Ministry of National Planning Development Republic of Somaliland
Ministry of National Planning & Development Republic of Somaliland SOMALILAND ECONOMIC OUTLOOK & FINANCIAL SECTOR Hon. Minister Dr. Saad Ali Shire Minister for National Planning & Development Republic of Somaliland 14 October, 2014
GEOGRAPHY • Location: Horn of Africa; • Position: 08° 00' – 11° 30' north and between 42° 30' – 49° 00‘ east • Borders: Djibouti to the west, Ethiopia to the south, and Somalia to the East. • Area: 137, 600 km sq. UK-Somaliland Trade & Investment Forum 14 October 2014 2
POLITICS • • System: Presidential Seat: Hargeisa (the capital) Parliament: Two houses Judiciary: Independent Political parties: Three Elections: 2002, 2003, 2005, 2010, 2012 Stability: 17 years unbroken UK-Somaliland Trade & Investment Forum 14 October 2014 3
PEOPLE Population: 3. 5 - 4. 0 Million Age structure: 70% below 30 years Student population: 250, 000 University graduates: 4 -5, 000/year Indigenous Language: One (Somali) Spoken languages: Somali, English, Arabic • Culture: Homogenous • • • UK-Somaliland Trade & Investment Forum 14 October 2014 4
VISION AND STRATEGY • • Vision: 2030 Vision National Plan: 2012 -2014 NDP Regional Plans: 2014 -2016 Somaliland Special Arrangement: 2014 -2016 UK-Somaliland Trade & Investment Forum 14 October 2014 5
REFORMS UNDERWAY • • Public finance Civil service Justice Private sector UK-Somaliland Trade & Investment Forum 14 October 2014 6
MACRO-ECONOMY • GDP: $1. 4 Billion USD (WB) • Growth: Significant – lead by construction and services • Currency: Stable – unofficially pegged to the US Dollar. Mostly SLS 6 -7, 000/$ in the last 8 years • Inflation: 2% 1 st 6 months 2014 UK-Somaliland Trade & Investment Forum 14 October 2014 7
TRADE • Livestock exports 1 st six months 2014: 1, 076, 017 • Increase of over last year same period: 14% • Imports 1 st six months 2014: • 494, 695 tons • Increase over last year same period: 23% UK-Somaliland Trade & Investment Forum 14 October 2014 8
FINANCIAL STABILITY • • Government Budget: US$200 million 2014 Fiscal Deficit: None Public debt: Negligible (outstanding bills) Foreign debt: None (since 1991) Trade deficit: None Foreign exchange control: None Restrictions on moving currency: None UK-Somaliland Trade & Investment Forum 14 October 2014 9
TAX REGIME • • • Corporation tax: 10% Income tax: 6% (flat) Sales tax: 5% Tax holiday for investors: 3 years Tax exempt: Machinery and material for investment UK-Somaliland Trade & Investment Forum 14 October 2014 10
FINANCIAL SECTOR • Banks: Central Bank, Dahabshiil, Salaama • Mobile Banking: Zaad • Remittance companies: >12 more • Gaps: Banking, mortgaging, insurance, UK-Somaliland Trade & Investment Forum 14 October 2014 11
INTERNATIONAL LINKS/CONNECTIVITY Berbera Port: 650 m quay, 5 berths Gate way: Ethiopia, South Sudan (100 million) Berbera Airport: 4. 1 Km runway Hargeisa Airport: 2. 4 Km (under extension) Airlines: Ethiopian (daily), East African express, Juba, Daallo • Mobile coverage: National • Internet: Available and Reliable • Fiber Optic: Network ready to start soon • • • 12
POTENTIAL INVESTMENT • • Renewable energy: Solar, Wind, Geothermal Hydrocarbons: Oil, gas Minerals: Industrial, rare, gems Finance: Banking, insurance, investment Agriculture: Livestock, fisheries, Dairy, poultry Health: Hospitals, manufacturing Construction: Housing, offices, industrial estates Infrastructure: Ports, Airports, roads, utilities UK-Somaliland Trade & Investment Forum 14 October 2014 13
INVESTOR CONFIDENCE • Current investors present or represented: – Baoding Jeronimo Group of Industries, – Coca Cola, – Western Union, – BCIMR, – Nubian Gold. – Genel Energy, – DNO • Visiting investors in 2014: > 70 UK-Somaliland Trade & Investment Forum 14 October 2014 14
- Slides: 14