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• GDP: US$4.8 billion (2005).
• Main exports: Livestock, bananas, hides, fish, charcoal and scrap metal.
• Main imports: Food grains, animal and vegetable oils, petroleum products, construction materials and manufactured products.
• Main trade partners: Yemen and United Arab Emirates.
• Main exports: Livestock, bananas, hides, fish, charcoal and scrap metal.
• Main imports: Food grains, animal and vegetable oils, petroleum products, construction materials and manufactured products.
• Main trade partners: Yemen and United Arab Emirates.
Economy
Somalia’s economy has been seriously dislocated by years of fighting and political strife, as well as a severe long-term drought which has affected the whole of East Africa. Somalia now ranks among the poorest countries in the world.
Subsistence agriculture and livestock rearing occupy most of the working population, although development is hampered by primitive techniques, poor soil and climatic conditions, and a chronic labour shortage. Bananas are the main cash crop and provide nearly half the country’s export earnings; cotton, maize, sorghum and other crops are produced for domestic consumption. Animal products, particularly hides and skins, are another key source of revenue, mainly from Saudi Arabia.
Fishing has dwindled to the level of individual small boats, but there are provisional plans to restore this to full commercial capacity. Oil and gas deposits have been located but their exploitation has been in abeyance due to the lack of an effective central government. There is little industry other than small-scale operations to meet domestic needs, mainly food-processing and oil refining.
Most economic assets remain in the unstable hands of clan-based militias, with frequent competition for control of particular industries.
Over half the population relies on remittances from abroad as well as large injections of foreign aid, especially from the various United Nations relief organisations. These were disrupted by the closure in 2002 (at the behest of the US government, which claimed links to terrorism) of the al-Barakat finance company which processed a large number of overseas payments; the company also had major interests in other parts of the economy, especially banking and telecommunications.
Somalia is burdened by a huge foreign debt and its traditional trade relationships have largely been suspended due to payment problems.
Subsistence agriculture and livestock rearing occupy most of the working population, although development is hampered by primitive techniques, poor soil and climatic conditions, and a chronic labour shortage. Bananas are the main cash crop and provide nearly half the country’s export earnings; cotton, maize, sorghum and other crops are produced for domestic consumption. Animal products, particularly hides and skins, are another key source of revenue, mainly from Saudi Arabia.
Fishing has dwindled to the level of individual small boats, but there are provisional plans to restore this to full commercial capacity. Oil and gas deposits have been located but their exploitation has been in abeyance due to the lack of an effective central government. There is little industry other than small-scale operations to meet domestic needs, mainly food-processing and oil refining.
Most economic assets remain in the unstable hands of clan-based militias, with frequent competition for control of particular industries.
Over half the population relies on remittances from abroad as well as large injections of foreign aid, especially from the various United Nations relief organisations. These were disrupted by the closure in 2002 (at the behest of the US government, which claimed links to terrorism) of the al-Barakat finance company which processed a large number of overseas payments; the company also had major interests in other parts of the economy, especially banking and telecommunications.
Somalia is burdened by a huge foreign debt and its traditional trade relationships have largely been suspended due to payment problems.
Business Etiquette
Wear lightweight suits without a tie in hot weather. The best time to visit is October to May.
Office hours: Sat-Thurs 0800-1400.
Office hours: Sat-Thurs 0800-1400.
Business Contacts
The Chamber of Commerce, Industry and Agriculture in Mogadishu is presently closed due to continued civil unrest.
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