Agricultural farm in Somalia.
Somalia is an African nation situated on the
continent's eastern edge. The Somali economy is considered to be one of the
least developed on the continent which is mainly attributed to the violence in
the country. The violence in Somalia has made it difficult for international
financial organizations to get accurate economic statistics from the country.
However, the World Bank estimated that in 2018, the Somali gross domestic
product was approximately $6.2 billion which was a 3.1% increase from the 2017
gross domestic product. The Somali economy is reliant on several industries
such as agriculture, construction, mining, and telecommunication.
Agriculture
One of the most critical industries in Somalia
is agriculture which employes more than 65% of the country's labor force. Like
most sectors of the Somali economy, agriculture was significantly affected by
the violence that rocked the country. In 2013, the agricultural industry
contributed more than 60% of the country's gross domestic product. Farming in
Somalia mainly takes place in the country's southern section in areas such as
Hiran, Lower Juba, and Gedo that are considered to be the country's most
fertile areas. The southern section of Somalia is home to several rivers such
as the Juba and Shabelle that make the region more conducive to farming. Some
of the crops that Somali farmers grow include sugarcane and bananas, which are
sold to other nations, while maize (corn) and sorghum which are mainly grown for
local consumption. Despite the presence of a vibrant agricultural industry in
Somalia, the country is forced to import most of the food that the citizens
consume. To improve the Somali agricultural sector, local farmers partnered
with the World Food Program to sell cereals to the organization. Businesspeople
in Somalia pledged to help farmers improve the country's agriculture industry.
Livestock keeping
Since ancient times, pastoralism has been one
of Somalia's most vital industries. According to the Somali government, more
than 80% of the Somali people were involved in pastoralism, and they kept
animals such as sheep, camel, cattle, and goats. Most of Somalia's pastoralists
move across the country in search of pasture and water for their animals. Apart
from keeping animals, some of the pastoralists also gather gums and resins to
increase their income. Some unique livestock breeds have been developed in the
country such as the Somali sheep and the Somali goat. The Somali goat is mainly
kept because it thrives in dry areas. The variety is kept for both meat and
milk, and it can produce more than 6.6 pounds of milk during dry seasons. The
Somali sheep, on the other hand, is mainly kept for meat. The sheep are also
exported to other nations primarily those in the Arabian Peninsula. Apart from
sheep, Somali herders also export cattle and camels to countries in the Arabian
Peninsula. Some of the countries in the Arabian Peninsula have chosen to invest
in Somalia's pastoralism industry to grow the sector.
Fishing
The fishing sector is one of Somalia's most
important industries mainly because the country has an exceptionally long
coastline. Before 1991, Somalia had several important fishing centers mainly
located along the country's coast. During this period, some of the fish species
that were often caught included tuna and lobster. Somalia's significant fish
reserves attracted investment from other nations mainly those in Europe and
Asia. The violence that rocked Somalia significantly affected the country's
fishing industry as it discouraged investment in the sector. In the 21st
century, the Somali government has attempted to work with the local communities
to reestablish the country's fishing sector. In 2012, as part of the efforts to
reestablish the country's fishing industry, engineers were employed to assess
the renovations at one of the country's most important fishing ports, Las
Khorey. The government of the UK assisted in the construction of a fish market
at Garowe. Another measure that the Somali government took to improve the
fishing sector was opening training schools for fishers.
Mining
Another sector essential to the Somali economy
is the mining industry with some of the country's most important minerals being
gemstones and salt. Somalia also has limited deposits of other significant
minerals such as uranium, tin, and gold. Before 1991, the Somali government was
in charge of granting mining rights to companies, however, after the government
collapsed, it was difficult for companies to get rights to mine in the country
legally. The collapse of the Somali government made it difficult to get
accurate data from the country's mining industry. Some of the countries that
have been granted the right to mine in Somalia include the East African Mining
Corporation and Range Resources Limited from Australia. Industry experts
believe that the Somali mining sector has the potential to be one of the
country's most important industries.
Telecommunication
The telecommunication industry is one of
Somalia's most important sectors. Most of Somalia's telecommunication
infrastructure was destroyed during the fighting that took place during the
1991 civil war. By 2010, Somalia's telecommunication industry had experienced
resurgence mainly as a result of companies setting up the country's missing
infrastructure. Somalia's telecommunication industry attracted investment from
foreign nations such as South Korea and China. The telecommunication companies
allow the Somali people to bank and send money using their phones. The mobile
money system is one of the most vital systems in Somalia as it allows people to
pay for services without having to carry large sums of money. The most
significant challenge facing the Somali telecommunication industry is the
insecurity that plagues the country.
Tourism
Somalia has been blessed with a variety of
beautiful sites that attract significant numbers of tourists to the country.
The beaches of Somalia are some of its most important tourist attraction sites
with the most famous one being the Gezira Beach in Mogadishu and the Baathela
Beach in Berbera. The violence in Somalia has dramatically affected the
country's tourism industry as it has discouraged tourists from visiting the
country.
The Somali economy
The economy of Somalia has been severly
affected by the violence that plagued the country. Despite the violence,
Somalia has managed to maintain a vibrant informal sector. Various financial
experts believe that if Somalia became peaceful, the country's economy would
grow exponentially.
Source.www.worldatlas.com
