As a sole economy and efficiency related reform package our Agenda 2022 consists of several concrete measures to enhance Somaliland’s economy.
These measures aim to boost business development and spark internal as well as external growth. They shall ease the doing of business, both administrative as well as economically, lower the entry barriers for Foreign Direct Investment and offer solutions for known problems such as high electricity prices.
The PMO is directly responsible and reporting to the president’s office. It is a finite entity whose sole purpose is the management and supervision of the reform processes. It has to make sure no unnecessary delays are hindering development. Also, it might comprise the provision of interim management teams.
The PMO will set up the initial structures in consideration of the respective other entities, such as ministries and institutions. It is also responsible for the compliance with defined standards and best practices.
- the establishment of the „Somaliland Land Registry“
- the establishment of „Public Notaries“
- the establishment of the „National Land Bank“
- the establishment of the „Land & City Development Institute“
- The most important benefit is the possibility of using the property as a collateral. For the first time in the history of Somaliland, people can receive loans from the National Land Bank by using their home or property as collateral.
- Further a proper taxation is possible. Property taxes will be based on the size and the value of the property, not on estimation or relationships.
- Increased investment safety which will increase Foreign Direct Investment
- Reduces costs for the judiciary related to land disputes
Benefits in numbers
- Capital injection by awaking the sleeping capital in the properties by offering them as collateral:
- Approx. 750 Mio. $ in Hargeisa in the long term
- Increased tax revenue through proper taxation:
- +20 Mio. $ (short term / within 3 years), up to +150 Mio. $ (long term / within 10 years) for Hargeisa only
- the establishment of the „Somaliland Investment Authority FZE“ in Dubai
- the establishment of branches in countries that are important trade partners of Somaliland
- Through SIA the Government of Somaliland will finally be able to directly interact with foreign companies and institutions on a firm legal basis.
- The Government of Somaliland will be able to create passive income streams that are independent from local tax revenues by building a portfolio of interests in foreign assets (and leverage through loans) and therefore can make sure there will always be money to foster local development and enough foreign currency.
- In the longer term, the Government will have a vehicle through which it can issue bonds and thus collect money for the development of Somaliland.
Benefits in numbers
- The establishment of SIA will reduce the required time for governmental financial transactions by more than 50% and increase its agility to interact with foreign companies by 500%
We will identify several strategic locations for business and industrial parks that are strategically located for their respective purpose (e.g. logistics and warehousing, ITC, office etc.) and will develop the land. The plots will vary in land area but will all be ready for building with water and electricity connections.
We will offer companies two options: to either rent a bespoke building or buy the land and build on their own. In either way, the business parks will offer a working infrastructure to operate a broad range of businesses.
Regional power hubs have to be developed in the most favorable locations. Here it is clearly an advantage that there is no status quo that has to be considered and that planning and development can be done from scratch on, be it smart grid technologies or else.
The visionary goal is a power corridor from Hargeisa to Berbera, with RE power plants along the Berbera corridor, with the eventual goal of connecting all plants in the future. The ultimate goal would be the power provision for a major sea water desalination plant at the sea, which is capable of supplying all cities and regions of Somaliland with fresh water.
Construction and maintenance of energy infrastructure is expensive and does not have a direct impact on the governmental income. However, it is the long term that will bear the fruits, since cheaper electricity will enable businesses and increase purchase power of individuals.
Since Somaliland is blessed with perfect conditions for renewable energies, especially solar and wind, it is very much advisable to invest into the development of a favorable framework for those technologies.