Report of the 9th Economic

Sector Coordination Meeting (ESCOM)

Maansoor Hotel, Hargeisa, January 22ND 2017

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About the Economic Sector Coordination Meeting (ESCOM)

The Economic Sector Coordination Meeting (ESCOM) constitutes a key element in Somaliland’s

National Development Plan (NDP) framework 1 .ESCOM is primarily a component of Government's Aid Coordination mechanism. There are 9 sectors under this process including:

Economic, Agriculture, Infrastructure, Health, Education, Water, Production, Governance and

Environment. Membership of each sector coordination forum includes: Government, PS, NGOs

and Development partners.The 8 sectors constitute Level 1 of the aid coordination process. Each sector was expected to hold bi-monthly coordination meetings chaired by a government ministry

or institution and co-chaired by a UN agency. At Level 2 is the inter-sectoral coordination

meetingwhich takes place on a quarterly basis. This meeting constitutes all chairs and co-chairs of the 8 sectors mentioned above. Level 3 is the high level National Coordination Committee which

meets Bi-annually.

The purpose of the Economic Sector Coordination Meeting (ESCOM) is to:develop sector

monitoring and coordination mechanisms, oversee implementation of agreed policy interventions,

provide policy guidelines and act as a forum for networking and information sharing.The

Economic Sector Coordination Meeting (ESCOM) brings together different economic sector stakeholders to enable information sharing and networking on issues that impact the economic

sector in particular and Somaliland’s economy in general.

Somaliland is designing a new National Development Plan (NDP) and it is expected that

ESCOM, alongside all coordination mechanism under the previous NDP, will be reviewed. In the

meantime, ESCOM meetings will be held on a quarterly basis to enable better follow up on meeting resolutions and enhance the overall quality of ESCOM.

1 Somaliland’s National Development Plan, 2012 -2016, has ended. A new National Development Plan (2017 – 2021) is currently under preparation.

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TABLE OF CONTENTS

ACRONYMS 4

ESCOM PICTORIAL 5

1.0 INTRODUCTORY REMARKS 6

2.0 FORMAL OPENING OF THE 9TH ESCOM MEETING BY THE VICE

MINISTER OF TRADE AND INVESTMENT, HON. AHMED MOHAMED

NOOR 6

3.0 ESCOM PRESENTATIONS 7 3.1 Presentation by the Ministry of Finance 7 3.2 Presentation by Ministry of Industry 7 3.3 Presentation by Ministry of Trade and Investment 8 3.4 Presentation on Somaliland’s legal framework by Legal Consultant, MoTI 10 3.5 Presentation by the Somaliland Chamber of Commerce and Industry 10 3.6 Presentation by the 2nd National Development Plan (NDP) Technical Team on the NDP (2017-2021) Formulation Process 11 3.7 Presentation on Somaliland’s Informal Economy after the Civil War 12

4.0 QUESTIONS & COMMENTS 14

5.0 CLOSING REMARKS BY ESCOM CO-CHAIR 16

6.0 ESCOM RECOMMENDATIONS 1716

APPENDIX 1: ATTENDANCE LIST 18

APPENDIX 2: AGENDA OF ESCOM MEETING, 22ND JANUARY 2017 20

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ACRONYMS BMOs Business Membership Organizations

CoM Government of Somaliland Council of Ministers DB Doing Business Reforms

ESCOM Economic Sector Coordination Meeting

GoSL Government of Somaliland

IEW Informal Economy Workers IFC International Finance Corporation, WBG

MoEM Ministry of Energy and Minerals

M0PND Ministry of Planning and National Development MoTI Ministry of Trade and Investment

NGOs Non-Governmental Organizations

NDP Somaliland National Development Plan

PSD Private Sector Development SCORE Somali Core Economic Institutions and Opportunities Program

SDF Somaliland Development Fund

SLCCIA Somaliland Chamber of Commerce Industry and Agriculture WBG World Bank Group

WGs Working Groups

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ESCOM PICTORIAL

9th Economic Sector Coordination Meeting (ESCOM) Group Photograph

Vice Minister of Trade and Investment, Hon. Ahmed Mohamed Noor formally opens the 9th ESCOM

ESCOM in Progress

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1.0 INTRODUCTORY REMARKS

The 9th Economic Sector Coordination Meeting (ESCOM) took place at Maansoor Hotel

in Hargeisa on January 22nd 2017. The meeting was opened by the ESCOM Co-Chair,

Mr. Mohammed Awale, who welcomed all participants and thanked them for their

participation. He noted that a number of important policy recommendations had emerged

from ESCOM consultations and many of these recommendations, if followed up and

implemented, would greatly benefit the economy. He therefore emphasised the need for

consistent follow-up and implementation of agreed upon recommendations. He

welcomed the Chief Guest, Hon. Ahmed Mohamed Noor, Vice Minister of Trade and

Investment, to the meeting and wished participants successful deliberations.

Additional welcome remarks were made by Mr. Michael Thyge Poulsen of Danida who

is also the co-chair for ESCOM. Mr. Poulsen noted that ESCOM is a very important

consultation forum focusing on policies and interventions that impact the private sector

and the economy of Somaliland. He informed participants that the second Somaliland

National Development Plan (NDP2) formulation process is still ongoing and a number

sub-sector working groups such as finance, trade and investment, the private sector and

others have been constituted and are now fully functional. He however noted that data

collection and access remains a big challenge and there is a lot of missing data. He

encouraged partners to make available information relevant to the NDP formulation

which may be in their possession in order to ensure that the target for generating the

NDP2 draft report by April 2017 is met. He further noted that the special arrangement for

Somaliland is coming to an end and the new NDP2 will inform the aid structure going

forward. According to the agenda of the ESCOM all four sectors of the economic sector

were asked to make presentations based on their respective sub-sectors.

2.0 FORMAL OPENING OF THE 9TH ESCOM MEETING BY THE

VICE MINISTER OF TRADE AND INVESTMENT, HON. AHMED

MOHAMED NOOR

The Vice Minister of Trade and Investment, Hon. Ahmed Mohamed Noor, formally

opened the ESCOM meeting. He welcomed all participants to the meeting and

highlighted the importance of regular and productive policy consultations involving

Government the private sector and other key stakeholders. He noted that ESCOM

continues to provide an important forum for consultations on private sector and other

economic development issues. ESCOM consultations are therefore very critical to

Somaliland’s development.

The Hon. Vice Minister observed that currently, Somaliland imports a lot of goods and

services from other countries and offers a very limited range and quantity of exports. This

is a source of strain on the economy in terms of limited foreign exchange earnings,

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inability to fully exploit the country’s abundant raw materials, limited employment

opportunities for the population, and others. He further noted that the country faces

massive inflation as well as the negative effects from the livestock ban. According to the

Vice Minister, livestock is the backbone of Somaliland’s economy and partners should

ensure vital support is provided to this sector. The Vice Minister finalized his remarks by

saying that although Somaliland is not internationally recognized, the country is ready for

economic development and is keen to strengthen its business relations with the outside

world. He wished participants fruitful deliberations.

3.0 ESCOM PRESENTATIONS

3.1 Presentation by the Ministry of Finance

Participants were given a presentation by the Ministry of Finance which was delivered by

Mr. Hamse Abdikadir Husein. He started his remarks by noting that the Ministry of

Finance is the custodian of the government’s financial resources with a spectrum of

responsibilities including: providing proper budgetary and expenditure management of

the public resources; managing the revenues, expenditures and borrowing by Government

of Somaliland; mobilizing adequate resources to support Government programs and

activities and; developing sound fiscal policies aimed at ensuring a sustainable budget

surplus.

Over the last 5 years or so, the Ministry has spearheaded a number of reforms including

the following policies and reforms: formulation of a micro-credit policy; fiscal and

monetary policies; comprehensive tax & revenues reforms (PFM); cross border trade

reform; creation of a Revenue Authority for Somaliland. A number of important laws

have also been enacted which include: the Central Bank law, Islamic Banking law,

Revenue Act, Government Expenditure Act, Auditing Act and Procurement Act.

Challenges and risks

The Ministry has faced a number of challenges and risks including: inadequate policy

planning and absence of reliable data; weak central bank regulation; shortage of skilled

staff; inability to use fiscal and monetary policy to reduce price instability; limited

external assistance to finance development programs; poor tax collection systems; and

absence of financial institutions such as commercial and investment banks.

Recommendations

There is need to enacting relevant customs and in-land revenue legislation. It is also

important to upgrade tax systems and procedures. Human resource development is also

required including training staff and upgrading skills. The Somaliland Central Bank also

needs to strengthen its rules and regulations. Finally there is need to strengthen financial

institutions in order to facilitate the Country’s economic development.

3.2 Presentation by Ministry of Industry

Commented [U1]: Customs and Inland Revenue Acts have already been passed so I don’t understand why Hamse included this here unless he wanted more specific legislations

on these areas.

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Mr. Ahmed Adem Ibraahim presented on behalf of the Ministry of Industry. He started

by outlining the functions of the ministry which include: regulating and facilitating

development of industries in the country; assisting the registration process of new

industries; processing the tax exemption papers for raw materials and machineries to be

used in production processing; and formulating industry policies to promote development

of Somaliland’s manufacturing base.

Key policies and reforms

Priority areas of focus which the Ministry is currently pursuing include: conducting an

intensive industrial improvement initiative; facilitating implementation of an industrial

production policy and strategy; strengthening the national industrial association; creating

industrial zones and improve skills training to meet the needs of the labour market; and

drafting the industrial act which has already been approved by the cabinet.

Challenges and risk factors

Mr. Ahmed Adem Ibraahim also identified risks and challenges faced by the ministry

including: lack of resources to implement the Ministry’s activities; lack of an industrial

policy; limited levels of industrialisation; need to rehabilitate the country’s only cement

factory; need to provide market information and enable access to the markets. Further to

this, the absence of trade policy gives confusing signals in the market. On a more positive

note, the recent IPP training in Nairobi has culminated in the proposal to establish

Somaliland’s investment policy.

Recommendations

The Ministry made a number of recommendations including: Need to improving internal

and external market opportunities, especially among neighbouring countries; importance

of value addition industries for livestock related sectors; need to strengthen the

productive sector; importance of fostering and encouraging industrialisation in key

sectors including fishing and livestock; need to promote the mining industry; and need to

support Public Private Partnership (PPP) initiatives.

3.3 Presentation by Ministry of Trade and Investment

Mr. Mahamed Kadar AbduwahabAhmed Adem Ibraahim presented on behalf of the

Ministry of Trade and Investment (MoTI) and started by restating the vision of the Ministry which is: A State with vibrant market economy that contribute to the economic

growth and wellbeing of the society. He also noted that the Ministry’s mission is to:

Facilitate and improve the creation of business enabling environment and infrastructure

for accelerated growth of exports and trade. The Ministry’s stakeholders include:

economy facing government ministries such as the Ministry of Finance, the private sector

under the Chamber umbrella and others.

Main functions

MoTI is responsible for the regulation and development of business and commercial

activities in Somaliland. This includes registering and licensing of businesses in order to

regulate their activities and maintaining information centre services to which makes

Commented [U2]: Perhaps we include Ahmed in the incoming Addis Trade Policy training.

Commented [U3]: Mohamed presented for the MoTI while Ahmed Adem presented for the MoI as shown above.

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business news and information resources available to enterprises. The Ministry also

contributes to government revenues and is responsible for operating national fuel stations

(FS). There are 14 in total, spread from Hargeisa to Sheikh and nearby cities, from which

the Ministry realises an operating profit.

Income generated by the Ministry of Trade and Investment in 2016

IMPORTS AND EXPORTS LICENSING FEES

MONTHS INCOME MONTHS Total (S/L Shilling)

January 489,565,400 Sl Sh January 229,503,000.00

February 457,220,700 Sl Sh Feb 193,968,000.00

March 506,292,300 Sl Sh March 284,725,000.00

April 492,889,000 Sl Sh April 139,433,000.00

May 545,831,100 Sl Sh May 207,907,000.00

June 495,499,100 Sl Sh June 196,982,000.00

July 541,640,800 Sl Sh July 183,498,000.00

August 544,488,300 Sl Sh August 211,590,000.00

September 522,955,900 Sl Sh September 310,047,000.00

October 557,371,000 Sl Sh October 502,159,500.00

November 509,812,400 Sl Sh Nov 502,159,500.00

December 592,700,475 Sl Sh Dec 249,539,150.00

TOTAL 6,346,266,475 Sl Sh Total 3,211,511,150.00

Ministry’s Strategic Self-Assessment

The Ministry has been unable to fulfill is objectives due to lack of mandate clarity as well

as mandate overlaps with other Government institutions. The Ministry also faces

resources constraints including inadequate budget and lack of structured data collection

and information sharing procedures.

Identified opportunities

The Ministry has identified opportunities for improved services delivery including

working closely with other government departments to ensure that respective

departmental mandates are clarified and overlaps eliminated. This approach is likely to

reduce opportunities for interference among different departments. There is also need to

revisit management of national fuel stations to ensure a more efficient and effective

approach. Finally, it is important that the Ministry reduces red tape and bureaucratic

procedures delaying business startupsstart ups and investments.

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3.4 Presentation on Somaliland’s legal framework by Legal Consultant,

MoTI

Mr. Mustafe Mohamed Dahir, the legal consultant for the Ministry of Trade and

Investment (MoTI), made a presentation on Somaliland’s legal framework. His presentation focused on Somaliland’s commercial, business and investment related

laws/regulations. He informed participants that the preamble to the Constitution of

Somaliland creates a clear link between rule of law and economic development and

protection of property rights is of constitutional significance. In Somaliland, regulation

may sometimes be seen as a tool which can be leveraged by different interest groups to

their advantage using their respective bargaining powers within the regulating machinery.

Mr. Mustafe noted that the state of the legal framework has an impact on the pace of

Development. The legal framework is not static because changes in society and the

economy often necessitate new legislation. He further noted that overall, Somaliland’s

current legal framework exhibits both strengths and weaknesses and many laws need to

be updated. Addressing himself to the challenge of ineffective legislation, he noted that a

number of factors may responsible for this including: absence of sufficiently trained

manpower when the laws were enacted; lack of a strong Institutional basis for the

operation of the laws, absence of sufficiently developed administration of justice, and

lack of adequate resources to implement legislation.

Required legislation Purpose

Somaliland Companies Law

(amendment)

Strengthen the regulatory framework for

businesses and enable automated business

startup registration.

Electrical Energy law and energy

regulations

Provide basis for energy sector regulation

Uniform Commercial code Harmonize laws governing commercial

transactions in Somaliland

Domestic Investment Laws Spur domestic investment

Amendment of Foreign

Investment Law

Encourage foreign investment

Somaliland Industrial Law Support industrialization drive

Patent and Copy Right Laws Enable intellectual property protection

3.5 Presentation by the Somaliland Chamber of Commerce and

Industry

Mr. Abdirashid Hussein made a presentation on behalf of the private sector. He noted that

the private sector in Somaliland faces significant operational constraints which in turn

impacts their viability. The most serious constraint is the lack of access to finance. Poor

infrastructure, low human capital and insecure land rights also constitute major

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constraints to private sector growth. According to him, Somaliland has got the “basics”

right in ensuring a good environment for business with macroeconomic stability, low

crime rates and the rule of law all in place. However, the private sector still encounters a

lot of strengths including the following:

- Access to finance continues to be a major challenge and the Government has not been successful in passing the Commercial Banking Law.

- There have been several attempts to improve communication between

Government and private sector. It might be the case that the Government is not

perceived by the private sector as a partner that can be helpful. Other potential

reason is that the Government is always reaching out to the same stakeholders in

the private sector and missing out important information from other stakeholders

in the sector.

- Gender has not been targeted as an important issue. Do female business owners

have different needs? Do they face different challenges and/or in different

intensities?

- Private sector needs to be addressed as a critical sector for all the other sectors

and a full-time partner of the Government for the development of the country.

Government still needs to learn how to create the right incentives – which are not

necessarily tax incentives – and remove obstacles to engage with the private

sector.

3.6 Presentation on the NDP2 (2017-2021) Formulation Process

Mr. Guilherme Suedekum, a member of the NDP2 team and a consultant who works with

the Ministry of Planning, made a presentation to the meeting on the ongoing efforts to

formulate the 2nd National Development Plan (2017-2021). He noted that the National

Development Plan (NDP) is the main guiding document for the medium term

development of Somaliland and its implementation will support implementation of the

Somaliland National Vision 2030. He then proceeded to give a background to the NDP2

formulation process.

Review of NDP1 Activities and Approach to NDP2: He explained a number of

activities which have already been implemented including: an external Review of NDP 1

which was undertaken by the Ministry of Planning and National Development. This

review generated a number of recommendations including: need to adopt a more

inclusive approach during formulation of NDP2; need to ensure plan formulation relies

on solid evidence of the development situation in Somaliland; importance of having clear

and concise goals at objective and outcome levels; need to develop sectoral strategies and

to ensure that the next NDP is well prioritized and realistically costed.

He further highlighted salient attributes of NDP 1 (2012-2016). He noted that the plan

mainly focused on outputs for a number of development projects. It also focused on role

of Government institutions and the planning process was driven by MoPND which

developed the plan. Government institutions were required to inform MoPND about their

priority projects for inclusion in the NDP. The approach utilized in NDP1 contrasts with

the approach adopted for formulation of NDP2 which now focuses on outcomes i.e.

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targets to be achieved. It is also focused on the 9 NDP2 sectors including: agriculture,

economic, infrastructure, health, education, water, production, governance, environment

and energy sectors. While MoPND coordinates development of the plan, sector

stakeholders determine collectively the targets to be achieved.

NDP 2 Planning Architecture

Committee or Team Role

NDP Oversight Committee

– Lead the planning process; ensure that all

relevant stakeholders are committed and engaged.

NDP Technical Team – Responsible for all technical aspects of the

planning process.

NDP Sector Technical Teams

– Undertake sector reviews and prepare sector

analysis reports.

Consultants – Provide technical Assistance.

Mr. Suedekum disclosed that the NDP2 formulation team is currently working with Sector Technical Teams to: complete Sector Analyses; review the Analyses and compile

Sub-sector Analyses where necessary. The next step will be to prepare for Sector

Workshops. This will entail reaching out to sectors to prepare lists of

participants/decision makers; mapping key missing indicators and preparing baselines.

Next steps in the NDP2 Process

It is envisaged that a total of 9 Sector workshops will be organised in February 2017. The

workshops will focus on defining goals and targets based on Sector Analyses. Drafting

the NDP2 will be undertaken in March 2017 after which the draft will be validated with

key stakeholders.

3.7 Dr. Abdi Baashe: PIMS program overview; Abdi Bashe briefly provided a general overview of the PIMS program and the livelihood and value chain improvements it seeks to implement for

the rural communities and particularly in the milk production and brining it into the markets. He

also talked about the cash for work program which is intended to improve the feeder roads and

access to markets.

3.87 Presentation on Somaliland’s Informal Economy after the Civil

War

The presentation was made by Eid Ali Salan and was premised on a study that was part

of research led by Cardiff University and focused on Economic Recovery in Post-Conflict cities: the role of the urban informal economy2. The research explores the role of

the urban informal economy in poverty-reduction, peace-building and development in

post-conflict cities, and its scope to provide livelihoods for the extreme poor and a

platform for economic recovery. It identifies the main challenges which include:

2 The study was funded by DFIC-ESRC (Project ES-M008789-1)

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Lack of literacy and business skills: Only 40% of Informal Economy (IE)

workers are educated beyond primary school and lack of literacy and business

knowledge. This means that there is a lack of capacity for business growth.

Difficulties with infrastructure and operating spaces: 55% of IE workers

interviewed operated from the street without any designated trading space, or

amenities such as water, electricity and waste management provision. This not

only causes conflict between traders and other user of public space, but causes

congestion in the city which in turn causes health and safety concerns. Even

when market spaces are provided by the municipality, they are often underused

as they are inappropriately located or inadequate to meet the needs of IE

Workers. However, working environments are generally safe, although less so

for women.

Business decrease: 15% of current IE workers had suffered a decrease in

business over the last 5 years threatening household resilience and urban

livelihoods, mainly because of increased competition.

Lack of inclusion in government policy: There is a lack recognition of the role

of IE work in providing livelihoods for many households in Hargeisa. The IE

remains unrecognized in Somaliland’s National Development Plan, and there is

no enabling regulatory framework. While this means that harassment levels are

low and businesses can generally survive, there is also an absence of protection

for IE workers.

Economic variables and lack of access to finance: The lack of access to finance

and credit, and the fact that only 4% of IE workers receive informal cash

transfers from family, means that it is hard for IE workers to start and maintain

livelihoods ventures, particularly in times of economic shock.

Eid noted that since 90% of the economy of Somaliland depended on the informal sector,

it needs to be supported and made a target for improvement. He suggested that Informal

Sector Policy was needed. The report also identified several key protections that could

alleviate the challenges and problems identified above. These include:

Policy inclusion to genuinely support and empower IE workers and their

businesses. Small-scale enterprise enabling actions could begin to aid IE workers

overcome some of the challenges identified above.

Support for associations: Enabling workers to organize into associations, trades

unions or co-operatives can be important in providing a platform for IE workers

to articulate and negotiate their needs, establish rights, and address conflicts in the

urban context. Savings and credit associations and financial co-operatives can be

important sources of savings and credit. Currently only 7% of current IE works

part of a trade union or informal association, and there is no co-operative

legislation in the country.

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Increased literacy and business training: Increased literacy and business

training could address some of the difficulties of lack of formal education faced

by some members of the IE. A focus on women would help the most vulnerable

groups. However, training sessions should be affordable and timed so that people

can combine training with income earning. Some training is provided by NGOs,

but none of the current IE workers interviewed had engaged with NGOs,

increased training opportunities are needed.

Improved infrastructure and operating spaces: Despite over 90% of current IE

workers paying daily fees to the municipality, there is virtually no infrastructure

of provision for IE businesses, and trading space can be inadequate, congested

and dangerous. Better trading space provision would not only protect IE workers

and increase resilience but would encourage business growth and development.

Recommendations from the report

A number of recommendations are identified in the report including: need to increase

national legitimacy and recognition; need to strengthen voice and participation; need to

plan locally for the informal economy; need to support vulnerable informal economy

workers; and importance of providing lessons for international agendas and humanitarian

assistance.

4.0 QUESTIONS & COMMENTS

The meeting was participatory and the following additional feedback was received during

the question and answer session.

Comment by Michael Poulsen, Danida Representative and ESCOM Co-

Chair: it is important to ensure that NDP2 is followed-up and sectors provide

missing data as well as inclusive plans. Institutions should focus on a broad range

of issues and meetings need to be urgently convened so as to finalize sector

consultations. He also acknowledged the strong support provided by the Ministry

of Planning in terms of effective coordination. Regarding the legal framework, he

indicated that laws take a very long time to enact. What is important is to focus on

the most important bills so as to pass them. Michael noted that in order to

overcome challenges, it is challenges it is important to have a mechanism for

effective advocacy and lobbying. He added that presentations so far received have

tended to focus on public institutions, ministry based priorities. The intention for

the NDP2 is to move away from that and focus on different institutions, broaden

analysis and prioritise cross-cutting issues.

Comment by Eid Ali Ahmed: He mentioned that it’s very important for

government to include informal economy in its planning process. According to the World Bank the informal economy employs around 77% of Hargeisa city

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workforce. He mentioned that he and his team had met a cross section of senior

government personalities and other stakeholders to discuss the report including:

the Vice President of Somaliland, H.E. Abdirahman Abdillah Ismail, Hargeisa

local government officials and UN agencies such UN Habitant, UNICEF and

ILO.

Comment by Mohamed Barawani of SONSAF: He noted that the informal

economy is very important because it provides tax and revenue to the local

government and it provides livelihood to many citizens hence the need for the IE to be covered by NDP2. He also called for creation of sector associations such as

an umbrella for milk sellers, meat, and others. The sectors also needs a lot of

micro-credit to spur economic growth and development

Comment by Mohamed Awale: He expressed the view that it would be

important for the Government to support the local economy and further determine

whether or not the joint program on local governance (JPLG) and the municipality

can mobilize resources for this purpose. He promised to provide feedback to

participants during the next ESCOM.

Question by Dr. Abdi Osman from DAI: He wanted to establish the criteria Mr.

Eid Ahmed used to distinguish between formal and informal sector?

Question by Mohamud Hasan from Somaliland Chamber: He asked Mr. Eid

Ahmed whether this research will be conducted widely in other cities of

Somaliland

Feedback by Mr. Eid Ahmed: Regarding the criteria used to distinguish

between formal and informal businesses, it depended on the type of business they

were involved in. if they are vendors on the street then they are not registered as

businesses and only pay a small amount of money to the local government. Those

with no suppliers and no stores to mention a few are categorized as part of the

informal economy. Finally, with funding, this research will be widely prototyped

across Somaliland.

Comment by Mustafa Ahmed from Civil Service Institute: He noted that

informal business were affected by lack of refrigerators because most traded in

perishable commodities such as sale of fish, meat and vegetables. He also further

mentioned that some of the conditions of these products are unhygienic like meat

and fruits.

Comment by Adam Ismail from Hanvard: He mentioned that the study was

conducted in Hargeisa and it’s a micro concept which will cover other cities in

Somaliland if funding is available. He agreed that the research showed that

infrastructure was a challenge. He further mentioned that there was no

refrigeration for example to help fishing companies bring their catches to the

market and improve the value chain. Subsequently, there is need for a policy to

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assist promote the sector and improve the working condition and to achieve this,

there is need for a holistic approach

Question by AbdiKarim Gole: He inquired whether NDP2 will consider the

informal sector a different sector on its own.

Feedback by Guilherme Suedekum: He said that the decision doesn’t lie with

the NDP2 formulation team. He emphasized that the research on informal

economy will be included while formulating NDP2. He also encouraged the

private sector, civil society and all stakeholder to share information so that NDP2

is more inclusive.

Comment by Mohamed Awale: The Government was to lead some sectors with

private sector co-leading like Shurakoo on finance, SONSAF co-leads on others

sectors. Subsectors are also in place and Eid Ahmed may be a champion on

informal Economy.

Feedback by Eid Ahmed: He said there is a prospect for future research. They

will hold a conference in Cardiff in April or May on informal sector findings. He

mentioned that the policy targeting the informal sector is not a stand-alone policy

but having commonality with other policies.

Comment by Mustafa Mohamed Lawyer for Ministry of Trade: He

mentioned that laws and policies that support informal economy are needed to

assist in growth and development of the sector. He further mentioned that the

World Bank has conducted several studies and recommends laws that support informal economy.

Comment by Adamn Ismail from Hanvard: Highlighted need to address policy

and legislative gaps that inform informality. Key policies, legislation and other

required interventions include: Formulation of SME Policy, Trade policy,

Investment policy, Private sector policy, Set up of one stop shop, Foreign

investment Act – SONSAF to support validation workshop, Company Act needs

to be enacted and Doing Business reforms are also urgently required.

5.0 CLOSING REMARKS BY ESCOM CO-CHAIR

In his closing remarks, Mr. Mohamed Awale thanked all participants for their active

contribution to the ESCOM agenda. He reiterated the critical importance of stakeholder

dialogue on key issues that impact Somaliland’s private sector development. He further

encouraged presentation of evidence based research findings at ESCOM meetings

especially focusing on topics critical to the growth and development of the economy. He

cited the presentation on the informal sector in a post war setting as a good example of

evidence based research that will positively impact policy. He thereafter closed the

meeting. The next ESCOM Meeting will be convened on 19th April 2017

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6.0 ESCOM RECOMMENDATIONS

Issue Detailed requirements

Improve tax legislation,

systems and procedures

There is need to enact relevant customs and in-land

revenue legislation and to upgrade tax systems and

procedures

Develop human resources and upgrade skills

Strengthen financial

institutions and

regulation by the

Central Bank

The Somaliland Central Bank needs to strengthen its

rules and regulations

There is need to strengthen financial institutions in

order to facilitate the Country’s economic

development

Improve market

opportunities and focus

on value addition

There is need to improve internal and external market

opportunities, especially targeting neighbouring

Establish value addition industries for livestock

related sectors and strengthen the productive sector

Strengthen

industrialization and

PPP initiatives

Foster and encourage industrialisation in key sectors

including fishing, livestock and mining

Establish and support Public Private Partnership

(PPP) initiatives

Improve management

of National Fuel

Stations

Revisit management of national fuel stations to

ensure a more efficient and effective approach

Reduce red tape and

bureaucracy

Ministry of Trade and Investment should endeavor to

reduce red tape and bureaucratic procedures delaying

business startups and investments

Address access to

finance challenges

Revisit issue of Commercial Banking Law in order

to enable conventional banking in Somaliland

Improve government –

private sector

communication

There need to further improve communication

between Government and the private sector

Prioritize gender issues Gender has not been targeted as an important issue.

Specific challenges for women in business need to be

addressed.

Recognize private

sector and remove

obstacles to private

sector development

Private sector needs to be recognized as a critical

cross cutting sector and a full-time partner of

Government for the development of the country.

Government still needs to learn how to create the

right incentives – which are not necessarily tax

incentives – and remove obstacles to engage with the

private sector.

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APPENDIX 1: ATTENDANCE LIST

Name Organization Phone Email

1. Ismail Idiris Iman Bank Of Somaliland 0633434645 caamir.ismail@gmail.com

2. Guilherme Suedekum MNP&D 0633819800 Slmnpd.suekekum@gmail.com

3. Dr. Hibaq Bubal Private Sector 0634777004 Dr-hebaq@hotmail.com

4. Ahmed Adam Jama Chamber Of Commerce 0634473133 ahmedaden@gmail.com

5. Abdifatah Omar Ministry Energy &

Minerals

06344187118 a.fatahoa@gmail.com

6. Mohamed M. Awale Ministry Of Trade &

Investment

0634240083 mawale@somalilandinvest.net

7. Abdikarim Jirde Gole Shuraako 0616968684 agole@shuraako.org

8. Abdirashid Husein

Mohamed

Chamber Of Commerce 0634782244 Abdirashid.hussein55@gmail.co

m

9. Mustafe Ahmed Civil Service Institute 0634478830 Mustafe20@gmail.com

10. Mohamed Ahmed SONSAF 0634414335 Sonsafed@gmail.com

11. Ahmed Adam Ibrahim Ministry Of Industries 063-4249068 ahmed_8666@hotmail.com

12. Khadar Ali Osman Ministry Of Finance 063421108 Xaraaro30@gmail.com

13. Hamse A.khadir Husein

Ministry Of Finance 0634417264 xamsesamane@gmail.com

14. DR Abdirisaq Yousuf SL Medical

Association

0634428945 Axdar1@hotmail.com

15. Hassan Abdinasir

Omar

Golis University 0634420483 xassandalmar@gmail.com

16. Abdirisaq M. warsame Dai-PIMS 0634360040 Busmanabdi12@hotmail.com

17. Barkhad A. Hassan Ministry Of Trade &

Investment

0634049415 barckad@gmail.com

18. Mustafe Mohamed

Daahir

MOTI 0634477622 mmdahir@gmail.com

19. Hamda Sheikh Ahmed

Sheikh Ali

Ministry of Trade &

Investment

0634675925 idililkacas@live.com

20. Saed Mohamed Jama Ministry of Trade &

Investment

0634412545 Siciid5505@hotmail.com

21. Mukhtar Mustafa

Hashi

MOT 0634064674 Moctar_hashi@gmail.com

22. Abdirahman

Musabaqo

Bank Somaliland 0634429137 Musaabaqo2gmail.com

23. Abdirsak Mohamed M OF Minerals 0634247989 Robleh07@hotmail.com

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Name Organization Phone Email

abdi

24. Abdikarim Mohamed

Omar

MONPD 0634479178 Dalmar05@hotmail.com

25. Mohamoud Hassan

Said

Chamber Of Commerce 063388916 Mohamudhasan909@gmail.com

26. Dr. Abdi Osman Haji

Abdi

Dai-PIMS 0634437029 Abdi_osman@dai.com

27. Waliid yousuf Ahmed Ministry of Justice 0634242664 waliid@legislator.com

28. Abdihakim Mahdi Aden

Ministry Of Trade & Investment

0634474315 haajimahdi@gmail.com

29. Abdifatah Abdilahi

Jirde

0633674466 Abjirreh416@gmail.com

30. Richard Susan sills Darlington Foundation 0633295962 sillsbures@hotmail.co.uk

31. Eid Ali Ahmed Consultant 0633295962 Eid_consultancy@yahoo.co.uk

32. Mohamed Abdiwahab Consultant 0634424244 Kadar_a@hotmail.com

33. Yaasiin Nuur Mooge Telesom Company 0634220493 Presidentyasin@hotmail.com

34. Mohamed Ahmed African Business Wire 0634456640 africanbusinesswire@gmail.com

35. Abdirisak Shaafi

Mohamed

Ministry Of Justice 0634243303 Shaafi202@gmail.com

36. Ali Farah Jama Ministry of Trade & Investment

0634477132 ajama@somalilandtrade.net

37. Michael Poulsen Danida 0634000437 micpou@um.uk

38. Adam Ismail Hanvard/IFC 0634411095 adam.ismail@hanvard.com

39. Ahmed Mohamed

Nuur

Deputy Minister of

Trade

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20 | P a g e

APPENDIX 2: AGENDA OF ESCOM MEETING, 22nd January 2017

ECONOMIC SECTOR COORDINATION

MEETING (ESCOM)

Maansoor Hotel, Hargeisa, Sunday 22nd

January 2017

AGENDA TIME ACTIVITY EXPECTED OUTCOMES

8:30 – 9:00 REGISTRATION

Welcome remarks by ESCOM Chairman:

9:00 – 9:10

Mohamed Awale (MoTI): Director of Planning

9:10 – 9:30 Official opening by Minister of Trade and Word from the Minister of Trade on

Investment: Hon. Omar Shuaib Mohamed how his Ministry committed to

supporting the ESCOM in line with

the Ministry vision.

9:30 – 9:40 Review and confirmation of minutes of the Progress achieved in implementing

previous ESCOM meeting: Chairman – Mohamed

agreed recommendations during last

Awale. extra-ordinary ESCOM.

9:40 – 9:45 Remarks the co-chair: Michael Poulsen – DANIDA Perspective of donors in the NDP2 representative. preparation and how it could assist

sub-sectors and increase ownership

of the planning process.

9:45– 10:30 Presentations from 4 sub-sectors: Update participants on the NDP2

1. Finance: Hamse Abdikadir Husein (MoF) economic sector analysis (4 sub-

2. Industry: Ahmed Adem Ibraahim (MoI) sectors) in terms of the priorities

3. Trade & Investment: Khadar Abdiwahab (MoTI)

4. Private Sector: Abdirashid Hussein (Chamber)

10:30 – 10:45 COFFE AND TEA BREAK

10:45 – 11:35 Other Presenters: Update participants on various

1. Mr. Eid Ahmed: Cardiff University (Post Conflict

activities that are relevant to the

Economic Recovery and Urban Informal Economy of work of the economic sector and Hargeisa City). could enhance join-work and

2. Dr. Abdi Baashe: PIMS program overview. partnership.

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3. Mustafa Dahir: legal framework initiatives.

4. Mubarak Abdillahi: NDP2 Analysis & future steps

(MoP).

5. Abdulkadir Hashi: Overview of PPP programs.

11:35 – 12:10 Comments and Questions session Enable participants to make

comments and to ask questions on

the issues presented.

12:10 – 12:20 Items for the next ESCOM (Proposals) & closing Items for the next ESCOM

remarks

12:30 LUNCH