Somalia Industry Sectors

April 9, 2010Somaliaby EconomyWatch Content


 The growth of Somalia industry sectors has been weak due to the civil strife in the nation, which has also left the nation without a central governing authority. Lack of adequate resources has also weighed in on Somalia’s industry sector; wherein most of Somalia’s limited mineral resource, particularly uranium and iron ore, remains unexploited. 

Somalia industry sectors, despite several adversities, have managed to grow marginally, particularly because of remittances by Somalian nationals living abroad. Such nationals have helped in establishing small, informal industrial units in the nation, including textiles, handicrafts, printing and meat processing.


Sudan Industry Sectors: Major Contributors 

Most of the nation’s small industry sector is based on agricultural processing, which includes meat canning, sugar refining, oilseed processing and leather tanning. Also, despite being one of the poorest nations in Africa, Somalia has a superior infrastructure as compared to several of its counterparts. This has attracted private investment on a large scale in Somalia industry sectors. As a result, the following industries have thrived in the Somalian economy:


Telecommunications Industry


Somalia telecommunications industry is one of the best in Africa, with the cheapest cellular call rates in the continent. Besides, the installation time for a fixed-line is just three days. This period in some African nations may go up to several years. The first telecom companies began their operations in the nation in 1991. New entrants joined soon after by partnering with international giants, such as ITT, Sprint and Telenor. This resulted in increased competition in the industry, as a result international call charges have dropped to as low as $0.50 per minute in the larger cities.


Mineral Industry


The Somalian mineral industry produces small volumes of gemstones and salt. Iron ore, uranium, limestone and natural gas are other key produce of the industry. Somalia’s mineral industry has been subject to conflicts since the nation’s central government collapsed in 1991, leading to ambiguity about the ownership of mineral rights. These rights for the region of Somaliland, located in northern Somalia are under the East African Mining Corp. Ltd.


Manufacturing Industry


Most of Somalia’s manufacturing industry consists of small, informal units. However, Somalia does have several large-scale manufacturing enterprises, particularly for milk and sugar processing. The load of civil war and political instability also spilled over to the manufacturing industry, which ceased to play an important role in Somalia’s economy. Currently, the industry accounts for less than 5% of Somalia’s total GDP.

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