardner (2003). Those from outside the region often think that there are severe restrictions on the employment of women in the GCC. However, women are active in the employment market although there are restrictions especially in Saudi

Arabia. Throughout the conservative families are reluctant to have their female members travel far from home or to mix with non-family. For Arab families there is aib or shame in not being able to provide for their dependants (Kapiszewski, 2001). This aib of not being able to support their families may be a major reason for the low rates of participation by Arab women in the formal labour market which Lopez-Claros (2005) claims is the lowest in the world. Winckler (2012) quotes the rates of female participation in employment to be around 50 per cent in Europe but below 25 per cent in the workforce in Kuwait (which is the most open of the GCC countries to women working), and around 10 per cent in Saudi Arabia (where women are mainly employed in education and health services). There is less aib in working for the government than in working for the private sector, so women seeking employment add to the pressure to have public sector jobs.

There is growing participation of women in the employment market partly because cultural norms are changing in countries such as Kuwait, Qatar and Bahrain, and ways are being found in Saudi Arabia (Calvert and Al-Shetaiwi, 2012) to change working practices to enable women to work in a culturally acceptable way. Women are not taking over jobs currently held by foreigners because the majority of expatriates are employed in unskilled or domestic service jobs and this type of work would certainly not attract female citizens. Therefore new types of jobs will have to be created, especially as Girgis (2012) shows that in the female citizens are generally better educated than male citizens so could be capable of performing higher levels of jobs. Alternatively women could be encouraged to set up their own businesses as found that women are often more successful than men at running small enterprises. The bias against women in the labour markets (ESCWA, 2015) will continue to hamper women‟s participation and it can be expected that the bias will become even stronger when the competition for jobs is not against foreigners but against male citizens.

The barriers to female economic participation certainly appear to have their roots in cultural practices, yet for those who are determined, it is possible to succeed. An ILO study in Hargeisa and Mogadishu found that almost half (47%) of female entrepreneurs had not received any education and could neither read nor write.30 Similarly, a UNDP report found that educated women, especially those from the diaspora, are beginning to break into sectors that have been

24 traditionally dominated by men, such as livestock, fishery and petroleum importing.31 Indeed, female focus group participants in this study expressed a strong desire to start their own businesses, particularly in selling female clothing: “Businesses like wholesale/retail for clothing are the most profitable. The demand for women‟s clothing is high female focus group participant, Beletweyne. The question of female economic participation was explored further in the current study. Around three quarters of respondents (73%) think that women face barriers to employment (Pieter, 2013).

The biggest barriers are considered to be the facts that women are uneducated/illiterate or that they do not have the right skills. A focus group discussion with women in Beledweyne found that women themselves considered a lack of skills and a lack of local connections to be among the biggest barriers. These are unquestionably important inhibitors of female employment, but they obscure deeper, equally important, socio-cultural phenomena. 43% of respondents report that the inability to travel alone is a barrier to women‟s employment, and notable proportions say that women are prevented from working by their families (36%), or because they have to look after children (34%) or perform household chores (17%) (Pieter, 2013). Low income levels are a major contributing factor to the present state of low employment creation among the youth of the country. Most of the young people roaming the streets of our cities immigrated from the rural communities in search of non-existing job opportunities. Faced with the stark reality of city life, the youth resort to undertake menial jobs which attract low incomes

According to Ghana Living Standard Survey (2008) majority of Ghanaian labour force is in self- employment and live on an average income of less than one Ghana cedi, ten pesewas per day, whilst most residents in rural localities live on less that eighty-five pesewas per day. This low income levels translated into shortage of capital and consequently low investment and an unfavorable economic conditions that leads to the collapse of many businesses. Therefore, the unemployment rate in Ghana continues to worsen due to the unfavorable economic climate that prevails presently.

Although unemployment situation in Somalia has not been favorable over the years, the situation has worsened in the last two decades because of structural economic reforms introduced into the

25 economy (ILO, 2012). In fact, unemployment levels started an upward trend at the inception of the second phase of the Economic Recovery Programme (ERP) in 1986 when retrenchment and redeployment policies were introduced by the PNDC government as a result of conditions prescribed by the World Bank and other donors to find solutions to the severe economic challenges experienced by the nation at the time (ILO, 2012).

The rapidly increasing population growth rate at an average of 2.7 percent per annum over the past two decades puts pressure on the labour force and has been identified as the main reason for the high incidence of youth unemployment in the country (Poku-Boansi and Afrane, 2011. In the opinion of Bell (2009), the links between population growth and development have always been seen within the context of population and resources.

According to him, this issue has engaged the attention of traditional economists like Malthus, Coale, Hoover, etc. who were worried about rapid population growth in the face of relatively fixed resources. With the emergence of environmental movements in the early 1970s, the whole question was transformed to the links between population, environment and development, and today it encompasses sustainable development. Therefore, a clear policy priorities should be outlined that will allow for a harmonious population growth and economic growth that could lead to sustainable development for the creation of job opportunities for the youth. Within the developing agenda of Ghana, agriculture is identified as one of the economic pillars. Agriculture is important to the development of any nation, Ghana being no exception. This development must include the youth yet the agricultural sector remains unattractive to young graduates (and the youth at large) even though our economy is structurally agrarian.

The need for the youth to participate in agriculture is necessary and vital not only to create employment but also to facilitate food and nutrition security for the country. Moreover, there is compelling evidence of ageing farmer population in the country which must be addressed to facilitate sustainability in agricultural production. According to Ministry Food and Agriculture (MOFA), the average age of farmers in Ghana is 55 years and life expectancy averages between 55 to 60 years. Also the poor image of persons in agriculture, especially in the rural communities needs to be changed and the youth are the ideal catalyst for such change given their greater

26 propensity and willingness to adapt to new ideas, concept and technology which are all important to changing the way agriculture is practiced and perceived. In effect, increased productivity in agricultural sector depends on the youth who comprise about 20-30 percent of Ghana‟s active population. Their sheer numbers and energy provide tremendous opportunities for increasing agricultural productivity.

There are many industries which produce goods seasonally like those in the agro processing sector (tomatoes, edible oil and fruit). These businesses operate only for a few months and remain closed for the remaining period. So a large number of people who are engaged in these industries become unemployed during the shutdown periods. This seasonal unemployment happens because many developing countries including Ghana depend on rain-fed and subsistence farming to feed their factories and population (Ghana Statistical Service, 2010).

There is ample evidence worldwide suggesting that SMEs have great potentials to promote socio-economic development, poverty reduction, employment creation, and generation of wealth (Becks, 2007). Ayyagari and Becks (2007) who reviewed the contribution made by SMEs to economies in 76 countries, observed a relationship between the contribution that SMEs give to Gross Domestic Product (GDP) and national income. They revealed that 51 percent of GDP was produced by SMEs in high-income countries, 39 percent in medium-income countries and only 16 percent in low income countries. Newberry (2006), showed a positive relationship between a country‟s overall level of income and the number of SMEs per 1000 individuals. He showed that low-income countries are associated with low number of SMEs per 1000 individuals and that the rise in the income level of a country is proportional to the increase in the number of SMEs per 1000 individuals. Despite the positive contribution SMEs bring to economies of the world, Ghana‟s attempt to promote their growth to absorb excess labour has not yielded the desired results. This may be due to several factors including high interest rates, difficulty in accessing finance, weak and unreliable infrastructure (Reuters, 2009).

2.4 Related studies

Katz and Koutroumpis (2012) observed that telecommunication is one of the most promising sectors for creating job opportunities. Between 2011 and 2012, in Senegal and Mali telecommunication sectors created 8,100 direct jobs and almost 152,000 indirect jobs. The authors explained that in the developed world most of the advanced countries have deregulated the telecommunication sector which actually allows more investment in telecommunication sector which in return enhance the advancement of telecommunication technology, growth in private sector development as well as more employment opportunities. Moreover, form another study based on the Nigeria, telecommunication is such a blessing which enable the day laborers to call to find job opportunities rather than making a trip worth of USD 40. Telecommunication operators have tremendous significance in term of generating employment opportunities. The mobile telecommunication industry so far created 10,000 job opportunities where people are directly employed as well as 1,000,000 job opportunities where people are indirectly employed. They opined that GSM business in Nigeria has a great contribution towards the economy in case of GSM card printing, distribution and recharge. These activities save almost 150 million dollars per month as well as provide job opportunities. Klonner and Nolen (2010) explained that the presence of mobile network has the ability to create new markets and services. For an example in South Africa the presence of mobile (GSM) network decrease the unemployment rate significantly.

Telecommunication industry has created 3.6 millions employments directly and indirectly and it is estimated that the growth rate of employment opportunities will be increased by 30 percent per year. By analyzing the data of 6 countries Deloitte (2008) reported that a mobile sector has greater contribution in case of employment. In Pakistan it has so far created 244,000 jobs and in Serbia it has created 36,000 job opportunities. It also reported that limited employment opportunities are created by the mobile phone operators for themselves but they influence other sectors for jobs creations. Moreover, the jobs which are created in the mobile phone operators are highly paid jobs. The sub-Saharan Africa mobile industry created 2.4 million employments. Most of these jobs include distribution of retails services, selling recharge card and handsets. It proved that mobile network operation has a significant influence over the jobs creation. But it is also true that only 300,000 persons were directly employed by the mobile phone operators which

28 are considered as high paying jobs. Moreover 11.8 million jobs can be defined as indirect jobs. The accumulation of the direct and indirect jobs is 25 millions in 2014.

Telecommunication infrastructure has a significant positive association with growth of employment rate in the United States. According to the Jamaican Ministry of Trade and Industry (2004), investment in telecommunication industry can boost the economy than any other sector. In Jamaica, the tourism sector which is considered as one of the largest business sector, contribute only 6 percent to the GDP with 200,000 employments. Compared to the tourism industry, the telecommunication industry also contributes to the economy by 6 percent with only 15,000 employments. The investment in the telecommunication sector has a positive impact on the economy. It reduces the cost of production which enhances revenue. As a result, it eventually increases the employment rate of an economy. Ehsun (2011) observed that in Ghana investment in telecommunication increases the teledensity by expanding network which is one of the major reasons behind millions of new employments. In this way the productivity of Ghana increased but in other way the labor force is also becoming skilled. Aker and Mitbi (2010) claimed that in Kenya because of the investment in the mobile network the employment rate is increased by 130 percent from 2003 to 2007. Klonner and Nolen (2008) assessed that the presence of the mobile network is tremendously successful to create the formal or informal job opportunities in South Africa. The employment is increased by 15 percentages which the larger percentage rely on women employment.

Telecommunication is a technological blessing as the telecommunication industry generates revenue by itself which enables the industry to create job opportunities. Zhara and Mahmud (2014) postulated that it is obvious that a telecommunication sector has an impact on the direct employment. But the larger effect relies on creating the indirect job opportunities with an establishment of call centers, customer cares, retail shops etc. By using data of various municipalities of Germany through a simple OLS regression Czernich (2014) investigated that internet and unemployment has a negative relationship. Employment of private sector is strongly and positively associated with broadband internet. Thru (2005) also reported that if the broadband penetration increased by 1 percent, employment rate also increased by 0.2 or 0.3 percent in per year. Because of the broadband internet penetration, in nonfarm private sector

29 there will be 300,000 new jobs created which also indicates the broadband internet is more positively associated with private industry such as manufacturing, finance, education etc. Moreover, Deloitte (2008) reported that growth of internet subscription is accountable for 190,000 people to be employed in Australia. In another interesting study Mckinsey argued that internet is a powerful force that creates job opportunities. Though it makes some jobs abortive but the net amount of employment opportunities is increased by the internet subscriptions.. Donner and Marsden (2011) explained that with the rapidly increased internet subscriptions the digital literacy is also increased. As a result, the high quality jobs which are listed online can be accessed and applied through internet.

2.5 Research Gap There are several studies conducted on the contributions of the telecommunication industry in employment creation. These studies include Katz and Koutroumpis (2012) observed that telecommunication is one of the most promising sectors for creating job opportunities. Ministry of Trade and Industry (2004), investment in telecommunication industry can boost the economy than any other sector; Telecommunication infrastructure has a significant positive association with growth of employment rate in the United States. Zhara and Mahmud (2014) postulated that it is obvious that a telecommunication sector has an impact on the direct employment. But the larger effect relies on creating the indirect job opportunities with an establishment of call centers, customer cares, retail shops etc. these among other related studies were conducted on the topic however the reviewed studies do not meet the test of time as most of them were done before 2014 presenting a time gap. The studies reviewed also barely points out the studies conducted in Somalia hence presenting a geographical gap, these study therefore intend to fill the geographical and time gaps that the reviewed studies do not undertake.

CHAPTER THREE METHODOLOGY 3.0 Introduction This chapter provides a description of research design used to collect, process and analyze data; sample size, study population, sampling procedures, data collection methods and instruments, data analysis procedure, validity and reliability of the study and ethical considerations.

3.1 Research Design The study employed a mixed design; the design integrates qualitative and quantitative research approaches. Mixed design involve a sequential mixed methods strategy (Creswell & Plano, 2011) was used in which questionnaire were first administered followed by interviews with key informants. The design was used because it provides an elaborate explanation of the state of telecommunication industry and employment creation in Garowe Somalia. The design described the state of affairs of role of the telecommunication industry in employment creation, challenges faced in the employment creation by organizations and the measures that can be advanced to enhance employment creation in Garowe district of Somalia.

3.2 Study population The target population was drawn from the employees of Garowe district in Somalia who were 275 employees and included those involved in or with the knowledge about the state of the telecommunication industry in Garowe. The Population included Golis telecom (105) Somtel telcom (65) employed and political leadership of Garowe district who were 45 and civil servants in the district who were 60 in number. The total population is 275 people courtesy of the Human resource manual for the Garowe district and Telecommunication industry association for October 2017. The population chosen was sufficient to enable the collection of data given that they have a sufficient understanding of the status of employment creation and telecommunication industry contribution.

3.3 Sample Size and Selection The respondents comprised of both sexes but of different marital status and age groups and the study used 163 respondents that were selected basing on a table for determining solvene‟s formula. Stratified disproportionate random sampling was used to select the respondents from each section.

The minimum sample size was computed using Slovene‟s formula and is as follows: n = N 1+Ne2 Where: Where; n = the sample size N = total target population, that is 275. e = the level of significance, that is 0.05 n = 275

1 + 275(0.05)* (0.05) N = 275 1+275* 0.0025 n = 275 1.69 n = 163 Therefore from a population, a sample size of 163 respondents was chosen. Table 3.1: Category, target population, simple size and sampling technique that will be used in the study

NO Category Target population Sample size Sampling technique

1 Staff of Golis 105 62 Simple random Staff Somtel 65 38 Simple random 2 Political Leaders 45 27 Purposive 3 Civil servants 60 36 Purposive Total 275 163 Source: Primary Data (2018)

3.3.2 Response Rate The study targeted a sample population of 156 respondents from the questionnaires that were dispatched from the field. The research achieved a response rate of 95.7 percent from the 156 respondents out of the 163 questionnaires that were administered and distributed to the selected respondents of the study. Therefore with this response rate, there is high confidence that the responses received on the study are reliable. Mugenda (1999) as well as Saunders (2007) suggests that a response rate of 50% is adequate when quantitative data is manually collected.

Table 3.2: Response Rate

Respondents Category Sample Size Actual returned Percentage

All respondents 163 156 95.7

Source: Primary Data, 2018 Table above presents the response rate of the responses to which the research instruments were administered. The findings presented show that out of 163 respondents targeted 156 responded giving a response rate of 97.7%. This implies that the response rate was high.

Table 3.3: Qualitative Sample of respondents

NO Category Sample size Sampling technique

1 Managers of Golis 5 Purposive

Manager Somtel 3 Purposive

3 Administrator district 3 Purposive

Total 11

3.4 Sampling technique The study used both purposive sampling and simple random sampling techniques. A sample of 163 respondents was selected. In selecting the respondents groups, Purposive sampling was used in the selection of political leaders and civil servants. The sampling was used because the respondents can be easily accessed. Simple random sampling was used in the selection of respondents (the employees) of Golis telecommunication) the method is used because it provided

33 equal chance to the respondents to be selected while administrators and managers were selected using convenience sampling method.

3.4 Sources of data In this study two types of data were used by the researcher i.e. secondary and primary data were used. In recognition to this, the researcher collected data that is relevant to the research problem.

3.4.1 Primary data Primary data is that data collected afresh and for the first time, have not been processed. While the secondary data is one which have been already collected by someone else for other purposes and can be used to compile data or raw data. Primary Data used questionnaires and interview as common research tools to collect data. This aimed at collecting primary data from the selected respondents.

3.4.2 Secondary data Secondary data was obtained through notes, correspondences and minutes of meetings from journals published on the study topic. In this study the researcher used documents and other records that are already published to access information on the telecommunication industry role in facilitating employment creation.

3.5 Data Collection Instruments This study comprised of two research techniques for data collected that is data collection was done using two methods, in-depth interviews and questionnaires were administered to some respondents who can read and interpret the question.

3.5.1 Questionnaire This is a technique in which the researcher listed of short questions to the respondents requesting them to fill and collect data later. Closed ended questions designed to suit the objectives were used to effectively attain data for the study. The questionnaires were used to collect data from all the respondents in the study.

3.5.2 Interviews In this technique, the researcher personally goes to the respondents and asks them questions directly related to the topic of study. It involved individual interviews. The interviews were conducted on the selected respondents who included the managers of Golis and Somtel telecommunications and the administrators of Garowe district. The number of respondents interviewed were 19 respondents, these also provided information through questionnaires but was further more interviewed to attain more elaborate information from them.

3.6 Validity and Reliability 3.6.1 Validity of the study The validity was measured by using content validity where all questions answered by the respondents made sure that they truly measured the variables being researched upon (Amin, 2005). To ensure the validity of the questionnaires two experts in research who were senior lecturers in the University that checked for validity of the questionnaire. In this regard, after formulating the questionnaires were submitted to the two experts to ensure their validity through their duties‟ basis. This was based on the estimated alpha coefficient value of 0.7 and more. Thus, after the experts‟ judgment, the compilation of the resonances from raters will be computed to determine the content validity index.

The attainment of the figure of 0.7 indicated that the instrument is valid. According to Amin (2005) validity of instrument is determined by the formula:

Legends: CVI = Content Validity Index RQ = Relevant Questions TQ = Total number of Questions

Table 3.4: Determination of the Validity of the instrument Relevant items Not relevant Total Rater 1 28 2 30 Rater 2 26 4 30 Rater 3 24 6 30 Total 78 12 90

CVI = 78 = 0.866 90 The above demonstrate that the CVI is 0.866 and this is greater than the minimum value of valid instrument which is 0.7 implying that the instrument is valid.

3.6.2 Reliability of the study To ensure that the data is reliable and valid, standard tests were done. The reliability test involved a „‟ test and retest‟‟ exercise. This means the instrument was subjected to the representative sample. Whether each time the question asked and the respondent answered a question similar or consistent, then the instrument was considered reliable. Reliability refers to the degree to which the instrument is consistent with whatever it is measuring Amin, (2005). A research instrument is said to be valid if it actually measures what is supposed to be measured Amin, (2005). Since validity is a measure of how the question asked makes sense to the respondent. A few selected respondents advised whether the question makes sense by ranking it on a scale of very clear, not clear, and very unclear, the mean Alpha was obtained to be at 0.84. Since this figure is above 0.70, it implies that the instrument has internal consistencies which make it sufficiently reliable.

Table 3.5: Reliability Test Results

Variable Alpha No. of Questions Telecommunication industry operations 0.84

Contribution of the telecommunication 0.86

Challenges for employment 0.78

Mean Alpha and Total No. of Questions 0.84 30

3.7 Data Collection

This study researcher used systematic gathering of data for a particular purpose from various sources, including questionnaires, interviews and observations. This involved these stages:

Before data collection: the researcher was developed all gathering data tools and making communications with research stakeholders in advance, on top of that the researcher was organised all the desirable or needed facilities in advance.

During data gathering: the researcher was met with the respondents, gave them an introduction and instructions for responding to the researcher, also the researcher gave to a responds all the needed guidance to the respondents.

After data collection: the researcher was reviewed and checked all the processes of data collection.

3.8 Data Analysis Various statistical methods were used to analyze the data collected from the study. The profiles of the respondents were analyzed by use of frequency and percentage distribution tables. Qualitative data from the interviews were analyzed by use of content and context analysis. Content analysis involves coding and classifying data, also referred to as categorizing and indexing and the aim of context analysis is to make sense of the data collected and to highlight the important messages, features or findings.

Objective one, two, three and four: The mean, standard deviation and rank was used to determine the state of telecommunication industry and employment creation in Garowe district. The challenges faced in employment creation and Measures for enhancing employment creation were measured and determined using the mean and standard deviations. The following mean scale was used to interpret the means scored by the various variables to be analyzed. Table 3.6: Mean Interpretation

Mean Range Response Mode Interpretation 3.26-4.00 Strongly Agree Very High

2.51-3.25 Agree High

1.76-2.50 Disagree Low

1.00-1.75 Strongly Disagree Very Low

3.9 Ethical Considerations In this study, the involvement of the participants was voluntary; participants were free to refuse to answer any question and to draw it from the study any time. Another important consideration, involved getting the informed consent of those going to be met during the research process, which involved interviews and observations bearing in mind that the area bear unfamiliar respondents. Accuracy and honesty during the research process is very important for academic research to proceed. The researcher treated the project with utmost care, in that had no temptation to cheat and generate research results, since it jeopardized the conception of research. There are some other specific points that researcher is considering when conducting the study, these include:  Requesting or asking with permission to the respondents of the study  Asking respondents not to write their names in the questionnaires  Freedom of response  Keeping on confidentiality  Not forcing and pressure with the respondents to take part of the study

CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction This chapter presents the findings from the study with specific emphasis of the study intended to establish the role of the telecommunication industry in employment creation in Garowe Somalia focusing on telecommunication companies and Garowe district. The study solicited response for these research questions. The focus was on three objectives which included assessing the (i) To examine the state of the telecommunication industry operations in Garowe Somalia (ii) To assess the contributions of the telecommunication industry in employment creation in Garowe Somalia and To establish the challenges faced in the employment creation by the telecommunication industry in Somalia. This chapter is organized based on the demographic traits of respondents, following by the analysis as per the research objectives presented objective by objective. The data is presented, analyzed and interpreted as shown in the sub-chapters below.

4.2 Demographic traits of respondents This was based on the gender of respondents, gender, age, education and marital status. This was intended to attain a detailed understanding of the respondent‟s key characteristics influences the result of the study. The general information has an implication on the study variables. The different demographic characteristics are analyzed and presented in table 1 below;

Table 4.1: Demographic Characteristics of the Respondents

Categories Frequency Percentages Sex Male 61 39.1 Female 95 60.9 Total 156 100

Age 20 -29 35 22.4 30 -39 40 25.6 40 -49 50 32.1 50 Years above 31 19.9 Total 156 100

Education Primary & Secondary 13 8.3 Certificate 34 21.8 Diploma 31 19.9 Degree 66 42.3 Post Graduate 12 7.7 Total 156 100

Marital Single 33 21.2 Status Married 87 55.8 Divorced 24 15.4 Widowed 12 7.7 Total 156 100.0

Work Less than 1 year 10 6.4 Experience 1-3 Years 27 17.3 3-5 Years 32 20.5 6 Years above 87 55.8 Total 156 100.0 Source: Field Data, 2018 Table 4.1 present the findings on the demographic characteristics of respondents. The demographics are presented in the forms of sex, age, academic qualifications, marital status and time of working experiences of respondents. The presentations were that on the gender of respondents, majority of the respondents were female who constituted 60.9% of the total respondents while the female were 39.1%. The findings imply that the respondents were both male and female. It further implies that females dominated in provision of data given that the

40 study was about women, otherwise the study can‟t be doubted on gender grounds because it involved respondents from across the gender grid.

The findings showed that the majority of the respondents were in the age category was 40-49 with 32.1% of the respondents, 25.6% were recorded on the age bracket of 30-39, followed by the age bracket of 20-30 with 22.4% and finally 50 and above with 32.1%. The findings imply that the study was taken from mature respondents therefore information attained can be based on for decision making.

On the education characteristics majority of the respondents were for degree that constituted 66 (42.3%) of the respondents, the diploma were 31(19.9%) of the respondents, certificate were 34(21.8%) of the respondents, 13(8.3%) of the respondents were for primary and secondary while the post graduate were 12(7.7%) of the respondents. The findings on this imply that majority of the respondents were educated, it is of no doubt that researcher attained data from the educated people.

Regarding the marital status of the respondents, the study findings revealed that the majority of the respondents 24(15.4%) were married, single respondents were 33(21.2%) while the divorced were 24(15.4%) of the respondents and finally the widowed were 12 (7.7%) of the respondents. The results reveal that the study was conducted from the respondents with more information.

Finally the research findings on the time of work by the respondents showed that majority of the respondents were 87(55.8) % who had worked for the period of more than 6 years in the study area, 32 (20.5%) of the respondents were in the organizations for the period of between 3-5years, those with 1-3 years were 27 (17.3%) of the respondents and less than 1 year were 10 (6.4) % of the respondents. The findings imply that respondents have worked for a long period of time so have information about the required information. The bio-data helped to identify the behavior of some personality due to aspects of origin and behavior.

4.3 State of the telecommunication industry operation performance in Garowe District Somalia. The independent variable in this study was telecommunication industry, on this research objective, the researcher set to investigate the state of the telecommunication industry operations in Garowe, these was guided by 10 research questions. Each of these questions was based on the four point Likert scale where by respondents were asked to rate the microfinance services by indicating the extent to which they agree or disagree with each question and their responses were analyzed using SPSS and summarized using means and rank as indicated in table 4.3 The interpretations for the data for both the independent and dependent variables will be interpreted using the following mean ranges:

Table 4. 2: State of the telecommunication industry operations in Garowe District Somalia.

Descriptive Statistics on state of telecommunication industry Mean Std. D Interpre tation The internet telecommunication is highly established 2.576 1.003 High and effectively operating The internet Usage meets the minimum international 2.455 .959 Low standards of operations required for operations The telecommunication industry is highly regulated by 2.551 .889 High the government in Somalia The telecommunication industry deliver the required 2.724 .766 High authentic content in line with the laws The radio transmissions is effective and reach the needs 2.884 .943 High of the users in delivery of information The computer usage in communication is effective in 2.256 .976 Low their usual operations The search engines and the telecommunication devices 2.326 .937 Low are effectively used in communication The national telecommunication regulator is effective in 2.256 .886 Low the management of the industry There is effective assessment of the telecommunication 2.544 .998 Low resources in terms of the value mix for the employees The telecommunication modes are effectively used to 2.307 .898 Low cater for the people‟s dire interest in the work Average mean 2.487 0.925 Low Source: Field Data, 2018 The study results on the as presented in table 4.3 on the state of the telecommunication industry operations in Garowe Somalia. The study results pertaining the study focus is presented on the

42 respondents, the results present that the mean of 2.458 was attained interpreted as Low, implying that the state the telecommunication operations in Somalia is have a lot of lowness in the operations. The study results on the findings presented reveal that the internet telecommunication is highly established and effectively operating had the mean of 2.576, SD=1.003 interpreted as High meaning that the state of the internet provisions is high in Garowe district.

The study results on the internet Usage meets the minimum international standards of operations required for operations had the mean of 2.455, SD=.959 interpreted as low meaning that the state of the internet usage for minimum standards is low.

The study results further on the telecommunication industry is highly regulated by the government in Somalia, the mean of the respondents were 2.551, SD=.889 interpreted as high meaning that the regulation of the telecommunication is low.

It was further established that concerning the issues of the telecommunication industry deliver the required authentic content in line with the laws had the mean of 2.724, SD=.766 Interpreted as high meaning that the respondents communication delivery in regard to laws was high

Concerning the issue of the radio transmissions is effective and reach the needs of the users in delivery of information had the mean of 2.884, SD=.943, interpreted as high meaning that the radio transmission is fair. Furthermore concerning the issues of the computer usage in communication is effective in their usual operations had the mean of 2.256, SD=.976 interpreted as low meaning that the computerization in telecommunication is low.

The study results on the search engines and the telecommunication devices are effectively used in communication had the mean of 2.326, SD=.937 interpreted as low meaning that the search engines in communication is low. It was further established that the national telecommunication regulator is effective in the management of the industry had the mean of 2.544, SD=.998 interpreted as low meaning that there is limited effectiveness by the national regulator.

The study results on table 4.2 showed that there was effective assessment of the telecommunication resources in terms of the value mix for the employees had the mean of 2.544, SD=.998 interpreted as low meaning that the effectiveness in the resource mix is low. The study results on the telecommunication modes are effectively used to cater for the people‟s dire interest in the work had the mean of the responses with 2.307, SD=.898 interpreted as low in the response rate for the responses. The study results in state of the telecommunication industry operations in Garowe Somalia, these data was collected from the managerial employees of Golis telecom and Garowe district. The results are.

……………………………… Manager Golis Telecom, 16.03.2018

This Act had a very long way in coming, as its drafting had already started in 2005. It was already approved by the Somali Cabinet in 2012. The new law paves the way for the establishment of a National Communications Regulatory Commission in the broadcasting and telecommunications sectors. The bill was passed following consultations between government representatives and communications, academic and civil society stakeholders. According to the Ministry of Information, Posts and Telecommunication, the Act is expected to create an environment conducive to investment and the certainty it provides will encourage further infrastructural development, resulting in more efficient service delivery.

……………………………… Manager Somtel Telecom, 16.03.2018

Somalia is currently in the midst of a telecommunications boom driven by private investors, who have created a mass market with the cheapest calling rates in Africa. Private investors have put an estimated $194 million into Somalia’s telecommunications sector over the last ten year. The telecommunications systems are

44 also improving banking ability for many Somalis. Although Somalia’s population routed much of their investment money through the famous money remittance systems (Hawala), the introduction of competition in mobile communications and internet service provision brought the most dramatic changes in the sector. A new mobile money transfer service was unveiled by Somalia’s biggest mobile service provider with the help of Kenya’s Safaricom, which pioneered the system of transferring money by mobile phone in East Africa.

………………….……………………………… Manager Golis Telecom, 16.03.2018

The telecommunication operation in Somalia is operated by unregulated private operators which developed out of necessity to fill the vacuum left when the former government operated Post and Telecommunication ministry which was completely destroyed. For instance, there are over dozen

There is growing need in Somalia for a policy and regulatory framework providing for the establishment of a regulatory body that is managerially and financially independent from the Somali telecom operators in the telecommunications sector. The ministry oversees the ICT and Telecom sector in Somalia, it exists to facilitate a two-way free flow of timely and reliable information and feedback between the Government, its various departments and the public. Focusing on the co-ordination of policies to monitor and evaluate the implementation of government programs and activities.

………………….…………………… Manager Somtel Telecom, 18.03.2018

Somali ICT Development Association (SICTDA) is a non-governmental, non-profit association that represents a number of companies and organizations that are involved in ICT business and development. SICTDA aims at making Information and Communications Technologies (ICT) and its education accessible to all Somalis and generally promoting ICT application in all aspects of life to accelerate development.

………………….…………………… Administrator Golis Telecom, 20.03.2018

The study results on the state of the telecommunication industry operations in Garowe Somalia. The study results denote that the regulation and the telecommunication industry exist though the operations in Golis are low with limited or low operation capabilities.

4.4 Contributions of the telecommunication industry in employment creation in Garowe District Somalia. The second research objective was to establish the contributions of the telecommunication industry in employment creation in Garowe Somalia. The study results based on the findings of the study are presented based on 4 likert scale guided by 10 quantitative research questions as presented in table 4.3. Table 4.3: Showing contributions of the telecommunication industry in employment creation in Garowe District Somalia

Contribution of telecommucation industry Mean st.dev Interpretation

There are radio stations that have created the High 2.756 .979 employment for the people in Garowe district There are television stations providing employment High 2.852 1.039 creations for the people of Garowe district The telecommunication industry has at least created High 2.679 .922 employment for over 3000 people period 5 years The print telecommunication industry have created High 2.564 .873 employment for the uneducated people There is creation of employment for the educated Low 2.294 .851 and trained people in Garowe district The mobile telecommunications have helped in High employment creation for the people 2.512 .822 There mobile telecommunication has contributed to High innovativeness and business expansion for 2.685 .833 employment There is subsidiary business creation done by the High telecommunication industry in business and 2.666 .939 employment creations The telecommunication industry has supported the High employment creation for SME in the district 2.532 .966 There is support of the business community by the Low telecommunication industry in Golis 2.384 .897 telecommunication AVERAGE 2.592 0.912 High

Source: Field Data, 2018

The results on table 4.3 showed that the contributions of the telecommunication industry in employment creation in Garowe District Somalia. The study results on the contribution reveal that the telecommunication industry on overall had a high contribution to employment creation in Garowe District Somalia with the average response of 2.592, SD=0.912 interpreted as high meaning that the telecommunication industry has some moderate relationship with the employment creation in Garowe district. The study results are guided by the following assertions provided in the study.

The study findings on table 4.3 showed that there are radio stations that have created the employment for the people in Garowe district” had the mean response of 2.756, SD=.979, interpreted as high meaning that there is employment of the people through the radio.

The study results on table 4.3 revealed that there are television stations providing employment creations for the people of Garowe district had the mean of 2.852, SD=1.039 interpreted as high meaning that the television has provided employment to the people.

The telecommunication industry has at least created employment for over 4000 people for a period of 5 years, the mean of 2.679, SD=.922 interpreted as high, meaning that the employment creation for the 5 years through television is existent and high values.

Furthermore concerning the responses on the print telecommunication industry have created employment for the uneducated people, the results with the mean of 2.564, SD=.873 interpreted as high meaning the print telecommunication is having an employment creation values.

There is creation of employment for the educated and trained people in Garowe district. The results on the findings provided the mean of the responses was 2.294, SD=.851 interpreted as low, the results reveal that the employment are trained through telecommunication.

The mobile telecommunications have helped in employment creation for the people, the study results on the same reveal that the mean was 2.512, SD=.822 interpreted as high further implying that the state of the employment creation is fundamental.

Concerning the issue of the mobile telecommunication has contributed to innovativeness and business expansion for employment had the mean of 2.685, SD=.833 interpreted as high meaning that the telecommunication improved innovativeness for employment provisions. The study results reveal that there is subsidiary business creation done by the telecommunication industry in business and employment creations. The study results reveal that the mean was 2.666, SD=.939 interpreted as high meaning that the state of the business creation through telecommunication such as min banking is present and active.

The telecommunication industry has supported the employment creation for SME in the district had the mean of 2.532, SD=.966, The results reveal that the telecommunication industry contribute to the SMEs business generation and creations.

There is support of the business community by the telecommunication industry in Golis telecommunication. The study results provided that the mean of the 2.384, SD=.897 interpreted as the low business support for the community. The study results based on the findings provided in the interview with the managerial employees are provided as below.

Telecommunication industry is accountable for the increasing demand for the input used in the production which eventually increases the total national output. They also argued that in the developing countries investment in the mobile phone sectors has a political as well as economic benefit. This is because cities are centre point for the commercial business, government activities, banks etc. which required telecommunication services to link with other parties and offices. ………………….…………………… Administrator Garowe district, 21.03.2018

Telecommunication industry provides technological foundation for societal communications. Communication plays a central role in the fundamental operations of a society from business to government to families. In fact, communication among people is the essence of what distinguishes an organization, community, or society from a collection of individuals. Communication from Web browsing to cell phone calling to instant messaging has become increasingly integrated into how we work, play, and live.

Telecommunications enables participation and development. Telecommunications plays an increasingly vital role in enabling the participation and development of people in communities and nations disadvantaged by geography, whether in rural areas in the United States or in developing nations in the global society and economy.

………………….…………………… Administrator Golis Telecom, 21.03.2018

Telecommunication industry provides vital infrastructure for national security. From natural disaster recovery, to homeland security, to communication of vital intelligence, to continued military superiority, telecommunications plays a pivotal role. When the issue is countering an adversary, it is essential not only to preserve telecommunications capability, but also to have a superior capability. There are potential risks associated with a reliance on overseas sources for innovation, technologies, applications, and services. ………………….…………………… Administrator Garowe district, 21.03.2018

Interestingly, not all of the research performed affects telecommunications alone. Because telecommunications touches multiple industries, the technology base it provides also often enables the creation of entirely new industries. The success of the iPod and other portable digital music players, for example, rests in part on earlier telecommunications-inspired work on how to compress audio for efficient transmission over limited-bandwidth channels. Telecommunications infrastructure that provides advantages to all industries that use telecommunications. There are also end-user or consumer benefits that accrue to having an outstanding infrastructure, such as enhanced education, entertainment, and personal convenience. Finally, new companies also emerge from these new industries. ………………….……………………………….. Manager Garowe district, 21.03.2018

The study telecommunication industry has contributed to employment creation. The study results reveal that the there is some degree of contribution to employment creation by the telecommunication industry. It is fundamental that the industry provide low employment creation though prevailed.

4.5 Challenges faced in the employment creation by the telecommunication industry in Somalia. The third research objective was to assess challenges faced in the employment creation by the telecommunication industry in Somalia. The results provided shown are presented as shown below. The challenges were measured by 10 quantitatively items /questions in the questionnaire each of which was scaled among 1: 4 one to four where 4=strongly agree, 3 = agree 2 =disagree, 1 = strongly disagree. Respondents were required to rate controlling each of the items by ticking the relevant number in the table. Their responses were analyzed using SPSS‟s summary statistics showing the means and standard deviations, as indicated in table.

Table 4.4: Challenges faced in the employment creation by the telecommunication industry in Somalia.

Challenges faced in the employment creation Mean st.dev Interpretation

The high degree of the informal sector has High 2.567 1.044 negatively affected employment creation The high degree of inflation has hindered High 2.833 .949 employment creation in Garowe district The high level of taxation have hindered business High 2.820 1.044 expansion and employment creation in the country The low level of technological innovations have High 2.774 1.010 hindered business growth in the country The low level of innovations in the country have High 2.647 1.046 hindered employment creation in the country The employment creation is hindered by a low High level of the purchasing power by the people 3.012 .983 The low level of government investments have Low reduced employment creation 2.403 1.001 High population growth has hindered investments High by the people and government sector 2.685 1.039

The low level of private sector financing has High hindered the hindered employment creation in 2.692 1.075 Garowe district The political instability in the country has had an High effect on the employment creation 2.634 .950 AVERAGE 2.706 1.014 High

Source: Field Data, 2018

The study results on Table 4.5 regarding the challenges faced in the employment creation by the telecommunication industry in Somalia. The study findings reveal that there are several challenges faced by the telecommunication industry in Garowe District Somalia in employment creation, the mean 2.706, SD=1.014, interpreted as high meaning that the changes in employment creation are numerous. The high degree of the informal sector has negatively affected employment creation. The study results reveal that the mean of 2.567, SD= 1.044, interpreted as high meaning the informal sector is highly existing.

Concerning the responses on the high degree of inflation has hindered employment creation in Garowe district, the mean response was 2.833, SD=.949 interpreted as high meaning that the inflation affect employment creation in the industry. Furthermore the results on the high level of taxation have hindered business expansion and employment creation in the country the mean was 2.820, SD=1.044, interpreted as high meaning that the state of the operation of the environment is prevalent.

The low level of technological innovations have hindered business growth in the country interpreted as high with the mean of 2.774, SD= 1.010, interpreted as high. Furthermore concerning the low level of innovations in the country have hindered employment creation in the country had the mean of 2.647, SD=1.046 interpreted as High meaning that technology and innovations are low in the industry.

The employment creation is hindered by a low level of the purchasing power by the people had the mean of 3.012, SD=.983, interpreted as high while the employment creation is hindered by a low level of the purchasing power by the people had the mean of 3.012, SD=.983 interpreted as high meaning that the purchasing power being low hinder effectiveness in operations.

The low level of government investments have reduced employment creation had the mean of 2.403, SD=1.001 interpreted as low High while population growth has hindered investments by the people and government sector had the mean of 2.685, SD= 1.039 interpreted as high meaning that population and reduced investments prevail in the organization setting.

Concerning the results on the low level of private sector financing has hindered the hindered employment creation in Garowe district had the mean of 2.692, SD=1.075 interpreted as high while the political instability in the country has had an effect on the employment creation had the mean 2.634, SD=.950 interpreted as high meaning that the political stability in the country limits employment creation. The study results from findings concerning the challenges faced in the telecommunication for creation of employment.

The respondents argued that, the main hindrances to investment in the region were ‘red tape, judiciary system efficiency and corruption’. A significant number of companies owned by influential citizens is able to prosper in this business environment. These influential citizens prefer to have agencies or to be intermediaries or be in partnerships with foreigners rather than develop entrepreneurial businesses, which could create major employment opportunities for fellow nationals.

………………….…………………… Administrator Garowe district, 21.03.2018

Although changes are promised, the region lacks a modern legal system with an independent judiciary and protection for individuals including enforceable employment rights and property rights, which would support less influential business owners

………………….…………………… Administrator Golistelecm, 21.03.2018

Furthermore, the respondents contend that adding the problem of creating enough employment for male citizens, there are now more female citizens seeking work as demonstrated. Those from outside the region often think that there are severe restrictions on the employment creation. Women themselves considered a lack of skills and a lack of local connections to be among the biggest barriers. These are unquestionably important inhibitors of female employment, but they obscure deeper, equally important, socio-cultural phenomena. Low income levels translated into shortage of capital and consequently low investment and an unfavorable economic conditions that leads to the collapse of many businesses.

………………….…………………… Administrator Garowe district, 21.03.2018

The telecommunication industry in operations is hindered in the creation of employment, the study results reveal that the data collected reveal technological, innovative, inflation and managerial plus environmental challenges hinder the business creation for the employment making in the organization.

CHAPTER FIVE DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction This chapter presents the discussion of findings conclusions and recommendations arising from the findings of the study along the study objectives.

5.1 Discussion of the findings The discussion of the findings was done based on the objectives by objective. The discussion has also been done based on the previous research.

5.1.1 State of the telecommunication industry operations performance in Garowe Somalia. The findings show that telecommunication industry operations performance in Garowe District found are low. The findings are in agreement with previous studies such as those of Monty (2010) argued that funded by Somali entrepreneurs and backed by expertise from China, Korea and Europe, these nascent telecommunications firms offer affordable mobile phone and internet services that are not available in many other parts of the continent. Customers can conduct money transfers (such as through the popular Dahabshiil) and other banking activities via mobile phones, as well as easily gain wireless Internet access. These are also in congruence with the findings of Christopher (2008) argued that Somalia's telecommunication sector is governed by the National Communications Law (also called the Telecoms Act) that was signed into law by president AbdullahiFarmajo on 2 October 2017, after passing the Cabinet and the two Houses of Parliament (Senate and House of the People). According to the Ministry of Information, Posts and Telecommunication, the Act is expected to create an environment conducive to investment and the certainty it provides will encourage further infrastructural development, resulting in more efficient service delivery. Even Hormuud, Somtel (2014) contend that as of 2009, dial up, wireless and satellite services were available. Dial up internet services in Somalia were among the fastest growing on the continent, with an annual landline growth rate of over 12.5%. The increase in usage was largely due to innovative policy initiatives adopted by the various Somali telecom operators, including free local in-town calls, a flat rate of $10 per month for unlimited

54 calls, a low charge of $0.005 per minute for Internet connections, and a one-time connection fee of $50.

5.1.2 Contributions of the telecommunication industry in employment creation in Garowe District Somalia The finding shows that the contribution of the telecommunication industry in employment creation in Garowe District is high. The findings are in agreement with previous studies of Waverman and Fuss (2005) found that telecommunication have positively significant impact on the growth of an economy. Based on this study another truth is also revealed that the impact of telecommunication on the economic growth in the developing countries is two times larger than developed country. Even the findings of Shiu and Lam (2007) found that there exists unidirectional causal relationship between telecommunication investment and economic development in those countries which have a lower income level. Deloitte (2008) reported revenue of the telecommunication operators has the significant influence over the GDP. Based on the taxation purpose, Mobile phone industry has contribution of 145 billion RS equivalent to 3.6 billion dollar by providing the taxation revenue towards the government. Again Deloitte also analyzed (based on the six countries. Koutroumpis (2012) all of these scholars researchers argued that internet increase the number of output for the productivity which has a tremendous effects on the growth of economy. Lechman and Marszk (2015) proved that internet tremendously enhance the investment in the economy by promoting the exchange traded.

5.1.3Challenges faced in the employment creation by the telecommunication industry in Somalia. The findings show that the challenges faced in the employment creation by the telecommunication industry in Somalia is high. The results are in agreement with Kapiszewski (2001) argue that the shift in challenge of creating employment for citizens to the private sector with quotas imposed, certain job categories reserved for citizens and fines levied for non- compliance. This is a symptom of the interventionist approach often taken by the governments of the region. The main hindrances to investment in the region were „red tape, judiciary system efficiency and corruption. The study results are in agreement with those of Lopez-Claros (2005) show that labours productivity in the region is very low with the preference being for low cost

55 and low skills rather than high skills, high wages and high productivity. Gardner (2003) believes that the private sector is more interested in rent seeking (in the economic sense of being the difference between market price and the opportunity cost of production) rather than entrepreneurial business opportunities so the country businesses will be unable to face foreign competition even Ayyagari and Becks (2007) who reviewed the contribution made by SMEs to economies in 76 countries, observed a relationship between the contribution that SMEs give to Gross Domestic Product (GDP) and national income. They revealed that 51 percent of GDP was produced by SMEs in high-income countries, 39 percent in medium-income countries and only 16 percent in low income countries.

5.2 Conclusions The study was intended to establish the role of the telecommunication industry in employment creation in Garowe district Somalia the objectives included to examine the state of the telecommunication industry operations performance, assess the contributions of the telecommunication industry in employment creation and finally establish the challenges faced in the employment creation by the telecommunication industry in Somalia.

The study results on the first objective reveal that the state of the telecommunication industry operations in Garowe district is low, the study concludes that effectiveness in operations are low and need enhancement. The state of the telecommunication operations in Somalia is having a lot of lowness in the operations performance. The study results denote that the regulation and the telecommunication industry exist though the operations in Somtel and Golis telecommunication industry are low with limited or low operation capabilities.

The study results on the contributions reveal that the telecommunication industry on overall had a high contribution to employment creation in Garowe District Somalia, based on the results the study concludes that the telecommunication industry need redress to improve operations for generating sufficient employment development.

Finally the study on the third objective concludes that there are a series of challenges in operations that include technological, inflation and managerial challenges in the operations of the

56 telecommunication industry, establishing avenues for managing the state of the unemployment in the telecommunication industry is vital.

5.3 Recommendations The study on the first objective recommend that there is need by the telecommunication industry to improve their operations diversify the means of operations and enhancing the functioning of the industry. There is also need for the policy enhancement at individual organization and national level to facilitate the regulation of the telecommunication industry.

On the second objective:-There is need by the management of the telecommunication industry in enhancing employment creation through the raising of awareness for the generation of the terms of the business environment to facilitate the employment creation. There is need for improving services provision, improving the scope of the services to generate values in the business.

On the third objective, there is need for creating and maintaining worthwhile employment for citizens, how to manage changing demands on the education systems and how to deal with foreign workers are challenges with no clear solutions. There is need for improve technological growth, enhancing effectiveness and business flexibility for the development of the telecommunication industry in order to attain growth and development of the industry.

5.4 New knowledge acquired The study was able to bridge the gaps that were not covered by the previous studies on Telecommunication Industries and employment creation in Garowe Somalia. The study brought up new frontiers of knowledge on how telecommunication industries should create employment and the challenges that were found out in their current operations hindering employment creation in terms of support to the business community mostly the Small and medium Enterprises, the implementing of subsidiary business creation to the community of Garowe Somalia and respondents knowledge on the issues concerning telecommunication industry.

5.5 Limitations of the study . The response rate for the questionnaires was low; the respondents did not return all the questionnaires given to them, even when the response rate was high and effective for data collection. Of the 163 questionnaires given only 156 were returned with a response rate of 0.94.7%, Even Saunders 2007 provided that data analysis from 50% of the data on quantitative data is sufficient for data analysis so the researcher went ahead to analyze the data

. Confidentiality issues delayed the process of data collection and analysis. This hampered early data analysis. The researcher provided an introduction letter to the respondents as a proof that the research was academic

. The degree of validity determination was not effectiveness enough since the standardized questionnaires were not available, Never the less the researcher used content validity to validate the instrument

5.6 Areas for further research Prospective researchers and even students are encouraged to research on the following areas; . Challenges in the management of the telecommunication industry . Telecommunication industry effectiveness and performance of the local government

REFERENCES Ahmed, Majid (2012). Radio and electronic media edge out newspapers in Somalia". Sabahi.Retrieved 21 December 2017.

Azim H and Mahmood R (2008) Telecommunications and regional development: Evidence from the U.S. States," Economic Development Quarterly, vol. 16, no. 3, pp. 211–228.

Bardan T (2007) China‟s telecommunications market: Entering a new competitive age Ding Lu Chee Kong Wong," The China Journal, vol. 53, pp. 173–173.

Calvert, J.R. and Al-Shetaiwi, A.S. (2002) „Exploring the Mismatch between Skills and Jobs for Women in Saudi Arabia in Technical and Vocational Areas: The Views of the Saudi Arabian Private Sector Business Managers‟, International Journal of Training and Development, 6(2): 112–24.

Calvo, Guillermo A. "Quasi-Walrasian Models of Unemployment. American Economic Review, May 1979 (Papers and Proceedings), 69(2), pp. 102-7.

Central Intelligence Agency (2011) Somalia".The World Factbook. Langley, Virginia: Central Intelligence Agency. Retrieved 2011-10-05.

Christopher J. Coyne (2008) After war: the political economy of exporting democracy, (Stanford University Press, 2008), p. 154.

Creswell, J. W., & Plano Clark, V. L. (2011). Designing and conducting mixed methods research (2nd ed.). Thousand Oaks, CA: Sage Publications, Inc

Czernich G. V (2014) On the relationship between telecommunications investment and economic growth in the United States," SSRN Electronic Journal.

Deloitte (2008) The impact of telecommunication revenue on economic growth: Evidence from Ghana," African Journal of Economic and Management Studies, vol. 5, no. 2, pp. 195– 208.

District Development Framework (2015)Garoowe District. September 2011. p. 9.Retrieved 14 August 2015.

Donner.G and Marsden M (2011) ICT, financial inclusion, and growth evidence from African countries," IMF Working Papers, vol. 11, no. 73, p. 1, 2011.

Ehsun G. J (2011) The evolution of markets under entry and standards regulation the case of global mobile telecommunications," International Journal of Industrial Organization, vol. 19, no. 7, pp. 1189–1212.

Ehsun R. H (2011) The effect of the Internet on economic growth: Evidence from cross-country panel data," Economics Letters, vol. 105, no. 1, pp. 39–41, Oct. 2009.

Eid, F. (2005) „Leveraging Liquidity in the Arab World: Investing in Entrepreneurship Arab World Competitiveness Report‟. In Lopez-Claros, A. (ed.) Arab World Competitiveness Report. New York: Palgrave Macmillan, pp. 101–17

Elsenhans, H. (2004) „Overcoming Rent by Using Rent: the Challenge of Development’, Intervention, 1(1): 44–70

ESCWA (2015) Information and Communications Technologies for Employment Creation and Poverty Alleviation in Selected ESCWA Member Countries. New York: United Nations Publications.

ESCWA (Economic and Social Commission for Western Asia) (2014) Survey of Economic and Social Developments in the ESCWA Region 2003–2004. New York: United Nations publications.

Gardner, E. (2003) „Wanted: More Jobs‟, Finance and Development, 40(1): 18–21.

Garreau T R (2008) The transformation of the mobile telecommunications industry in Pakistan: A developing country perspective," Telecommunications Policy, vol. 33, no. 5-6, pp. 309–323, Jun.

Garowe Urban Baseline Report (2015). Food Security and Nutrition Analysis Unit Somalia. May 17, 2012. Retrieved December 27, 2015.

Girgis, M. (2012) „Would Nationals and Asians Replace Arab Workers in the GCC?‟. Paper presented at the 4th Mediterranean Development Forum, Amman, 27 July

Greenstein S. M. and Spiller P. T. (2006) Modern telecommunications infrastructure and economic activity: An empirical investigation," Industrial and Corporate Change, vol. 4, no. 4, pp. 647–665.

Freeman, R. Edward (1984). Strategic Management: A stakeholder approach. Boston:Pitman.

Hormuud, Somtel (2014) Nationlink sign interconnection deal".TeleGeography. 23 July 2014. Retrieved 12 October 2014.

Horst T. B and Miller G (2009) CEE telecommunications investment and economic growth," Information Economics and Policy, vol. 10, no. 2, pp. 173–195.

International Labour Organization (ILO) 2012.An Analytical Study of the Labour Market for Global Employment Trends for the Youth.

Jain R and Sridhar G (2003) Telecommunications infrastructure and economic development: A simultaneous approach," American Economic Review, vol. 91, no. 4, pp. 909–923.

Juma(2007) Can Government Policies Increase National long-Run Growth Rates? Rutgers University Department of Economics Working Papers 2002/13.

Kapiszewski, A. (2001) Nationals and Expatriates. Reading, UK: Ithaca Press

Kateja F. J and Jha M. N (2008) ICT and economic development in Taiwan: Analysis of the evidence," Telecommunications Policy, vol. 23, no. 3-4, pp. 235–243, Apr. 1999.

Keynes, John Maynard (1936). The General Theory of Employment, Interest and Money. London: Macmillan (reprinted 2007).

Klonner R and Nolen S ( 2008) the effect of the Internet on service trade," Economics Letters, vol. 109, no. 2, pp. 102–104, Nov. 2010.

Klonner T and Nolen R (2010) the role of the telephone in economic development," Telecommunications Policy, vol. 4, no. 4, pp. 278– 286, Dec. 1980.

Koutroumpis (2009) the economic impact of broadband on growth: A simultaneous approach," Telecommunications Policy, vol. 33, no. 9, pp. 471–485, Oct.

Koutroumpis T. G (2013) The economic impact of telecommunications diffusion on UK productivity growth," SSRN Electronic Journal.

Monty Munford (2010) Guest Post: Could Tiny Somaliland Become the First Cashless Society?", TechCrunch.com (5 September 2010).

Lam (2006) A structural economic dynamics approach to balance-of-payments constrained growth, Cambridge Journal of Economics, Vol. 31: 755–774.

Lipsy, R.G., 1989. An Introduction to Economics, London, ELDS.

Lopez-Claros, A. (ed.) (2005) Arab World Competitiveness Report. New York: Palgrave Macmillan

Phelps, Edmund S. "Money-Wage Dynamics and Labor-Market Equilibrium."Journal ofPolitical Economy, July-August 1968, 76(4), Part II, 678-711.

Pieter (2013) Productivity, growth and economic performance: essays on Verdoorn's Law, Basingstoke: Palgrave Macmillan.

Phillips, Robert (2003). Stakeholder Theory and Organizational Ethics.p. 66.

Poku – Boansi and Afranie 2011.Magnitude and impact of Youth Unemployment in Ghana West Africa Review (18).

Reuters, 2009, Structural Unemployment crises stalking economy, 6 October, 2009.

Röller R andWaverman (2008) Telecommunications infrastructure and economic development: A simultaneous approach," American Economic Review, vol. 91, no. 4, pp.

Ruhs, M. and Godfrey, M. (2002) „Cheaper Labour on Tap: Wage and Productivity Trends in Kuwait‟, Unpublished manuscript developed from ILO Migrant project and made available to the author.

Sadr R. Y (2012) The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, vol. 22, no. 1, pp. 4–17.

Sey B and Adugu L (2008) Transaction costs, telecommunications, and the microeconomics of macroeconomic growth," Economic Development and Cultural Change, vol. 41, no. 1, pp. 175–196.

Shapiro, Carl and Stiglitz, Joseph E (1984) Equilibrium Unemployment as a WorkerDisciplinary Device." American EconomicReview, June 1984, 74(3), pp. 433-44.

Shiu R and Lam F (2007) The restructuring of African mobile telecommunications provision and the prospects for economic development," info, vol. 13, no. 2, pp. 53–71, Mar. 2011.

Somali President signs telecommunications bill, Garowe Online, 2 October 2017. Accessed on 3 October 2017.

Solow, Robert M. "Another Possible Source of Wage Stickiness." Journal ofMacroeconomics, Winter 1979, 1(1), pp.

UNDP (2002b) Human Development Report. New York: United Nations Publications

UNDP (2008) The Effects of Health on Economic Growth: Theory and Evidence.” NBER Working Paper No. 8587, National Bureau of Economic Research, Cambridge,MA.

Waverman and Fuss (2005) the relationship between mobile and fixed-line communications: A survey," Information Economics andPolicy, vol. 22, no. 1, pp. 4–17.

Winckler, O. (2002) „The Demographic Dilemma of the Arab World: The Employment Aspect‟, Journal of Contemporary History, 37(4): 617–36

World Bank (2013) World Development Report 2003: Sustainable Development in a Dynamic World. Washington, DC: World Bank

World Development Indicators (2017) The World Bank. Retrieved 19 May 2017.

Zhara and Mahmud (2014) Telecommunications and economic development in Singapore," Telecommunications Policy, vol. 9, no. 3, pp. 240–244, Sep. 1985.

APPENDICES

Appendix I: Questionnaire Dear Respondents, AbdiaziizJamaMohamud, a student of Kampala International University is carrying out a research entitled in” The telecommunication industry and employment creation in Garowe Somalia, A case study of Golis telecom”. I kindly request you to contribute me your time in responding these questions by ticking in the box provided in the questions below.

All the information you provide will be treated with confidentiality and the results thereof will be, treated for academic purposes only.

PART A: BIO DATA

1. Gender

Male Female 2. Highest academic education attained

Primary & se Secondary Diploma

Bachelor degree Master degree o others specify………………………….

3. Marital status

Single Married Divorced Widowed 4. For how long have you worked With Your Organization?

Less than 1 year between 1-3 yrs Between 3-5 yrs Over 5 yrs

PART B: Telecommunication industry operations in Garowe Somalia # Telecommunication industry operations in Garowe Somalia Rating

4 3 2 1

1 The internet telecommunication is highly established and effectively operating

2 The internet Usage meets the minimum international standards of operations required for operations 3 The telecommunication industry is highly regulated by the government in Somalia

4 The telecommunication industry deliver the required authentic content in line with the laws

5 The radio transmissions is effective and reach the needs of the users in delivery of information 6 The computer usage in communication is effective in their usual operations

7 The search engines and the telecommunication devices are effectively used in communication

8 The national telecommunication regulator is effective in the management of the industry

9 There is effective assessment of the telecommunication resources in terms of the value mix for the employees

10 The telecommunication modes are effectively used to cater for the people‟s dire interest in the work

PART C: Contributions of the telecommunication industry in employment creation in GaroweSomalia For the following questionnaires, answer using the following key Strongly agree 4. Agree 3. Disagree 2. Strongly disagree 1 Questionnaires on contributions of the telecommunication industry in employment creation Rating 4 3 2 1 1 There are radio stations that have created the employment for the people in Garowe district 2 There are television stations providing employment creations for the people of Garowe district 3 The telecommunication industry has at least created employment for over 3000 people period 5 years 4 The print telecommunication industry have created employment for the uneducated people 5 There is creation of employment for the educated and trained people in Garowe district 6 The mobile telecommunications have helped in employment creation for the people

7 There mobile telecommunication has contributed to innovativeness and business expansion for employment 8 There is subsidiary business creation done by the telecommunication industry in business and employment creations

9 The telecommunication industry has supported the employment creation for SME in the district 10 There is support of the business community by the telecommunication industry in Golis telecommunication

PART D: Challenges faced in the employment creation by the telecommunication industry in Somalia No Challenges faced in the employment creation Rating 4 3 2 1 1 The high degree of the informal sector has negatively affected employment creation 2 The high degree of inflation has hindered employment creation in Garowe district 3 The high level of taxation have hindered business expansion and employment creation in the country 4 The low level of technological innovations have hindered business growth in the country 5 The low level of innovations in the country have hindered employment creation in the country 6 The employment creation is hindered by a low level of the purchasing power by the people 7. The low level of government investments have reduced employment creation 8. High population growth has hindered investments by the people and government sector 9. The low level of private sector financing has hindered the hindered employment creation in Garowe district 10. The political instability in the country has had an effect on the employment creation

Appendix II: Interview Guide

1) What is the state of the telecommunication industry operations in Garowe District Somalia? 2) What are the contributions of the telecommunication industry in employment creation in Garowe District Somalia? 3) What is the state of telecommunication industry employment creation in Garowe District Somalia? 4) What are the challenges faced in the employment creation by the telecommunication industry in Somalia? 5) What mechanisms have been established to stimulate the employment creation drive in Garowe District Somalia?

Appendix III: Map of Garowe