Somaliland Industrial Enterprises Survey 2022

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MOiiD, Yasir Osman Ahmed Ministry of Investment and Industrial Development 2022
Somaliland Industrial Enterprises Survey Investors, Manufacturers
2022 27 English Somaliland
The development of productive capabilities has historically been a fundamental component of sustained high-growth rates. Industrial development ensures learning-by-doing and has strong spillover effects through horizontal and vertical linkages across sectors and activities.
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The development of productive capabilities has historically been a fundamental component of sustained high-growth rates. Industrial development ensures learning-by-doing and has strong spillover effects through horizontal and vertical linkages across sectors and activities. Albeit sectoral boundaries have become increasingly blurred due to the raise of high-productive agriculture (horticulture) and service (logistics) sectors, manufacturing still holds promise due to embedded increasing returns to scale properties and high potential for technological, organizational, and product-level innovation. The importance of developing a strong manufacturing industry is integrated in current African Union projects such as the African Free Trade Continental Area (AfCFTA), which aims at promoting continental and regional supply chains by capitalizing on the fact that manufacturing exports/imports are larger in intra-African trade as compared to extra-African trade. Somaliland currently depends on external resources to sustain the domestic consumption of often very basic needs (e.g., food or household goods), putting pressure on its balance of payments and critically relying on remittances and foreign direct investment as compensation mechanisms for the ensuing trade deficit. The country has an active manufacturing sector with up to 63 firms registered at the Ministry of Investment and Industrial Development (MoIID). This notwithstanding, there currently is scant evidence of the state of these industries as well as detailed information about their characteristics. If they are to become a key player in regional value chains, efforts are needed to guide action to upscale their capabilities

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