SOMALI BUSINESS REVIEW Special Edition 2013

Somali Business Review Special Edition 1 Somali Business Review Special Edition 2 Contents Chief Editor Ibrahim Mohamud Hamud Editorial 04

Operation Editors Infrastructure Development and State Building Using the Public Private Ahmed Salat Ahmed Partnership 05 Mohamed Yusuf Abdulle Why Somali Women Enter Into Entrepreneurship? 08

Ka Sakeynta Hawlaha Ganacsiga Iyo Production Manager Shirkadaha 11 Abdinor Dahir Siyad Electronics Business Flourishing in : Implications and Trends 17

Growth Challenges Facing Small Editorial Board Businesses in Mogadishu 19 Abdirahman Mohamed Anas , Emerging International Bashir Abdisamad Hareed Business Market 22 Amino Omar Mohamud Private Air Transport and Customer Care in Somalia 24

Technology Transfer: What Everybody Cameraman & Should Know 26

Data Collector Contribution of Turkish Investment to Peace-building Process in Somalia 29 Mohamed Hassan (Lafole)

The Exercise of Third Party Logistics in Somalia 31 Design & Production Graphic Lineups Limited Does Small Business Need Consulting? P.O. Box. 49912-00100 33 -. Tel: 020 2244284 Email: [email protected]

Somali Business Review Special Edition 2013 3 Editorial

t has been more things in business SBR team will take than a year that the has changed including into consideration Ilast edition of SBR both ups and downs. immediately. was issued. After an The new opportunities unexpected absence of to be grabbed or the The team’s philosophy one year, SBR is here arising challenges is that “The believer is again to share with to be eliminated/ a mirror for his brother you very interesting managed and the way believer”. Continues articles enlightening we do business are a improvement is our technology, business lot better than ever. target which we and development. believe is possible with To see/understand a collective ideas and Our respected what it looks like, vision. readers, we apologize your experiences, the time that our insights and invaluable connection in this contributions are beautiful knowledge- extremely important sharing endeavor has for both academicians stopped. and business practitioners. Let’s THE BELIEVER IS A new commitment utilize the venue that A MIRROR FOR starts now and we SBR provides to all HIS BROTHER connect each other of us by sending your BELIEVER again. We are sure articles through an that the upcoming e-mail or hand delivery issues of SBR will be to Research and more exciting and Publications Office at entertaining. the main camps.

Since the last time Finally, comments and we have published constructive criticism the last edition, many are most welcome and

Somali Business Review Special Edition 2013 4 Infrastructure Development and State Building Using the Public Private Partnership

By Abdirahman Mohamed Anas

APPROACH: Somali Post-Conflict Economic Recovery

Introduction including , water, discuss these issues. fter its infrastructure, health and Emerging History and independence day education. Definition of Public A(the year 1960 Private Partnership - 1969), Somalia had However, all services and Historically, Public Private experienced nine years of facilities owned by private Partnerships have been democratic government institutions were not used over three decades regime with free market destroyed and collapsed in the developed countries. system. In this period and mostly not looted Governments introduced foreign companies unlike the public services. this PPP approach for dominated the country’s This might be implied financing purposes such as economy in general that private sector and social and infrastructure and public services in community participation projects (e.g., hospitals, particular. However, in public service was schools, roads, prisons, military regime changed very important for the water and electricity) the country’s systems and sustainability and feeling (Wilson et al., 2010). It politics in the period 1969 belongingness of the is widely considered as – 1990, which resulted government facilities and a key tool of public policy that all main businesses services. This waked up development in the last and sectors to be civil and private businesses three decades (Hurst, et nationalized and governed to fill the gap to some al., 2004). Public entities by the government extent of public services. tend to realize the greater administrators. This Although, currently the role of private involvement paper is not looking at the country elected new in public services (Argiolas perspective of whether government (which is not et al., 2009). this economic system was transitional) it is time effective or vise verse. to rebuild and re-store PPP can be defined as The issue is that whether all services and facilities a long term contract the citizens had the using public private between public and feeling that they belong partnership approach. private institutions where their public services The purpose of this paper the private takes the e.g. , facilities and is to explain the role of risk of providing output other government bases Public Private Partnership services in a agreed and offices. As resulted, (PPP) in infrastructure standards (Wilson et after the collapse of the development and state al., 2010). Stages of government in 1990s the building of Somali post- PPP contracts involve country had experienced conflict economic recovery design, procurement, collapse of all government using literature review. operation of a facility, services and facilities Thus, next sections and/or maintenance. To

Somali Business Review Special Edition 2013 5 be more objective, PPP involvement in development Conditions before has the following special projects and public Implementing PPPs characteristics: long services and facilities Wilson et al. (2010) term service provision – is of prime importance assert that PPP 20 to 30 years; transfer at the perspective of projects should take into of risk to the private sustainability issues account issues such as sector; contracts drawn (Argiolas, et al., 2009). social, environmental up between legal entities Jamali (2007) as cited in and sustainability and public authorities Miller (2000) and Saves purposes which are (Roumboutsos and Chiara, (2000) lists some benefits directed by government 2010). The literature of PPP. The fist one is policies, regulations and presents different that there is a desire to contractual provisions. approaches of PPPs. Aziz improve the performance These three objectives (2007) discussed two of the public sector together build strong widely used kinds of PPPs while avoiding fully fledge foundation for other such as a financed-based privatization. The second main conditions for PPPs approach that aims to use one is that PPPs help such as commitment private financing to satisfy reducing and stabilizing between public and private infrastructure needs, and costs of providing services. parties, transparency a service-based approach Finally PPPs may increase and responsibility, and that to optimize the service quality levels. accountability. The result time and cost efficiency The private sector expects could be enhanced service in service delivery. Both to have investment quality, value for money, these two approaches opportunities through satisfied publics, less could be considered corruption cases, good complementing each other For the case of Somalia, governance etc. to provide service quality currently there is one services for the society. project which could be Wettenhall (2007) argues considered as a form of that any PPP project For the case of Somalia, PPP should have the following currently there is one requirements to be a project which could be PPPs which may result genuine partnership: considered as a form significant profitability active collaboration, of PPP. The project is a and increased business horizontal non-hierarchical mixed financed-based interests (Jamali, 2007; relationships between and service-based PPP Hurst and Reevas, 2004; the parties, consensual approach which is run by an Wilson et al., 2010; decision making, no international organization Roumboutsos and Chiara, single “superior” capable (SKA). This organization 2010). Furthermore, of invoking closure, an invests and manages PPPs’ benefits include organizational structure Mogadishu International that Private sector’s such as a partnership Airport. Opponents of this involvement could result board or forum, an ability project argue that local delivering innovative, to achieve synergies and Diasporas businesses efficient and quality between involved persons were not given that service to the community and organizations, and opportunity. at the perspective of value use of respect and trust for money outcomes. as major forms of social Benefits of PPPs capital. Promoters of PPPs argue that active community A Publication of SIMAD UNIVERSITY A Publication

Somali Business Review Special Edition 2013 6 The Role of PPP in all projects (Community policies and regulations. in Infrastructure participation) (Jones et al., These regulations are Development and State 2003). Overall, the most supposed to govern all Building important contribution PPPs for rebuilding the Principally, it is widely that companies can infrastructure and state agreed that post- make to peace-building building. Future research conflict countries need is to concentrate on the is required to provide active, equitable, and responsible fulfillment of further study in PPP’s profitable private sector their core commercial role in rebuilding the involvement if they are activities, thus increasing infrastructure and state to recover and restore wealth and creating the building. from collapse or conflict economic conditions for and from post-conflict post-conflict recovery. aid-dependency (Bray, 2007). Private sector Conclusion and Governments are development may provide Recommendations required to set increased employment The objective of this paper strong foundations opportunities, less time to is to review the role of for attracting private rebuild the public service, public private partnership sector to involve provides opportunity for approach in re-building playing active role in the government to lessen infrastructure and state building public services budget burdens for public building of Somali post and goods. This may services and goods, conflict economic recovery. sustains livelihoods, Lessons leaned from the decrease country’s serves to reinforce the last two decades (1990s), dependence on foreign economic foundations of the new government aid. This foundation is peace, feeling ownership, elected should introduce supported by setting partnership governance PPP approach to re- fair policies and model and growth in build the public services regulations motivating real per capita GDP. The and goods, where the PPP. As a result, principle of public-private community –locals and multiple stakeholders partnership is easy to Diasporas are involved in will involve in all articulate but harder to all government projects. projects (Community practice. These benefits These involvements may participation) ( Jones are not for granted. result feeling ownership, et al., 2003). Overall, sustainable, peace the most important Governments are required building, employment contribution that to set strong foundations opportunities, increased companies can make for attracting private quality of life, and forms to peace-building sector to involve playing partnership governance is to concentrate active role in building model. on the responsible public services and This paper may have fulfillment of their core goods. This may decrease policy implications in commercial activities, country’s dependence which the government thus increasing wealth on foreign aid. This is required to prepare and creating the foundation is supported strong foundations for economic conditions by setting fair policies and attracting partnerships for post-conflict regulations motivating with the locals and recovery. PPP. As a result, multiple Diasporas. This will come stakeholders will involve in a form of setting faire

Somali Business Review Special Edition 2013 7 Why Somali Women Enter Into Entrepreneurship? By Ali Yasin 1. Introduction are one of the fastest growing of men as well as of women. Somali Women owned entrepreneurial populations businesses are highly in the world. They make Women traditionally have increasing in the economies significant contributions to had relative autonomy of almost all regions in innovation, employment and over household decisions the country. The hidden wealth creation in all economies about child rearing and entrepreneurial potentials of (Brush et al., 2006). Despite other «womanly» duties. women have gradually been the growing importance of Occasionally women would changing with the growing women entrepreneurs, they make their views known to the sensitivity to the role and are understudied, and the men in their lives on important economic status in the society. paucity of research on the issues outside of the domestic Death or unemployment of phenomenon of women’s sphere. Men, on the other husbands and fathers, the entrepreneurship is well hand, were expected to act need to contribute to the documented (de Bruin et al., as the public economic and family income, to take up an 2006, 2007; Baker et al., political face of the household, active role in the society, 1997). The major objective of serving as breadwinner need for independence and the article is to analyze the and representative to clan adaptability in business are factors that motivate Somali decision-making structures the main reasons for women women entrepreneurs to (Timmons, 2004). to emerge into business enter in to entrepreneurship. ventures. 3. Women: Economic 2. Gender Roles In Somalia Contribution in Gender perspective within «Talo naaged reer kuma tanaado» Prewar Somalia Entrepreneurship study is (No family will prosper if it Women’s economic standing not a new topic and plentiful relies on women’s decisions) and responsibilities in prewar academic publications about as these quotations imply, Somalia varied by location, feminism research have been Women’s experiences in pre- Women who lived in urban published in recent years. war Somalia were varied. Not settings might likely have This matches the trend that surprisingly, women in urban had husbands who worked in the society has drawn more areas led lives quite different industry or government and attention in gender equality, from those who lived in rural acted as sole breadwinners for which to larger extent areas, and women in pastoral the family. These women would helps women eliminate their settings had very different be tasked with the activities subordinate social status to responsibilities from women in of running the household and men. Undoubtedly, it’s the agricultural households. Nur bearing and raising children. rising consciousness of gender (2002) found that stereotypes In pastoral families, women equality that lets people put and perceptions of what are shared in some duties outside more attention on female role considered women’s naturally the household, including the in entrepreneurship. endowed qualities-particularly care and feeding of animals, lower intelligence than men— selling of milk, and in some A women entrepreneur is contributed to the exclusion cases herding of . one who owns and runs of women from social Women in agricultural commercial enterprise economic, and political power communities also engaged independently, often at structures. In this region, He in activities outside the a personal financial risk. found these perceptions to be traditional household duties, Women-owned businesses firmly ingrained in the minds assisting in the cultivation of

Somali Business Review Special Edition 2013 8 fields and harvesting of crops. children, while the man Women’s work, in the sense 4. THE IMPACT OF CIVIL protects and provides for the of maintaining the household WAR ON SOMALI WOMEN family and acts as its decision and bearing and rearing The prolonged civil war maker and representative children, has historically and insecurity following in the community. However, been recognized as essential the collapse of the Somali the lengthy civil conflict has to Somali society. Some state in 1991 have caused eroded these traditional women have been able as immense human suffering roles, forcing people to seek well to secure and maintain and material losses across the protection of their clans. control over independent the south-central regions, Men and boys were forced economic resources through leaving physical and emotional to fight or leave their home inheritance. By tradition, scars on all aspects of Somali areas to seek work to provide any livestock, jewelry, or society. In addition to death income for their families; other property inherited by and destruction, the violent some, faced with an inability a female from her father or conflict has resulted in to protect or support their older relatives can never be widespread displacement of families, even abandon them. acquired by a husband upon people both within and beyond The serious stresses placed marriage. This tradition has the country’s borders. Family upon the family system afforded Somali women some relationships have been during this period led to an access to property outside of disrupted, traditional social increased number of divorces, the clan structure. Although values eroded, and roles and women-headed households, some women effectively responsibilities within the and abandoned children (a maintained property, women’s family have undergone major phenomenon that was rare contributions to the economic fundamental changes (CRD/ in Somali society prior to the livelihood of the family and clan WSP, 2004), collapse of the state). outside of household duties The well-documented were largely discounted In Somali society, women emergence of women as the and ignored, and they did are traditionally seen as the primary economic providers not give women any power backbone of the family, the in the post-war period is not within kinship decision-making primary caregiver looking limited to women-headed structures. after the household and households. Many married

Somali Business Review Special Edition 2013 9 women have also become level, «there has been an , restaurants, fruit the main source of income increased level of respect and vegetables, household for their households due to for the important role utensils and groceries. They high unemployment among women are playing in meeting were asked what motivated men. Generally, men are the economic burdens of them to start and run their unwilling or unable to engage supporting the family. This business. in low income opportunities, is an area which women will such as petty trade in local need to capitalize on in the From this study, it can be markets. Male unemployment future if they are to increase concluded that occupational is also compounded by the their voice in decision making choice of women is influenced widespread chewing of khat, a (Timmons, 2004). by their family needs, a higher mildly intoxicating plant. need for economic contribution Instead, women’s increased to family and achievement, A variety of studies have involvement in trade appears unemployed husband, death found that, across Somalia, to be a reflection of economic of the traditional family bread women now run 80% of petty necessity. In most cases, winners, nuclear families and trade (micro business) and women lack investment polygamy. small businesses, as well as capital, own few assets, and running their own households. earn a subsistence income to It is sometimes argued support their families through A variety of that this dramatic socio- work in harsh conditions and economic shift demonstrates an insecure environment. studies have an enhanced position for In south-central Somalia, women – although there is there are relatively few found that, little evidence that this has women owners of wholesale translated into changes either businesses or major across Somalia, in their economic status or corporations, and very few their decision-making powers major Somali companies have women now run outside the family (CRD, a woman on their boards. 2007). 80% of petty 5. Conclusion In 1997 ACORD, a Women are becoming trade (micro nongovernmental organization entrepreneurs due to several (NGO) conducted a study in factors which may be grouped business) that found under “pull factors” and “push that women in the region were factors”. Push factors refer and small working 30 percent more to factors that push women than men. By 2001 ACORD to commence the business businesses, as found that an estimated 70 enterprises with liking to to 80 percent of the region’s start a business, driven by well as running households were dependent financial need due to family on women’s earnings for the circumstances. their own family’s livelihood. Somali women faced with either This study is a survey based households the loss of a husband or a study which was conducted husband unable to find work at Bakara market on found means of earning a December 2011. Five Somali living through petty trade women entrepreneurs were and cooperatives established selected from the difference with other women. According businesses running at to Powers-Stevens, at the the market, among them household and sub-clan there were women selling

Somali Business Review Special Edition 2013 10 Ka Sakeynta Hawlaha Ganacsiga Iyo Shirkadaha

By Bashir Abidsamad Hared Ganacsiga waxaa lagu (cooporatives) iyo shirkad lacagta ganacsiga ku jirta qeexaa hanti kasta oo saamiley (corporation). ee shaqeynaysa (working guurto ah, oo ku jirta shaqo 2. Warshadaha farsameeya capital). Qaybaha kala duwan ganacsi si looga macaasho. alaabta cayriin (raw ee hantida guurtada ah Waxaana ka mid ah ganacsi material), kana sameeya waxaa ka mid ah: 1) Lacagta kasta oo lacag caddaan ah badeeco diyaarsan caddaanka ah, 2) Lacagta lagu beddesho ama badeeco (finished goods), bankiga taalla, 3) Jeegaga la isku beddesho (nidaamka dabadeedna ka iibiya ama kaararka sarifmi kara, is-weydaarsiga). Haddaba macaamiisha si looga 4) Badeecada bakhaarka dulucda qeexitaankan macaasho. taalla, iyo 5) Amaahda waxaan ka dheehanaynaa 3. Dilaalnimada ama ama deynta ka maqan in hantida ganacsiga ku wakiilnimada (brokerage); ganacsadaha (sakeeyaha). jirta tahay hanti guurto ah, waana kuwa ka Sidoo kale deynka laga waayo hantida ma guurtada ganacsada soo dejinta jaro hantida guurtada ah ah lagama sakeeyo laf- ama dhoofinta badeeco waxaa ka mid ah: 1) deyn ahaanteeda ee waxaa laga diyaarsan, ama dadka iyo amaah bixin mudan (waa sakeeyaa dakhliga laga fududeeya hawlaha deynka ama amaahda laga helo. Sidoo kale waa inay ganacsiga. sugayo ganacsadaha inuu hantidu ku jirtaa ganacsi. 4. Adeegga fududeynta ku bixiyo wax ka yar sanad), Si ay hantidu u yeelato lacagaha, sida hawlaha iyo 2) Kharash bixin mudan astaanta “hanti kobceysa” xawaaladaha iyo (waa kharash ay ahayd in waa in lagu shaqeeyaa, sariflayaashu ka la bixiyo, laakiin aan wali la kadibna macaash laga ganacsadaan. bixinin). helaa. Hawlaha ganacsiga Hal-beegga qiimeynta Tusaale: dabayaaqada waxaa ka mid noqon kara sakada sannadku markuu ahaa samaynta badeeco ama Markasta oo la xisaabinayo 30/12/1424 Hijriyada, ayay ka ganacsiga badeeco sakada waxaa lagama shirkad ganacsi oo gaar loo diyaarsan, warshadeynta, maarmaan ah in la leeyahay soo bandhigtay dhoofinta iyo soo-dejinta adeegsado hal-beeg si warbixinta hoos ku xusan badeecadaha kala duwan, joogto ah wax loogu cabbiro. oo lagu faahfaahiyay iwm. Hantida sakadu ku waajibtay hantida shirkaddu leedahay Noocyada hawlaha waa hantida guurtada ah iyo qaanta lagu leeyahay. ganacsiga: Ganacsigu oo laga jaray qaanta ama Maamulka shirkaddu waxay wuxuu yeelan karaa qaabab deynka muddada gaaban u xilsaareen khabiir ku xeel fara badan oo kala duwan, lagu bixin doono. Marka dheer sakada inuu qiimeeyo waxaase ugu muhiimsan: deynka laga jaro hantida hantida iyo qaanta, kadibna 1. Hawlaha iibinta badeeco guurtada wixii soo hara ama uu xisaabiyo sakada lagu ama adeeg, si dib looga haraaga ayaa lagu qiimeyn leeyahay shirkadda. macaasho, waxaana inay dhan tahay nisaabkii inta badan sameeya laga sakeyn lahaa (qiimaha A. Hantida shirkaddu shirkadaha, nooc 85 garaam oo dahab leedahay: kastaba ha lahaadeene ah). Farqiga u dhexeeya Hanti maguurto ah sida; ganacsade hantida guurtada ah iyo Dhul banaan (proprietorship), shirkad deynka qofka lagu leeyahay $300,000 wadaag (partnership), waxaa lagu magacaabaa Dhismooyin shirkad iskaashato Raasumaalka Kobcaaya ama $392,000 Somali Business Review Special Edition 2013 11 Wadarta hantida maguurtada ah $692,000 Hanti guurto ah Lacag caddaan ah $ 30,000 Deyn maqan $ 30,000 Badeeco bakhaarka taalla $ 60,000 Hormaris kiro guri $ 8,000 Wadarta hantida guurtada ah $128,000 Wadarta Hantida shirkadda oo dhan $820,000 B. Qaanta shirkadda lagu leeyahay: Amaah bixin mudan (muddo dheer) $225,000 Deyn bixin mudan (muddo gaaban) $ 30,000 Kharash bixin mudan1 $ 2,500 Wadarta qaanta shirkadda lagu leeyahay ($257,500)

C. Raasumaalka shirkadda (A-B) $562,000 Dhanka kale, khabiirka sakadu markuu qiimeeyay hantida shirkadda u taalla waxaa u caddaatay in badeecada ku xusan warbixinta ay suuqa ka joogto $92,000. Qiimahan warbixinta lagu sheegay waa lafihii lagu soo gaday badeecada markii hore. Si looga sakeeyo shirkadda, khabiirku wuxuu u xisaabiyay hantida shirkadda sida soo socota:

Xalka tusaalaha ka sakeynta shirkadda: A. Hantida guurtada ah: Lacag caddaan ah $ 30,000 Deyn maqan $ 30,000 Badeeco $ 60,000 Hormaris kiro $ 8,000 Wadarta hantida guurtada ah $128,000 Laga jaray:

B. Qaanta muddada gaaban: Deyn bixin mudan $ 30,000 Kharash bixin mudan $ 2,500 Wadarta qaanta muddada gaaban ($32,500)

C. Raasumaalka kobcaaya (A-B) $95,500 Lagu daray: Farqiga qiimaha suuqa badeecada $32,000 Wadarta hantida laga sakeynayo $127,500 Sakada shirkadda laga rabo waa ($127,500 X 2.5%) ($3,175) Faalleynta xalka 1. Deynta maqan waa laga sakeynayaa, sababtoo ah waa hanti shirkaddu leedahay oo la rajaynayo in la soo celiyo mustaqbalka, waa haddaan shaki laga qabin helitaanka deyntaas.

2. Kirada guriga ee la hormariyay waa laga sakeynayaa, sababtoo ah waa hanti shirkaddu tirsanayso oo ay intifaacsan doonto mustaqbalka, waxayna ka mid-tahay hantida shirkadda ilaa laga dheefsado dhammaanteed. 3. Badeecada bakhaarka taalla waxay ku diiwaan gashantahay lafaha lagu soo gaday oo ah $60,000, waxayse suuqa ka joogtaa $92,000, saas darteed ayaa inagoo

1 Kharash bixin mudan waa kharashaadka ay ahayd in la bixiyo mudadii la soo dhaafay, laakiin aan wali laa bixinin.

Somali Business Review Special Edition 2013 12 dhawrayna xeerka dunida laga adeegsado. $50,000. Deynta ka fiqhiga ah ee sheegaya Inta badan natiijada maqan Hodan waa in marka hantida ganacsiga lama ogaan $5,000, oo $2,000 laga sakeynayo lagu karo ilaa uu sannadku oo deyntaas ka mid ah qiimeeyo sicirka ka dhammaado, waana shaki ku jiro in la heli ay maalintaas marka dawladdu doono, waayo waxaa badeecadu suuqa go’aansato inay musalafay qaameysanihii ka joogto, ayaan ku canshuurto ganacsiga denyta lagu lahaa. qiimayneynaa qiimaha ama milkiiluhu Haddaba markii khabiir suuqa ee ah $92,000 go’aansado inuu sakada ku xeeldheer sakada uu si loo xisaabiyo iska bixiyo. Markaas hubiyay macluumaadka sakada hantida. ayaa loo soo diraa ganacsiga Hodan, 4. Deynta lagu leeyahay (meelaha dawladu ka waxaa la ogaaday in shirkadda waa in jirto) xisaabiye soo tira- macaashkeeda sannadku la bixiyaa inta aan kooba hantida wareega dhan yahay $5,250. sakada la bixinin. ganacsiga ku jirtay Haddaba, inagoo Sida tusaalahan sannadka gudihiisa ee tixraaceyna xogtaas kor ku cadna qaanta ganacsaduhu haysto. ku xusan aan xisaabinno mudada gaaban oo Ganacsatada noocaan sakada sharci ahaan ah $32,500 ayaa ah marka ay bixinayaan lagu leeyahay Hodan. laga jaray wadarta sakada inta badan Inta badan ma hantida. uma bixiyaan si sax ah, fududa in ganacsiga 5. Sida xalka ku cad sababtoo ah marka (ganacsatada) yaryarka lagama sakeynin horeba malaha diiwaan ah ay sameystaan dhulka, iyo habaysan (recording diiwaan xisaabeed oo dhismooyinka midna, system) ama qoraal habeysan oo la tixraaco. waayo waa hanti xisaabeed oo la hubo oo Saas awgeed ayay dalal maguurto ah. Sidoo fududeyn kara tirakoobka badani waxay jideeyeen kale waxaan laga hantida ganacsadaha. nidaam u gaar ah sakeynaynin amaahda Sidoo kale, iyana waxaa ganacsiga yaryarka ah oo lagu magacaabo yar dadka takhasuska lagu qiimeeyo sakada iyo Amaah bixin mudan u leh qiimaynta hantida canshuurta ganacsiga sababtoo ah waa iyo ka sakeynteeda oo noocaan ah. Tusaale qaan lagu bixin doono khibrad ka geysan kara ahaan dalka Sucuudigu mudo dheer. xisaabin huban. Haddaba wuxuu leeyahay nidaamka si ay ganacsatada lagu magacaabo “taqdiir qiimeynta sakada doonaya inay iska gudaan juzaafi” oo ah in la ganacsiga aan lahayn xuquuqda Eebbe swt – maleeyo ama la qiyaaso diiwaan habaysan waa qofkii lagu yeeshee- qadarka macaashka Ganacsiga iyo waxay adeegsan karaan, ah ee ganacsigani soo ganacsatada yaryarka oo u fududayn doona xareeyay sannadka ah (Sida: dukaanada, bixinta sakada habka soo dhammaaday. Haddiise carwooyinka, socda. wax uun qoraal ah laga helo ganacsadaha way ka suppermaarketyada, Hodan waxay Tusaale: fududahay in la qiimeeyo farmashiyada, ka ganacsataa dharka, ama la qiyaaso qadarka makhaayadaha iyo isla markaasna ma laha sakada ah ee lagu bacadlayaasha) inta diiwaan habeysan oo la leeyahay ganacsadaha. badan malaha diiwaan- raaco, hase yeeshee, Haddaba aan xisaabinno xisaabeed oo u habaysan waxay soo gudbisay sakada sharci ahaan qaababka waafaqsan in bilowga sannadka lagu leeyahay ganacsato nidaamyada maaliga ah ee raasumaalkeedu ahaa Hodan.

Somali Business Review Special Edition 2013 13 Xalka tusaalaha Raasumaalka bilowga sannadka $50,000 Lagu daray: macaaashka sannadka $5,250 Lagu daray: Deynta ka maqan ee la hubo ($5,000-$2,000) $3,000 Wadarta hantida laga sakeynayo $58,250 Saan qiyaaseyno hantidani way dhan tahay nisaabkii loo baahnaa, sakada laga doonayana waa $1,456.25 ($58,250 × 0.025), waase in laga jaraa kharashka hadduu jiro.

Faalleynta xalka 1. Sida ku cad xalka tusaalaha raasumaalka bilowga sannadka ayaa sal looga dhigay xisaabinta sakada. Kadibna waxaa lagu darey deynka maqan ee la hubo ($3,000 ayaa la hubaa) iyo macaashka sannadka ($5,250). 2. Deynta aan la hubin ($2,000, deyn ba’day) lagama sakeynayo, waayo waxay ku dhowdahay in loo aqoonsado khasaare. Khasaarena lagama sakeeyo. Haddiise qofkii lagu lahaa deynka uu mustaqbalka awoodo inuu iska bixiyo, markii laga helo ayaa laga bixin doonaa sakada hal sano, xattaa hadduu denykaasu maqnaa sanooyin badan. 3. Habka aan ku xisaabinay sakada waa kan ay adeegsato wakaaladda Sucuudigu ee maamusha sakada iyo canshuuraha.

Tusaale: Ganacsade Maxamuud wuxuu ka ganacsadaa noocyo kala duwan oo badeeco ah sida; dhar, cunto iyo cabitaan, mana laha diiwaan xisaabeed oo habeysan, hase ahaatee markii la baaray ganacsigiisa wuxuu soo gudbiyay xogta soo socota dabayaaqada sannadka 1425 Hijriyada.

A. Hantida Maxamuud Makiinado $12,000 Iskafaallo iyo miisas $ 7,000 Badeecada bakhaarka taalla $25,000 Deyn maqan $30,000 Lacag caddaan ah - Khasnada $13,000 Lacag caddaan ah - Bankiga $12,000 Wadarta hantida $99,000

B. Qaanta lagu leeyahay Maxamuud Deyn bixin mudan $ 8,500 Amaah bixin mudan $ 5,000 Ganaax dowladda hoose $11,200 Maal-gashi dad kale (lagu darsaday) $10,000 Wadarta qaanta $34,700

Xog dheeraad ah: 1. Badeecada bakhaarka taalla qiimaheedu wuxuu suuqa ka joogaa $38,000, waxaana ka mid ah badeeco qiimaheedu dhan yahay $7,000 oo la gaday, hase yeeshee qofkii iibsaday uusan wali bakhaarka kala bixin. 2. Waxaa jirta badeeco ganacsaduhu leeyahay oo jidka ku soo jirta, oon wali soo gaarin xarumaha ganacsadaha (waxay taallaa ), qiimaheeduna (sida ay ka joogto Dubai) waa $12,000, hase ahaatee Muqdishu waxay ka joogtaa $13,000. Sidoo kale ganacsaduhu wuxuu wakiil ahaan badeeco ugu hayaa ganacsade kale oo ajnabi ah, badeecadaas qiimaheedu waa $2,000.

Somali Business Review Special Edition 2013 14 3. Waxaa khasaarey qof uu ganacsaduhu deyn ku lahaa. Deynkaas oo dhan $1,500, maxkamaduna waxay faafisay in qofkaas musalafay uusan iska bixin karin deynta Maxamuud ku leeyahay. 4. Waxaa caddaatay in lacag dhan $2,000 oo kiro guri ah, lagu leeyahay ganacsade Maxamuud. 5. Waxaa jirta lacag dhan $1,800 oo hormaris ahaan ganacsade Maxamuud u bixiyay, waana kiro xafiis (lix bilood oo hormaris ah). 6. Mushaar dhan $3,200 oo khuseeya sannadka dhammaaday ayaan wali la siinin shaqaalihii mutaystay. Sidoo kale, waxaa jira ganaax ($11,200) ay dowlada hoose dulsaartay Maxamuud sababtoo ah wuxuu la daahay canshuurtii sanadkii hore.

Dhanka kale, biilka sannadka ee qoyska Maxamuud waa $18,000 sannadkii oo dhan. Haddaba, inagoo tixraaceyna xogtan kor ku xusan aan xisaabinno sakada ku waajibtay sharci ahaan ganacsadahan. Xalka tusaalaha: Intaynaan xisaabinin sakada ganacsadaha aan kala saarno hantidiisa iyo hantida dadka kale, isla markaasna aan si hubaal ah u soo saarno hantida laga sakeynayo.

1. Badeecada Maxamuud leeyahay Badeecada bakhaarka taalla $38,000 Lagu daray: Badeecada jidka kusoo jirta (Dubai) $12,000 Wadarta badeecadda $50,000 Laga jaray: Badeecada la gaday een la rarin ($ 7,000) Badeecada ammaanada ah ($ 2,000) Wadarta badeecadda uusan Maxamuud lahayn ($ 9,000) Badeecada ganacsade Maxamuud leeyahay $41,000

2. Xisaabinta deymaha Maxamuud ka maqan Deynta maqan $30,000 Laga jaray: Deynta ba’day (la sugeynin) ($1,500) Deynta la hubo ($28,500)

3. Xisaabinta qaanta bixinta mudan2 Qaan bixin mudan oo hore $8,500 Lagu daray: Kiro guri oo bixin mudan $2,000 Mushaar bixin mudan $3,200 Amaah bixin mudan $5,000 Ganaax dowladda hoose $11,200 Wadarta qaanta bixinta mudan $29,900

Haddaba maadaama aan soo kala saarnay hantida ganacsadaha iyo hantida dadka kale leeyihiin aan soo saarno sakada laga doonayo ganacsade Maxamuud: A. Hantida guurtada ah: Badeeco $41,000 Deyn maqan $28,500 Lacag caddaan ah – Khasnada $13,000 Lacag caddaan ah – Bankiga $12,000 Maal-gashi shirkado kale $10,000 Hormaris kiro $ 1,800 Wadarta hantida guurtada ah $105,000 Laga jaray:

2 Waa hanti kasta oo laga rabo ganacsadaha inuu bixiyo sida amaahda lagu leeyahay ganacsadaha.

Somali Business Review Special Edition 2013 15 B. Qaanta lagu leeyahay Qaan bixin mudan oo hore $ 8,500 Kiro guri oo bixin mudan $ 2,000 Mushaar bixin mudan $ 3,200 Amaah bixin mudan $ 5,000 Ganaax dowladda hoose $ 11,200 Wadarta Qaanta bixinta mudan ($29,900)

C. Raasumaalka kobcaaya (A-B) $75,100 Laga jaray: Biilka qoyska ($18,000) Hantida sakadu ku waajibtay $57,100

Maadaama hantida Maxamuud ay ka badan tahay nisaabkii loo baahnaa waxaa laga doonayaa sako dhan $1,427.50 ($57,100 x 2.5%).

Faalleynta xalka tusaalaha: 1. Kirada hormariska ah waa in laga sakeeyaa, waayo waa hanti ganacsaduhu leeyahay oo uu intifaacsan doono mustaqbalka soo socda, ilaa ay ka dhammaatana waa lagu dari hantida laga sakeynayo. Waxaanse laga sakeynaynin haddii lacag hormaris ah lagu bixiyo xayaysiin, sida haddii shirkadi bixiso lacag dhan $10,000 si loogu xayaysiiyo hawlaha shirkadda shanta sano ee soo socota, laga sakeyni maayo, sababtoo ah waa kharash la xiriira socodsiinta ganacsiga oon kobcaynin, waana in loo aqoonsado hanti maguurto ah, waayo waxaa la xayaysiinayaa magaca shirkadda. Magaca iyo sumcadda shirkadduna waxay ka mid yihiin hantida maguurtada ah. 2. Kirada iyo mushaarka lagu leeyahay ganacsadaha waxaa loo tix galinayaa qaan ama deyn oo kale, saas awgeed waa laga jari hantida inteeda kale oo laga sakeyn maayo. 3. Sida ka muuqata xalka tusaalaha waxaa la isugeeyay wadar wuxuu lahaa milkiiluhu, meel kasta oo ay yaalaan sida badeecada jidka ku soo jirta oo lagu daray hantida kale, waxaana lagu qiimeeyay, qiimaha meesha ay taallo oo ah Dubai. Sidoo kale hantida uu wakiilnimada dad kale ugu hayo, laga sakeyn maayo mana aha laba hantiyood oo la isku darsaday ee waa ammaano, waxaana sakadeedu saarantahay amaanada qofka iska leh. 4. Badeecada bakhaarka taalla waxaa lagu qiimeeyay qiimaha suuqa ay ka joogto maalinta saka-bixinta, wayna isku waafaqsanyihiin culumada Islaamku in aan la qaadanin lafaha badeecada, ee waa in suuqa laga soo qiimeeyo badeecada qiimihii lagu iibin lahaa, kadibna qiimahaas suuqa looga sakeeyo. 5. Deynta ba’day ee dhan $ 1,500, laga sakeyni maayo, sababtoo ah waa hanti aan gacan lagu haynin oo khasaartay, waxaase laga sakeyni doonaa haddii qofkii lagu lahaa deynta uu awood u yeesho mustaqbalka inuu iska bixiyo deynta soona celiyo. 6. Ganaaxa dolwadda hoose wuxuu lamid yahay qaan lagu leeyahay ganacsadaha waana laga jari hantida. 7. Biilka qoyska iyo kharashaadka kale ee daruuriga u ah reerka ganacsadaha waa in laga jaraa hantida inteeda kale, si aan looga sakeynin.

Somali Business Review Special Edition 16 Electronics Business Flourishing in Mogadishu: Implications and Trends

By Ismail Mohamed Ali Introduction more than that”, says my master’s thesis. I The technology sector Yusuf, a salesman of remember a time the size witnessed a little progress Sanguni General Trading of computers was as big as in Somalia in the last two L.L.C.The major reason a cupboard. Printer was like decades. However, the basic comes from the increasing another cupboard. We are factors of technological demand from other really introduced something development are missing. businesses. Universities, new and there is no doubt Absence of constructive schools, hospitals, etc that more will come in research is one of them. employ a great number the future” said another Also, innovation is not of digital electronics. A senior lecturer. It can encouraged well. In addition, similar demand comes be drawn from here that inadequate investments from societies. Barre, technological developments from both public and private another salesman at Beder brought efficiency and institutions were allotted Electronics assumes that convenience to users. for this sector. Although, everyone is thinking to buy the above-mentioned a laptop. He predicts that What does this imply? factors do exist, there laptops will be ubiquitous as The people are increasingly is undeniable progress in hand phones in a 10 years’ adopting the digital the business of consumer time. Young generations technologies. It seems that electronics. use electronics more than the degree of understanding ever before. It is not a the importance of these Despite the chaos, many surprise to see someone technologies in the society businesses of digital using several electronic is high. It is possible to electronics were launched. equipments simultaneously say that buying these The market of electronics such as hand-phone, technologies became showed noticeable portable storage devices something affordable for improvement in the last few (Hard Disk, Flash Disk, and larger number of people years. Before 2006, buying MP3 Player etc), laptop, in Mogadishu. It has been desktop commuters was and digital camera. discovered in one class not easy. Now, computers alone that 47 out of 60 are available in every office. How do the people perceive local university students Laptops are increasingly these technologies? have laptops. The rest used by individuals. The I asked one of my colleagues mentioned that they use of hand phones is in one of local universities, have desktop computers. also increasing. A major how important a hand- It is something worth manufacturer of cell phones phone is for him. His reply mentioning that the people and laptops, Samsung, has was wonderful. He said “in buy the digital devices in opened a dealership office spite of the voice calls, I terms of their features. For in Mogadishu. The spread of use hand-phone to send example, if the cell phone digital electronics is about SMS to teams I supervise. was only tool to make calls, to enter a new beginning I can surf the internet, now the thing is different. age. it is possible to use face It means the criteria of book….” According to this choosing a Why is it so booming? user, hand-phone provides is different. Now, it is a “After 2010, the business a variety of uses. tool that enables browsing of digital electronics grew the internet, playing nicely. People understood “We used to work in a time games, listening to music, the use of the computer. that these technologies watching videos, taking We daily receive about 50 didn’t exist. In 1988, I photos, and many more. customers or sometimes used a typewriter for The young generations are

Somali Business Review Special Edition 17 more interested in these for communication to features than just making the world of internet and calls. The same applies . The to computers. Buying a people’s civilization is Despite the chaos, new laptop necessitates how they learn and use many businesses of making sure that a the technologies of their digital electronics were number of characteristics modern days. Now, we are including speed, capacity, in the 21st century, the launched. The market maintainability, durability, century of dotcom, wireless of electronics showed and portability, etc are communication. We are noticeable improvement available. really swimming in a part of a world full of streams in the last few years. The depth and the spread of of new and ground-breaking Before 2006, buying digital electronics usage in technologies which are desktop commuters Mogadishu have increased sometime disruptive. This recently. This implies two results in a great impact on was not easy. Now, things. First, the traditional individuals, organizations, computers are available business models are and society. in every office. Laptops being replaced by modern business models. Second, Although, the thing is are increasingly used the consumption of the somehow different in the by individuals. The use technology is increasing context of Somalia, there of hand phones is also among the society. There is an undeniable progress is a significant acceptance in the use of technologies. increasing. A major of technology among the If we look one decade back, manufacturer of cell society in its various you can feel that Somali phones and laptops, classes. This indicates that society has been gradually we are gradually moving understanding and using Samsung, has opened towards a modern society, the digital technologies. a dealership office in the digital literacy. The trend is forward. There Mogadishu. The spread will be more creativity in Conclusion the use of technology for of digital electronics is The people always embrace the years to come. about to enter a new the technologies of their beginning age. age. They evolved from the use of horses and birds as major techniques

Somali Business Review Special Edition 2013 18 Growth Challenges Facing Small Businesses in Mogadishu

By Abdulrahman M. Nogsane With the many Lack of government Non-standard products uncertainties and intervention Counterfeit products disruptive effects Some of the indicators have found its way into of today’s dynamic of stable macro- Mogadishu markets business environment economy in a country unlike any other time sustainability are the record of price in the past history. becomes particularly stability, low inflationary Some individual disturbing challenge environment and stable enterprises infamous .Albert Einstein was market situations. in their respective quoted saying: “in the While in contrast, high market segments are turbulent environment inflationary environment, continually alleged of the 21st century the depreciated currency for the importation complexity of the way with volatile market of nonstandard organizations react to conditions imply poor (counterfeit) products. the environment match economic performance The counterfeit with the turbulence of which deters reliability products predominate the environment”. in a market and creates in some sectors unfavorable climate for among them consumer This article will provide business growth. goods, paralyzing the snapshot of certain Field studies have shown fair competition from key aspects influencing that in the absence of genuine products and the challenges of small active governing bodies consequently leading to businesses in Mogadishu. these implications the failure of scrupulous Notwithstanding such as insecurity, small traders’ there cognition of the depleted infrastructure, businesses. redeeming features unregulated market small businesses played, and lack of government In one of the reported their development support have cases, a businessman and sustainability is duplicated negative in the cosmetics was largely constrained by influence on business put out of business a number of factors in performances. Small by counterfeiters who the micro and macro business enterprises imported imitated environments, namely; in the informal sector products selling almost lack of government may therefore be more one third the price of an intervention, poor prone to failure, if there item in his . The infrastructure, is no active government man dealing with price insecurity, entrepreneur intervention which sensitive customers misbehavior, technical creates supportive was left to decide deficiency and alarming climate where they can between two ethical importation of non- operate under the legal dilemmas; whether standard products boundaries stipulated. to compete with among other factors these counterfeiters outlined in the following and import the same sections. products or quit the

Somali Business Review Special Edition 2013 19 business for good cause corners of the city are experience in the business and finally chose the latter in part prompted by the field and managerial selling off his stock and superficial disarmament, skill deficiency. Lack of leaving the business. This prevailing culture of experience is a common paints a picture of how impunity and impending occurrence particularly in simply group interests transition. In essence, the manufacturing sector. prevail over the public the combinations of these In one of the casualty, interest in the absence of scenarios give armed during the early stages of functioning governmental criminals an incentive to act their startup business, institutions such as the in such daring manner and if some entrepreneurs have smallest quality control unit the necessary intervention purchased low cost but and the formal regulatory is not put into place, the sham equipment. This bodies. rate of these incidents critical error takes place would likely continue to take upon the procurement Insecurity their tall and pose adverse of the equipment and is The security remains one effects on business and later discovered when the of the critical challenges finally the economy of the machine or equipment faced by the contemporary country. breaks down during small business community production and often in Mogadishu. Among Other factors leads to the immediate recent challenges in the Experience related discontinuance of their security spheres are deficiency businesses. Moreover, armed robberies that took Some of the vastly many small business the lives of their victims. attributed set of reasons entrepreneurs do not These security incidents of small business possess sound technical which took place in several challenges include, lack of knowledge and as such suffer

Somali Business Review Special Edition 2013 20 managerial skill deficiency. concentrated business certain that he has the This is coupled with their areas and sometimes apply abilities which will permit lack of awareness to seek copy cut strategies by him to succeed where his professional assistance in supplying the market similar predecessor has failed the various functional areas products in a magnitude. ...Unaware of the odds of their business. This causes imbalance to against them, and largely the equilibrium of demand ignorant of the weapons Entrepreneur’s and supply which in turn of trade, prospective misbehavior affects pricing issues and proprietors march stolidly Another major challenge the success of one business to the ambush”. (TNEC also lies entrepreneur’s comes at the expense of 1941). behavior which tends to the other. Typically, this be obsessed by what the limits the growth potential Conclusion call as ‘Xiiso’ – of many small businesses Given the caveats outlined a temporary desire or and creates lack of focus in above, it is clear that interest of activity that niche markets. the disruptive forces in pushes people to pursue the external environment enthusiastically something Lack of information present threatening but lasts only for a short Lack of information also danger to small business period of time. “Xiiso” in this tends to cause higher growth. To this end, firstly sense means what might incidence of small business there is an urgent need for be called as “Faddishness”. failure. There are reported the relevant government A significant number of cases where a small business administrative bodies small businesses have that failed another hopeful such as monetary and the been started due to this entrepreneur had taken up commerce institutions influence and rarely survive. the same venture equipped to step in and provide An Entrepreneur starts with no information of the support services including, to pursue new business challenges that lie before regulations governing probably that of a friend while him, the entrepreneur conduct, adoption of prior knowledge and or field falls at the same trap his specific management interest is not considered predecessor did and meets policies and practices to as prime factor. However, the same fate. This confers improve the effectiveness when the challenges of a picture which seems to be and sustainability of small the business emerge the similar in some respects to businesses. emotional appeal ‘fad’ fades the US Temporary National and the business goes to Economic Committee Secondly, it is also decline where eventually it comment cited by Peacock essential for small sadly meets the definition (2000) that said: business entrepreneurs to of failure. seek counseling services “The chance of a newcomer from external consultants Business overcrowding becoming an established in a range of areas; Similarly, other growing member of the business such as preparation of concern is the business community is sadly slight. feasibility studies, auditing overcrowding of one He carries on until his and financial services, area. The majority of small funds are exhausted and managerial capacity building business entrepreneurs then disappears from as well as employees’ in Mogadishu have the the scene. His place is trainings, tendency to target taken by another hopeful,

Somali Business Review Special Edition 2013 21 Somalia, Emerging International Business Market By: Abdirahman Ahmed Mudey istorically, Somalis public institutions leading controlling trade routes in had trade across to massive unemployment the African continent, and Hthe border with the across the nation. Somalia having the capacity to offer neighboring countries, the responded quickly to the supply-route for goods to and other unexpected crisis by the landlocked countries world countries. Somalis setting up small businesses nearby whose population is had a trade with ancient of their own so that they very big. Egyptians, exporting goods can ensure families make to in exchange for ends meet. Despite the importance of necessities at home. This the location, the skills of sort of trade was on small This has resulted in the the Somalis in businesses scale however the world Somalis making trade with can be upgraded into a had undergone tremendous the regional countries Global level. They can take change from 1980s to fostering the trade ties advantage of the current 1990s. Phenomena called among the east African open markets across the Globalization had come communities. From such world, now that trade to light. Somalis trade business adventures, barriers were removed; with the rest of the world Somalis obtained world countries realize gained momentum when experience that there is that a country should only the cost of transportation a possibility of Somalia to produce goods and services and communication were become business market they can efficiently produce. lowered to a reasonable for the region. Furthermore, the nations level. Now that, Somalis One may maintain that can exchange goods and at home do businesses Somalis population is tiny, services thus improving with countries across the largely displaced across both social and economic world by consuming goods, the country or already fled conditions in the countries services imported from the country. As a result, of the world. Regionally, almost every corner of the the country cannot be countries have made globe. Although, Somalia an international market. treaties paving the way for descended into a civil strife, The strategic location of full economic integration. the citizens managed Somalia, may establish Somalia is no exception she to maintain businesses trade corridor that can take her own share despite the pitfalls around supplies goods of different regionally as well as globally. the corner. types to the regional states in particular and Large number of Over the past two decades, the African continent as International investors one of the main sources a whole. Having small are looking for lucrative of income for the Somalis number of population does portfolios abroad, who not at home was the rise of not prevent Somalia being only believe international local medium and small a large possible market portfolio reduces risk but businesses. The fall of the that may emerge from the also believe investing abroad military regime in 1991, east African communities. can reduce cost per unit marked the prelude of Somalis enjoy having the significantly, if they place anarchy that wiped out largest beach in east Africa their production facilities in

Somali Business Review Special Edition 2013 22 a country where the cost leadership takes over the of creating regional of material and labor is very power, then they ensure market. To ensure the low. Somalia proves to be that tranquility is restored flow of capital and people one of the places where in Somalia giving them from other countries, the the cost of production the power to overcome administration should make may be regarded very low. the current international sure that policies and rules The available raw materials outcry of piracy that had that act as hindrance to like, livestock, disrupted the world trade. the trade are removed to coupled with the finishing the extent that the country industry remain moderately Economic problem: becomes conducive market priced, this may act as a They can also manage for foreign investors to platform to attract foreign to ensure invest. Similarly, stock investors. becomes much stronger market that facilitates than its current status, investment should be Factors that can speed up leading to better Balance established so that raising that market of Payments. funds will not be a problem 1. Political and economic anymore. stability Free market system: 2. Free market system The country should also Conclusion 3. Infrastructure ensure that the market Somalia remains viable system is free, whereby trade route at regional as Political risk: the administration does not well as international level, The main risk facing the have strict restrictions on turning the country into an emergence of such market the movement of goods and international market is easy is the political instability of services, if this happens it if its people work towards the country. If an effective defeats the whole purpose realizing such dream.

Somali Business Review Special Edition 2013 23 Private Air Transport and Customer Care in Somalia

By Abdikarim Mohaidin Ahmed Introduction these enterprises to some while there is a poor was founded serious dilemma facing their customer care especially on 5 March 1964 as prospective customers when complaint handling is the newly independent especially those take place due. Somalia’s national airline. when the connection route The country’s then civilian are done. Moreover, the Customer care and government and paper will suggest useful business development owned equal shares in the ways which can be used to Customer care is a crucial company, with each holding mitigate such problems. element of business a 50% controlling stake. The success. Every time you carrier began operations Current Situation have contact with your in July of the same year. Despite the unquestionable customers you have an It initially served domestic positive contribution of opportunity to improve destinations, with three the private enterprises your reputation with DC-3s and two Cessna involved in air transport, them and increase the 180s. In March 1965, the prospective customers likelihood of further sales. the airline embarked on its face numerous problems. A Customer care involves first international route, poor connection routes are putting systems in place to to . Somali Airlines always done so that the maximise your customers’ became a fully state-owned customers have to remain satisfaction with your company in 1977. in transit all day long some business. It should be a However, Due to the times more than 48 hours prime consideration for outbreak of the civil war in the airports. every business - your sales in the early 1990s, all of Moreover, most of the and profitability depends the carrier’s operations customers are not familiar on keeping your customers were officially suspended with the foreign languages happy. in 1991. The void created making hard for them to by the collapse of the communicate with the Use customer care to airline has since been airport workers while they increase sales filled by various Somali cannot find a person from Your existing customers owned private carriers, their carriers who can help are among the most such as , them. That had caused important assets of your and Puntair. many of them to be sent business - they have already These private enterprises back home by Airport chosen you instead of your played an important role authorities as I witnessed in competitors. Keeping their in connecting Somalis to Entebe and Jomo Kenyatta custom costs far less than the other world. Without International Airports. In attracting new business, their presence a lot of addition to that, delay of so it’s worth taking steps business couldn’t survive. the flight timelines is very to make sure that they’re The objective of this paper common problem among satisfied with the service is to draw the attention of these private enterprises they receive.

Somali Business Review Special Edition 2013 24 There are a number Conclusion and After all, these of techniques you can recommendations enterprises should employ, including: The private owned implement certain • providing a free carriers who perform type of customer care customer helpline business in Somalia by collecting their • answering frequently played a worthy role in complaints, stand by asked questions on filling the gap and serving their side while they are your website the society for wide still en-route, provide • Making follow up calls range of businesses. them the necessary after sales These include facilitating help they need, give • providing free the transportation them the best advice products that will from place to place for which is a valuable for help customers look business, education, their transportation after or make the health, or tourism process and maintain most out of their purposes. It also helps their well being as much purchases the import of business as possible. That will • sending reminders items very early through open a door for business when services or cargo services. No to compete and develop check-ups are due one can ignore their effectively in the current • offering preferential beneficial contribution and future market by discounts to existing to the society in many retaining and creating customers on further different ways but much potential customers all purchases still needs to be done. the more.

Somali Business Review Special Edition 2013 25 Technology Transfer: What Everybody Should Know By Ismail Mohamed Ali Introduction in the third world. diffused throughout human n the 21st century, The developing countries activity” David (1992). Yet, the digital age, the are struggling to get a viable another concise definition Iimportance of technology and sound technological marks it as “the movement has increased globally. The base. This is because of new technology from its good use and understanding technology is a crucial input creator or researcher to a of modern technologies in the industrialization and user” (dictionary.reference. has become one of the development of nations. com, accessed 2012). distinguishing factors when It is an important factor it comes to development that can revolutionize the The definitions may seem of nations. There are good economy. The developed diverse but they all agree hopes, here in Somalia, that countries hold the source on one thing. They agree years of anarchy will end of technology. They produce on that technology process and both public and private it and transfer it to the involves two sides, one side sectors will continue to rest of the world. The that is transferring and recover. Therefore, it is receiving countries are other side that is receiving. the time to shed the light said to be consumers. The The transferors and on many important topics deal occurs between few receivers vary depending on including technology. countries of producers and the type of the technology This article examines vast majority of consumers. being transferred. It is technology transfer, a There are shared interests also assumable that the globally-discussed issue of and some concerns of both transferred body can be technology. sides. The above sentences in the form of technology Suppose you need new carry a broad meaning equipment or knowledge software in your business. of one topic, technology behind the technology. Do you develop it by transfer. Who are the Suppliers yourself or you acquire it of Technology? from other companies? What is a Technology Technology generation Do you use a familiar, Transfer? comes as the result of time-tested technology, There is no general innovative activity which or do you incorporate a consensus on how exactly is mainly concentrated new technology with a technology transfer should in few industrialized great promise? Do you be defined. According to countries (Nagesh, 1997). look for empirical evidence Barton (2007), technology Technological innovations that the new technology transfer is basically the occur in developed countries works, or do you base on flow of knowledge from one and then transferred to your personal view, your human being to another. developing countries Falvey friends’ advices, or vendor The transferred knowledge & Foster(2006). According suggestions? Your choices can flow from the research to a report of are probably determined by industry to the applying Framework Convention on whether you see yourself industry or from one Climate Change (2010), as technology producer or firm to another. Another the top five technology technology consumer. In definition says “technology suppliers are , any case, it is important to transfer is the development USA, Japan, Denmark and have a technology-selection of technology in one setting . Their contribution strategy. Choosing a that is then transferred constitutes to 58 % of viable technology that fits for use in another setting” the transferred technology organizational objectives is Jun(2009). Another labeled by project type. This is one of the major challenges it as “the process by which when projects for which of many countries that fall science and technology are their source of technology

Somali Business Review Special Edition 2013 26 is unknown are excluded. suppliers are accused diminish the flow of Sangeeta & Martin (2010) of precluding from host technology and technology- also emphasize the above- countries the possibility of related knowledge from mentioned figure. They absorbing the knowledge technological industries indicate that 10 developed behind the technology. to the rest of the world. countries provide 84 Having the capability of Statistics show that percent of the resources absorbing the modern the rate of technologies spent on Research & technology and molding it transferred to OIC Development (R&D) globally into the economic power countries was estimated and control 94 percent of is something vital. This is at 2.9%. hosts technological output. USA, where the comprehensive 74.5% of the 2.9% Japan and Germany come definition of Sangeeta & (Statistical, Economic in the top of the list. The Martin (2010) applies and Social Research countries such as France, to. They assert that and Training Centre for UK, and Canada, also technology transfer is not Islamic Countries (Sesric) appear in the list. merely the purchase of Manager, 2010). equipment but includes The Host Countries: the transfer of underlying Recommendations for Opportunities and skills and knowledge. This the Host Countries Concerns enables the host countries On white paper by Global As the proponents of to develop entirely new Intellectual Property technology say, the new products and to establish Center (GIPC), 2010, advances in technology can professional know-how several recommendations result in a paradigm shift in (UNTCAD Series, 2001, have been mentioned which the way of doing business. cited in Santikarn, 1981). the host countries may Nations who employ good Another studies put the consider: culture in technology blame of technology transfer • First, Governments diffusion, sooner they can challenges on what they should establish a strong meet the needs of their called compulsory licensing, legal environment. society and gain self- patent exceptions, and Legal environments efficiency (Yazdani et al, intellectual properties that provide strong IP 2011). They can stimulate rights (IPR) protection. rights which in turn can local innovation Park & give rise to the birth of Lippoldt (2008). The Another important capable innovators that developing countries can challenge is that many can efficiently manage create wealth, knowledge of least developed the flow of their products and ability through countries may not be into global markets. technology. Furthermore, socially, economically, or • Second, governments there is a correlation even politically ready to should encourage R&D between technology accept and empower the and globally-based development and social, technology adoption in their invention. Technological political, cultural and countries. It has been found breakthroughs come economic welfare (Yazdani that the states marked as as a result of massive et al, 2011, cited in Khalil, least developed countries and continuous R&D 2001). (LDC) did not manage yet activities carried out to provide their society’s by researchers and In spite of huge basic life infrastructure scientists collaborating opportunities, there such as transport, clean across the globe. are growing concerns water, healthcare, food and Governments should of developing countries. education. So innovation spur basic scientific Studies show that type of and acquisition of new research and encourage technologies supplied to technology come beyond the global collaborations. developing countries came scope of these countries. • Another thing in the form of capital goods government should and equipment. Technology The challenges can greatly consider is adopting

Somali Business Review Special Edition 2013 27 economic policies that in human capital. necessary for the alignment support innovation, It is recommended of new technologies with namely government for governments to national and organizational incentives for R&D, make the long-term goals. A technology is an fostering collaboration investments necessary important factor that can among various research to create a knowledge- cause the economy to thrive. institutions either in based society. This Acquisition and adoption public sector or private includes creating strong of a viable technology is sector, promoting open educational systems something necessary markets and trade, and that provide necessary for industrialization and national policies that technical skills training development of countries. support innovation and and supporting Technology transfer is a technology diffusion. students to pursue globally -addressed issue. careers in science, There are some challenges • Improving local technology, engineering, of technology transfer infrastructure such and math. Having in developing countries. facilities, roads, power research institutions, Missing governments’ supplies, healthcare, which can attract both readiness is one of them. and building local local and international Researchers suggest communities can also researchers, and can recommendations for host lead to better utilization foster collaboration, is countries to follow. Building of advanced technology. also recommended. strong human capital and investing in scientific • The last and which Conclusion research are two of them. seems to be more Having a good technology- important is to invest selection strategy is

Technology generation comes as the result of innovative activity which is mainly concentrated in few industrialized countries (Nagesh, 1997). Technological innovations occur in developed countries and then transferred to developing countries Falvey & Foster (2006).

Somali Business Review Special Edition 2013 28 Contribution of Turkish Investment to Peace-Building Process in Somalia By Ibrahim Mohamud Hamud

n the middle of nowhere, scholarships and started decade. Investment in Turkish government dared airline roots from around Africa in 2011, exceeded Ito set its feet on the land the world that is fast, $5 billion.” of Mogadishu, a political reliable and cheap. The niche, Somalia; a country Turkish airline, the first Residents of Mogadishu some outsiders call “the major commercial carrier say that Turkish nationals most dangerous places on to fly directly to Somalia are brave. This is because; this planet.” in more than 20 years, is is welcome ally in expected to charge the Somalia. To remind you the After contributing millions lowest fares soon. Turkish economic power, of dollars to the famine- Turkey is targeting 10th affected people in the Future trade possibilities in place in the world economy IDPs Camps in Mogadishu, the energy, construction, in 2023. Turkish government agriculture and fishing are started to extend a mutual also in the agenda and/ These events came in relationship hand to sign or on the radar of Turkish period when transitional investment deals with investors. Laura Heaton statehood comes to an Somali government that of the Journal of Foreign end. The Somali business could last for nearly 50 Policy says “According to people run into lobbying for years. the Turkish Ministry of the expected projects to Economy, Turkish private get their share in the pie. It built schools, established investment in Africa has The ongoing and expected hospitals, provided risen sharply over the past Turkish investment projects

Somali Business Review Special Edition 2013 29 will provide employment Therefore, employment In conclusion, Turkish opportunities, re-building opportunities, one of the investment ambitions of the war-torn capital contributing factors to are helping hand of the and restoration of public peace-building process, peace-building process in services. It is safe to say will be in the grab of so Somalia. There are several that Turkish government many Somalis who were indicators of this impact. will provide some security unemployed since 1991. Foreign direct investment assistance to Somali will increase, because of government to ensure Being hopeless of getting other countries follow the safety of its long- employed encourages the suit of Turkey. Many term national goals, and the youngsters to get employment opportunities investment projects in involved in robbery and will be created and hence, Somalia. theft. According to Kameel less violence and anarchy. (2004), unemployment Finally, expected security The arrival of key role player and poverty are some of collaboration between in the world politics such the reasons why crime is Somali government in as Turkey, the investment committed in the society. one side and the foreign opportunities, and the investors on the other will possible security assistance In addition, Somalis are boost stability. to Somali government well-known for helping each are expected to create a other out (Hamud, 2011). peaceful environment for The effect of the employment both Somalis and foreign is that families and friends investors. According of the employed person will to Sarah Farah at VOA all benefit. Furthermore, (2012), “Turkish officials the people used to get The arrival think bringing stability to enough time to analyze and Somalia will lead to stability brew tribal conflicts and of key role in the broader region.” powers, but once employed, Also, Observers see new the amount of time left for player in investments as a magic this is minimal. Hence, the wand to accelerate an decrease of the obstacles the world anticipated recovery from to peace will provide ample problems that have torn time to those who are politics the country apart. involved in peace-building process. such as The arrival of Turkish government in Somalia The then president of Turkey. encouraged other countries Somalia emphasized that to follow suit. The objectives “Turkey’s help will be of great may be different, but importance in maintaining investment is one of them. sustainable peace in the This will increase the size of country during his meeting foreign direct investment with Turkish business men” (FDI) in the infrastructure (Todays Zaman, 2012). of the Somali economy.

Somali Business Review Special Edition 2013 30 The Exercise of Third Party Logistics in Somalia

By Abdikarim Mohaidin Ahmed Unfortunately, private enterprises in Mogadishu neglected the use of these resources properly. Private companies especially those who import goods failed to package their products within containers so as to protect them from accidental damage. They also recruit personally owned vehicles to transit their goods from the seaport to their warehouses and their distribution centers. But what is more interesting Introduction facing the private is that these vehicles are There are similarities enterprises especially excessively overloaded between the biological those that take place and driven through the theory “life will find a when transit of goods rocky unbalanced roads way,” and the economic from a place to another of the city leading to the situation in Somalia. In is by hand. Moreover, overturn of the trucks and essence, the shadow the paper will emphasize damage of the products. has the contribution of Third On the other hand, found a way. Despite Party Logistics (3PL) on receiving process is very being plagued by the mitigating such problems. complex due to absence destruction of colonialism, of needed equipments an influx of small arms, a such as folk lifts, Reach dictatorial regime, civil Transportation problems trucks, Block stacking war, and famine, private Physical distribution equipments, Side- enterprise has managed seems not to be an loader, Multi-directional to provide most of the easy task to do. It truck, etc. in addition to economic services that requires both physical that, Order Picking and the modern nation-state and mental resources. replenishment process is responsible for. These resources include could be complex task to transportation vehicles, do for the same reason. However, there are many handling systems, challenges associated packaging equipments Overview of third party with performing a business and more. The process logistics activity in Somalia also requires unyielding Third party logistics (3PL) particularly Mogadishu the management procedure companies are a becoming capital including security, to handle and execute an important part of infrastructure problems, distribution tasks today’s supply chain. These business literacy and so successfully. Some companies offer services many others which cannot companies adopted the that can allow businesses be wrapped up in this text. use of third party logistics to outsource part or The purpose of this paper to overcome such critical all of their supply chain is to highlight the physical everyday jobs. management function. distribution challenges Many 3PL companies

Somali Business Review Special Edition 2013 31 offer a wide range of distribution. These services including; advantages can be Recommendations inbound freight, categorized into: Key recommendations freight consolidation, include the rapid warehousing, Cost advantages development of human distribution, order There are several resources, greater fulfillment and outbound cost advantages attention should be freight. The growth of claimed because of the paid to highlight the 3PL companies has elimination of asset understanding of the been driven by the ownership. In particular, benefits behind the use of need for businesses to there are capital cost 3PL. Universities should become leaner, reducing advantages through encourage business assets and allowing using third party to use 3PL within focus on core business distribution because the their public lectures processes. client company does not and panel discussions. have to invest in facilities In addition to that, Rise of Third Party and resources such as Somali entrepreneurs Logistics Providers distribution centres should pay a particular The growth of 3PL and vehicles as it would attention to develop companies began back for its own operation. such companies who in the 1980’s when Thus, the capital can can bring mutual benefit businesses began to look be invested in more and can make it possible for new ways in which profitable areas of the for 3PL business to they could outsource business, such as new take root and flourish in logistics functions and production machinery, Somalia. concentrate on their retail stores, etc core business. One company that has been Organizational associated with the 3PL advantages Unfortunately, revolution is FedEx. The One of the prime reasons company’s overnight quoted for the move to private enterprises in delivery service changed the use of a third-party Mogadishu neglected the way in which distribution company the use of these business to business and is the opportunity for resources properly. business to customer users to focus on their transactions operated. core business. There Private companies This offered businesses are both organizational especially those who the opportunity of using and cost benefits to import goods failed to just-in-time techniques, be gained from this. package their products which saved warehousing The cost advantages within containers space and reduced have been identified overall costs. The in the capital cost so as to protect introduction of efficient- savings outlined in them from accidental consumer-response a previous section. damage. They also (ECR) techniques led The organizational recruit personally to smaller and more advantages are less efficient shipment sizes, obvious, but concern owned vehicles to which in turn further the opportunity for transit their goods reduced costs. companies to streamline from the seaport to their organizations their warehouses Third party logistic and particularly Benefits to concentrate and their distribution There are a large management expertise centers. number of advantages in the core business claimed for third-party areas.

Somali Business Review Special Edition 2013 32 Does Small Business Need Consulting? By Ahmed Salat Ahmed Haraf Introduction per day as much as they highly expensive highly The role of the small are born. That means expert individuals and businesses in the for every single small organizations. growth of the market business created, a economies have been number of other similar The role of business well documented in the businesses cease to exist consultancy business literature with the same rate. This The level of risk back and forth. Their situation indicates the management within the contributions to the need for sustainability big corporations tends economy included, within the small business to grow in tandem with but not limited to, world. the level of pressure accommodation of the external factors and great majority of the new The sustainability of the capital providers apply. work force, a considerable big businesses comes This means big companies outreach of consumers, from the regular risk have sometimes business and capital employment. management and the obligations to use the This said, the continual seeking out of business service of high calibre growth and prosperity of consultants to improve consultants to engage in the small business should continual business highly complex business be encouraged. However, decisions. They (the big decisions on a regular the facts unfortunately corporations) budget for basis. This fact can points out that small and regularly pre-plan contribute to the common business nearly die out to employ the service of knowledge that big

Somali Business Review Special Edition 2013 33 corporations hardly fail, and be overemphasized. As employee level of less than if they do, they fail hard. This competition increases, 500. brings us back to the small small businesses owners business traffic in both should be aware of the Conclusion directions. The continued changing environments and The need for business failure of small businesses demands of the day. Such consultancy is important can only increase the level important documents as consideration for small of frustration and despair strategic plan and market business owners to grow among young business plan need to prepared and financially. The firms people. implemented in simplified that provide business One of the reasons small terms. When it comes to consultancy can be helpful, business fail is the lack of accounting, only taxation given the high costs they business knowledge of the is a requirement. However charge. However, there start-up owners. They are accounting for decisions to is an alternative way of so ignorant of the ways decide on special orders and acquiring consultations. of business that they the use of opportunity costs Self help books specifically don’t even think about the in day to day operations are written for small business reasons for the business also necessary. owners can be very helpful failures. They think it’s only Recruiting good hand and practically useful. natural to fail in business. for the management If business failure is of your business is one natural, is it natural to lose way of taking benefit of $15,000 worth business a good business advice. The level of risk establishment? No, even There are small business for the millionaire, one consulting firms operating management penny lost represents one in the country that can penny less from the GDP of help small businesses within the big the country. grow. Communicating with Small business owners these firms is a first step corporations can benefit from the in taking control of your directions and suggestions business. Also there are given by the business business magazines that tends to grow in experts in a variety of relay information from ways. Management and outside sources that can tandem with the accounting consultancy be of help. can make a huge difference Finally for avid reader level of pressure in small business owners, there is an arsenal sustainability. of self help books specifically written to be the hand book external factors Cost of consultants for small business owners. The cost of consultancy Even accounting books and capital can sometime outweigh written for non accounting expected benefits in a managers can serve basic providers apply number of situations. business needs for decision However, the need for making. This important consultancy in even in tiny when small business is business setting cannot defined as a firm with an

Somali Business Review Special Edition 2013 34 Somali Business Review Special Edition 35 Somali Business Review Special Edition 36