Private sector investment could help leather production thrive in Somalia
01/12/2017
On the pages of the World Bank’s special website for stories from the developing world, Nasikiliza, blogger Mohamed Maqadin said things are changing for the better in Somalia, with government institutions becoming stronger. But he said youth unemployment remains a huge problem and said creating job opportunities for young people in Somalia needs to be a priority.
He suggested that manufacturing jobs offer the best possibilities because, he bemoaned, most consumer goods in Somalia are imported . “Production businesses are scarce in Somalia,” he said. “Almost all the commodities used in the country are imported, including most of the processed food. Goods that could easily be manufactured locally are imported. Many of these commodities could be produced and processed [in Somalia], and create thousands of jobs for young people.”
He argued that manufacturing businesses would establish small-scale factories, use local raw materials, create jobs and produce cheaper goods for local consumption.
“For example, Somalia’s main export is livestock,” Mr Maqadin continued. “Processing hides to produce leather domestically would create more jobs and revenue, and slash prices for Somali consumers. A similar argument can be made for shoes, which are often made of leather and produced elsewhere.”
He said the private sector can play a big role in helping entrepreneurs to set these operations up. “The Somali private sector is vibrant,” he said, “and is able to invest in job-creation in ways the government is currently unable to.”
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