Opportunities

Opportunities (9)

Monday, 16 August 2021 11:09

Opportunities

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INVESTMENT POTENTIALS OF THE SOMALI REGION

Agriculture

Crop production potential

The region has four major rivers, Wabi Shebelle, Genale, Dawa and Weyib which carry large amount of water throughout the year.  The region has also high underground water potential.

Sorghum and maize are the two staple food crops invariably cultivated by all farmers in the region, whether lowland or highland.  Other lowland crops such as sesame, groundnut, cotton and fruits like papaya, mango and some citrus are grown in scattered manner. Highland crops such as millet, teff, wheat and barley are cultivated along with some highland fruits by highland farmers in some parts of Jigjiga, Shinile, Liben and Afder zones.

About 70% of the rural population of the Somali Region are predominately pastoralists.  The remaining rural population are agro-pastoralist (18%) practicing both livestock rearing and crop production, and pure crop producers (12%) depending on the production of the different crops.

The agro-climatic condition of the region allow diversifying agricultural products by growing a variety of food crops that are adaptable to the agro-ecological zones of the region either under irrigation or rain fed. However, the large tract of cultivable area of which very small is currently under cultivation. The major crops that can be grown in the region include the following:-

  • Cereal crops (maize, sorghum, millet and wheat),

  • Oil crops (groundnut, sesame & castor oil),

  • Pulses (pigeon pea, chick pea and mung bean),

  • Industrial crops (cotton, sugar cane, tobacco, sisal and kenaf),

  • Vegetables and fruits (green bean, sweet potato, muskmelon, asparagus, banana, papaya and grapes),

  • Flowers,

  • Insecticide plants,

  • Agro forestry

Livestock, apiculture and fish resources

Livestock is a very important and critically required resource for the well being of the Somali society. The main species reared in the region include cattle, sheep, goats, equine and camels.  There are three district types of livestock production system based on the prevailing climatic conditions of the rangeland in the region. These are crop based mixed farming system, livestock based mixed farming system and pastoralist.

There is no reliable data on the livestock population of the region.  According to the estimate made by the socio-economic survey conducted in the region by IPS, the total population of livestock in the region is about 6,874,000 TLU, out of which cattle constitute about 44%, camel (30%), sheep (13%), goats (12%).  The average density of cattle per km2 of total area is about 11.7 which ranges from 4.9/km2 in Warder zone to 22.4/km2 in Jigjiga zone.

Cattle are the most important livestock species in the region by their dual product of milk and meat.  Small ruminants are the next most important animals that produce food and generate income.  Camels play significant role as a source of milk, meat and cash reserves.

Livestock mortality rate is very high owing to such factors as shortage of feed and water during the dry and drought periods, diseases, plant poisoning etc.

The prime feed resource available to the livestock in the region is natural vegetation.  The contribution of crop residues and aftermath grazing of cropped lands are negligible.  The overall sources of feed are not sufficient to support the livestock population found in the region at least during parts of the dry season.

Fishery is almost forgotten sub-sector in the region although rivers like Wabi Shebelle, Weyib and Dawa are expected to have huge fish potential.

Forest resources

The Somali Region is endowed with natural resources including bio-diversity which is rich in species of plants and animals. Of the entire flora in Ethiopia, 25% are represented in the region and 18% of these are endemic to the region and 135 plant families, 626 genera and species of plants are recorded in the region.  There are also a number of mammals, birds, reptiles, amphibians which are adapted to the arid and semi-arid conditions of the region.

The region is known to have the potential for natural gum and incense yielding tree species that are dominant in Liben, Fiq and Afder zones as well as Gode and Korahe zones.  The wild animals which are known to exist in the region include lion, hyena, leopard, fox, hunting dog, crocodile, oryx, zebra, baboon, giraffe ostrich, hippopotamus, monkey and a variety of birds.

The main climax vegetation classes in the region are:-

  • Acacia - bussel open woodland,

  • Accacia - commiphora bushland,

  • Ever-green/semi-ever-green scrubland,

  • Semi-desert Acacia bussel scrab land, and

  • Riparian forests.

Presently the forest resources of the region are used as fodder for livestock, source of bio-fuels, construction materials, traditional medicines and source of natural gum, incense and myrrh.

Despite their importance for local economies and the livelihood of the people, the forest resources of the region are neglected.

Agricultural Marketing

Marketing of agricultural products is analyzed by considering the situation in each zone of the region.  Marketing of various agricultural products such as grains, live animals, hides and skins, honey, fruits and vegetables, forest products are practiced in the region to a varying degree.  Observation of the data collected on prices of the products revealed the existence of price fluctuation.

Factors such as food availability situation in the neighbouring Somalia Republic, and distribution of relief food at the refugee centers have significant impact on the supply and prices of grain in the area.

With respect to livestock marketing, most of livestock marketing is through smuggling. Absence of resting places, the poor communication system coupled with lack of trucks to transport the live animals is the major constraints to live animal trade.  With respect to other agricultural products, the export market to the neighbouring countries is not yet exploited and hence expansion of the various agricultural commodities cannot be hampered by lack of marketing outlet in the future.

As far as grain marketing is concerned, the Somali Region is not surplus producing and consequently possibility of its supplying grain to other regions is very remote at the moment.  However, to encourage flow of grain into the region, an enabling environment should be created to encourage private grain dealers. 

The Erer Woreda has a high potential for fruits and vegetables production under irrigation.  In this regard the markets of Dire Dawa and the export market of Djibouti can still absorb increased production.

The Liben Zone has a high potential for the production of natural gum and different incenses.  However, the marketing of these products has not been developed starting from harvesting up to sales.  Hence, concerned Bureaus need to organize strong extension system staffed with trained personnel who follow-up and demonstrate to those involved in the collection the best way of harvesting and selling including the organization of service co-operatives.

Livestock marketing centers in the region are not well organized and lack basic facilities.  The extent of illegal livestock trade in the region is of an alarming proportion.  In order to promote livestock trade in the region, there should be regulations which involve, among others, the establishment and maintenance of organized livestock markets and slaughter facilities and collection of levies on these services as well as regulations which pertain to livestock movement and mode of its transport.

Mineral, energy and water resources

Mineral resources

Various exploration works conducted in the past revealed the existence of various major and minor mineral occurrences in the Somali Region. The major mineral occurrences and deposits identified in the region include salt, gold, feldspar, mica and natural gas.  There are also minor occurrences such as graphite, kaolin, magnetite, talc, phosphoric and gemstone.

Major salt occurrences are identified in three localities of the region, viz. Afder, Boji-dol and El-dere.  Minor occurrences are also reported at Dolo-Odo, Melka-Softu, Sede and Kenere localities in Liben and Afder zones.  Most of the occurrences are in brine form.

The geological favourability for primary gold deposit coupled with eluvial, deluvial and alluvial placer gold mining by local inhabitants attracted the attention of many geologists to the Moyale area.  Apart from the potential resources of primary gold in Moyale area, there is a potential of places gold along the banks and steam beds on the eastern side of Moyale within a radius of 15-50 km. between Haramsam and Dukisso localities.

The major feldspar occurrences in the Somali Region are known at Shebelle area, near Bombas and Babile towns. The shebelle pegmatite lenses are a good quality quartz-orthoclase type which are suitable for high quality glass and bottle manufacturing. Mica occurrences are known at Shebelle and caravan areas.  Investigation conducted in these localities revealed that the mica is poor in quality and low ingrade.  However, it can be utilized in paper industry as mica powder.

The Somali National Regional State is the greatest oil and gas reserve area in Ethiopia owing to the existence of the required rock source for oil and gas prospectively and large sedimentary basin called the Ogaden Basin.  The Calub Gas Share Company has been established to utilize the Calub Gas for fertilizer (Urea & NH3 ), electrical generation and production of petroleum products and other chemicals.  The Calub Gas reserve is estimated at about 271 TCF or 76 Bm3.

The Somali Region is also endowed with other several mineral occurrences which could be utilized for various industrial applications.  This includes graphite, kaolin, talc, phosphate etc.  which are hosted within the meta - sedimentary sequence of upper protozoic age.

There are also wide occurrence of raw materials for construction in the Somali Region particularly in Korahe, Liben and Shinile Zones. The association of different geological formations with various geological environments in the region indicates the existence of other potential areas for construction raw materials.

Energy resources

The Somali Region is endowed with various energy, resources such as natural gas, hydropower, solar, wind and biomass resources.

Petroleum exploration activities in the Ogaden basin were carried out by a number of international companies during the last 38 years and it is found to be prospective for petroleum.  Among the exploratory and development wells drived, the Calub area is ready for development to produce the gas condensate.

The major basins in Somali Region such as the Ogaden depression and the Wabi Shebelle River basins have tremendous potential for hydropower generation.  The estimated dependable potential of these basins is 6974 GWH/Y which is roughly about 3.47% of the country’s potential.  It is estimated that some 738 MW could be generated by harnessing the Wabi Shebelle River.  Wind energy can be one of  the main energy sources in the Somali Region.  Although most of the zones in the region have high wind energy, there is no energy source that depends on wind speed in the Somali Region.

The Somali Region has also abundant solar energy potential.  The solar radiation potential in the region is estimated to be 5500 to 6000 wh/m2.  Hence the introduction and application of solar photo-voltaic (PV) technology can play vital role to meet the energy requirement in the area.

Biomass is the major energy source currently used in the region for cooking and other purposes.  Since most of the population in the region have no experience in the use of agri-residues and dung as energy sources, they mostly depend on woody biomass energy.

Water Resources

The Somali Region can be divided into four basins. These are the eastern Ogaden, Wabi Shebelle, Genale-Dawa and part of the Awash basins.  Wabi Shebelle, Weib, Genale, Dawa, Fafen and Gerer are the main rivers that form the main drainage systems of the region.

Wabi Shebelle is the largest basin with a total area of 205,400 km2 within Ethiopia.  Jigjiga, Deghabour, Kebridehar, Kelafo are among the main towns that lie in the basin.  The eastern Ogaden basin has a total area of about 71,900 km2 while the eastern part of the Awash basin has a catchment area of 47,360 km2 lying mostly in arid and semi-arid zones.  Genale-Dawa is the largest basin after Abay and Wabi-shebelle occupying 168,000 km2.  Main towns located in this river basin are Moyale, Wachile, Filtu etc.

Tourism resources

The Somali Region is endowed with a wide variety of natural, cultural and historical tourist attractions.  These are briefly discussed below:-

Natural attraction and tourism infrastructure

The Somali Region has plenty of cultural and historical attractions. Among the natural attractions of the region, the major ones are as listed below:-

  • Babile rock valley,

  • The Karamara mountain,

  • The desert landscape and vegetation,

  • Harar-Jigjiga scenic route,

  • Natural hot springs,

  • Forest resources,

  • Rivers, and

  • Wildlife and conservation areas, etc.

The major historical and cultural attractions in the region include:

  • The Welwel Battle field,

  • Funeral sites, and

  • Other cultural and historical attractions.

Visitors to the Somali Region can be categorized into domestic and international tourists.  Domestic tourists include Ethiopian nationals and foreign nationals residing in Ethiopia.  The international tourists include Djibouti visitors, visitors from neighbouring Somali land and other tourists.

The Somali Region like other backward regions of the country has no accommodation and catering facilities for tourists except the regional capital where modest accommodation and catering services are provided.  Accommodation and catering facilities in the remaining zonal towns are for the most part non-existent or are of a very poor quality to be classified as a hotel. Accommodation and catering services should be expanded to meet the demand of tourists.

Historical tourist attraction sites

The Somali Region has a variety of historical heritage that originate chiefly from the importance of the region for archaeological researches and studies on related historical facts.  The major historical attractions of the region include Mosques, shrines, market places, caravan, routes, battle fields and similar other sites in various zones of the region. The region played a major role in the medieval as well as the modern history of Ethiopia.  Hence, the region has significant attractions sites that can offer a wide opportunity for the development of tourism industry.

Cultural heritage and attractions

The Somali are cattle herding people, and this influences every aspects of their lives.  They are pre-dominantly pastoral in sentiment.  The Somalis are forced by their cattle herds to be much mobile, as a result areas which at one season of the year are densely populated are deserted at another time.

The Somalis have traditionally divided themselves into the two major lineages of Sab and Somali. The Somali are predominantly nomadic pastrolists, while the Sab constitute a complex of hunter gatherers, agriculturists, and in some cases a pastoral aristocracy dominating Reerbare’s a peasant society and cultivators settled in Kelafo, Mustahele and Imi areas on the banks of Shebelle river.  The Reer-bare’s are said to belong to peoples of Bantu speaking origin.

There are also enclaves of (non-Bantu) Sab who are craftsmen such as shoemakers or leather workers Midgan and iron-workers or blacksmiths Tumal or Tomal all necessary but despised vocations in the eye of the pstoralists, who normally would not accept the Sab as equals in marriage or in other social relationships.

Thursday, 12 August 2021 20:21

Overview

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Introduction

In this regard, many among the Diaspora are registering concrete results by engaging in investment, trade and tourism in the country, in transfer of foreign currency, knowledge and technology, and image building. With this development in mind it has become imperative to prepare a Diaspora Policy that can efficiently respond to the need to ensure active Diaspora participation in political, economic and social activities of the country so that it benefits from its engagement and contributes to the well-being of the country.

The Policy document, is, therefore prepared by making detailed research on previous directives and implementation of the activities pertaining to the Diaspora, and using the best experiences of other countries, different written materials on the subject, experience sharing forums, and suggestions by the Diaspora as inputs.

The Policy document is divided into three parts. Part one focuses on the definition, vision, mission, objectives and relevance of the policy and the review of the global status of Diaspora engagement. Part two deals with the basic principles of and major goals of the policy. Part three presents the strategies and implementing bodies of the policy.

1. Review of Diaspora participation

1.1. Global status of Diaspora participation

Mankind has been migrating since very ancient time from one place to another for various reasons. Historians define the human movement from East Africa to the rest of the world as the first migration. Many such migrations manifested in different ways have occurred since then. However, massive flux of people from places to places is a recent phenomenon.

Post-cold war era, globalization has brought with it an accelerated circulation of capital, goods, information and with it an ever increased human migration. Modern, fast and reliable modes of transport and communication contribute much to this phenomenon. Nowadays 3% of the total world populations, that is, more than 200 million people live outside their birth place, and studies suggest that the figure will rise by 2.9% annually. Even though human migration can be caused by war and other related causes, the main factor has now become lack of job opportunities and low level development in developing countries and the presumed availability of conducive atmosphere and opportunities in the developed world.

Migration can be viewed differently from the angle of the source and the destination country. There is a tendency to consider migration as completely harmful as it drains educated man power of the source countries, while on the other hand it is believed that the Diaspora could contribute to the development of their home countries through remittance, knowledge and technology transfer, investment, etc.

However most people have agreed that citizen’s contribution for their country, while they are outside of their home land, is limited compared to their contribution while living in their home country.

In a similar view, destination countries blame migration as a factor for limiting employment opportunities for their own citizens; though on the contrary indicate its advantage of filling the gap for the jobs that have employee shortages.

Recognizing the difficulty to stop the movement of people from place to place, an international consensus has been reached on the idea that both countries of origin and destination create a system to minimize the shortcomings of migration and work to capitalize the mutual benefit.

Hence, various studies indicate that, migration has its own contribution to bring about better economic development in developing countries through raising additional finance, creating knowledge and technology transfer and reducing poverty as well as filling employment gaps in destination countries if they are geared in a right policy direction.

As a result of this, the Diaspora affair is getting special attention on bilateral relations of different countries, and also on international cooperation forums. Hence, various countries are establishing institutional structures and designing policies for their Diaspora community to participate in knowledge and technology transfer, trade, investment and tourism promotions, raising foreign currency, image building, and serving as a bridge for the country as well as participating in charity works while they are living in destination countries or going back to their country of origin. Some countries which implemented such a system in advance are proved to be successful.

1.2. Survey on the participation of Ethiopian Diaspora

It has been long time since Ethiopians start to leave their home land and migrate to various countries due to political, economic and social reasons. Ethiopia has been also known as the destination country for Jew, Armenians, Arabs, Greeks, Turkish, etc. migrants. Documents indicate that during the emperor’s time and following the expansion of modern education in the country, Ethiopians used to come back and serve their country after they completed their education in Europe and North America.

Following the overthrow of the emperor’s administration by the dictatorial military regime, with the exception of a few, most Ethiopians who were abroad for their education remain in their respective countries. Emanating from the dictatorial behaviour of the regime, educated people in the country and farmers who reside in the borderlines of neighbouring countries lost their hope and were obliged to leave the country. Without considering citizens who left to other destinations, this made Ethiopia the top ten source of migration in North America.

After the demise of the Dergue regime and the coming in to power of the EPRDF government, citizens are continuing to travel to other countries to get higher education opportunities, get access to resident permits of various countries and are becoming beneficiaries of that country’s opportunities.

It is estimated that not less than 2 million Ethiopian Diasporas are residing in countries of North America, Europe, the Middle East, Australia and Africa, of which people in North America and Europe have better income and educational status.

Members of the Diaspora community living in North America and Europe have recently started to support their families and country through investing their money in different sectors of the economy, transferring knowledge and technology, sending remittances etc. apart from building the country’s image and standing for the causes of the country.

Most unskilled and some semi-skilled labours who travelled to the Middle East to exploit the opportunity created in the labour work sector are responding swiftly for the call of the country and the government. They are also contributing immensely by participating in different investment sectors and send remittances for their families. In general, even though the growing trend of illegal migration towards the Middle East creates a complicated situation in the effort to protect their rights, it is indicative that there is a possibility to create a condition to reap better benefits from the Diaspora by solving the problems through time.

South Africa, on the other hand, has become a new destination in Africa among educated and non-educated Ethiopians. Botswana and Equatorial Guinea can also be mentioned as destination countries especially for Ethiopian professionals. It is believed, therefore, that by creating conducive environment and strengthening the relationship with these citizens, there is a chance for the country and the people to harness a better benefit.

In addition to these, the number of new generations living around the world and adoptee who are traveling to western countries is huge. There is a possibility for the country to gain immeasurable benefits by twining these generation and adoptee with their culture, language and other social values.

In general, Ethiopia is among the countries whose people migrate in a very high rate. On the one hand, this indicates that measures have to be taken to minimize the brain drain. It also indicates that engaging the Diaspora residing in different parts of the world and creating conducive environment for them to participate in the country’s development endeavour is pressing.

 

2. Relevance of the Ethiopian Diaspora Policy

The initial point for the formulation of Diaspora policy is the Federal Democratic Republic of Ethiopia foreign affairs and national security policy and strategy document. In this policy document stated that Ethiopians in the Diaspora could play an important role in carrying out research and investing at home. In addition they could win friends for Ethiopia and try to influence their country of residence to cooperate with our country. Cognizant of the key roles played by Ethiopian residing abroad, the government should take initiatives in creating the most conducive environment for them to play constructive role

Having a Diaspora Engagement Affairs Directorate General in the Ministry of Foreign Affairs and collaborative work at the Federal and Regional level; providing foreign nationals of Ethiopians origin with certain rights to be exercised in their country of origin proclamation; and allowing opening bank account in foreign currencies; to tackle the bottlenecks of Diaspora.

Even if the above measures have taken place, no policy has been promulgated to guide the Diaspora’s affairs and few efforts are made to utilize their economic potential and skill in an organized way in their original country in a consistent way.

With a view to make the Diaspora fully aware of the peace, development and democracy endeavours of their country and the results so far registered, and in order to make them actively participate accordingly, therefore, it is essential to adopt a national Diaspora policy that would protect their rights abroad and to solve domestic bottlenecks confronting them.

 

3.  Definition and General Objective of the Policy

3.1. Definition

Ethiopian Diaspora means Ethiopians and Ethiopian origins that live outside Ethiopia.

Ethiopian Diaspora Policy means a document containing objectives, strategies and other activities aimed at informing the various services rendered to ensure participation of the Ethiopian Diaspora and their rights and benefits on one hand, and ensuring the utilization of Diaspora transfer of knowledge, finance, interactions and other contributions on the other hand.

3.2. General objective of the Diaspora Policy

Our major objective is to build up strong relationship between Diaspora with their origin country Ethiopia. It also includes encouraging and facilitating conducive environment for participation of Diaspora on ongoing peace and democratization building process to benefit their county and to benefit from their engagement and to preserve their rights and interests abroad.

Thursday, 12 August 2021 19:44

Departments

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Diaspora Community Development Works

 

This is a key role that will be taken by the Diaspora as a precondition for economic and social activities. The success of the Diaspora community is based on the effectiveness of our strategy in order to have a strong Diaspora community based on their policies and directions. The way the Diaspora has gone before failed not because of gaps in the policy but with the inability to coordinate this community-based development work with the Diaspora’s mindset and organization. To safeguard the rights and benefits of the Diaspora and to ensure that our country is benefiting from this development partnership, it needs to take a broader approach to understanding it. Although the Diaspora community is aware of the realities of the country in which they live in the various parts of the world, it is possible to coordinate in a close and understandable manner the way in which the community development work is carried out in the context of the state of affairs. Similar roles cannot be done by all Diaspora associations in all countries, so the same consensus strategy cannot be used for all Diaspora.

Although regions are self-sustaining, the Diaspora projects, especially the Diaspora outreach programs themselves, are encouraging to the generality of the Diaspora community, national understanding and national development issues. The agency should be aware of and support activities carried out on federal level that are related to the diaspora. Combining it with community development activities will help in highly facilitating the job. Therefore, our Diaspora community development project aims to fully understand the community’s legal, economic, cultural and religious beliefs and to collaborate in an effective way. This work is organized so that it can be the core of the Agency’s mission.

In this section, the Diaspora community will work to create inter-national consensus, develop national tolerance and culture of co-existence; and facilitate platforms for the exchange of valuable experiences between the country they are living in and the homeland.  It will use religious and cultural holidays in the community as a large social capital to increase the diaspora’s bond with one another. Additionally, it will work towards achieving the aspired change in the political culture and the general political reform that participates the Diaspora and for a strong political culture, democracy and national resolution.

Besides, in this section, women and youth will be involved in gender mainstreaming in the area of the Diaspora working at the Agency and abroad. In addition, they will support the establishment of Diaspora Societies, established by women’s Diaspora members, connect with similar localities in the country, and create conditions for working towards national development. Additionally, the second and third generation of the young Diaspora in different countries, will be involved in designing and participating in projects such as know your country.

Wednesday, 11 August 2021 11:38

Services

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FORMS OF ENTERPRISE FOR CARRYING OUT INVESTMENTS

Investments may be carried out in one of the following Enterprises:

  • Sole proprietorship;

  • Enterprise established in Ethiopia or abroad;

  • Public Enterprise established in accordance with the relevant law;

  • Cooperative society formed in accordance with the relevant law.

MINIMUM CAPITAL REQUIREMENT FOR INVESTMENT

Foreign investors

  • Any foreign investor, to be allowed to invest under this Proclamation, shall be required to allocate a minimum capital of USD 200,000.00 (two hundred thousand) for a single investment project.

  • The minimum capital required of a foreign investor jointly investing with a domestic investor shall be USD 150,000.00 (one hundred fifty thousand).

  • The minimum capital required of a foreign investor investing in architectural or engineering works or related technical consultancy services, technical testing and analysis or in publishing works shall be:

    • USD 100,000.00 (one hundred thousand) if the investment is made on his own;

    • USD 50,000.00 (fifty thousand) if the investment is made jointly with a domestic investor.

Domestic investor

  • The minimum capital to be considered as an investor and issue investment license in Somali Region has to allocate 1,500,000 Ethiopian Birr

  • Those project whose investment capital is below 1,500,000 Ethiopian Birr is considered as Small and Micro enterprise

SERVICE PROVIDED BY SRIDB

  • Provision of pertinent investment information and data

  • Licensing services

  • Renewal suspension and revocation of investment permit

  • Investment Incentives

  • Investment promotion

  • Facilitation and aftercare Services

  • Redresses clients’ grievances or concerns

  • Coordinate diasporas efforts and activities in the region

PROVISION OF PERTIENANT INVESTMENT INFORMATION

Somali Region Investment and Diaspora Bureau is in charge of providing pertinent information to potential investors regarding the region:

  • Investment potential and opportunities

  • Requirement for issuing license

  • Renewal of investment incentives

  • Land for investment

  • Priority investment area

  • and related information 

REQUIREMENT AND ISSSUANCE OF INVESTMENT PERMIT

The following investors shall be required to obtain investment permits:

  • Foreign investors;

  • Domestic and foreign investors investing jointly;

  • Investors investing as domestic investors pursuant

  • Domestic investors who, investing in areas eligible for incentives, seek to be beneficiaries of such incentives; and

  • An investor seeking to expand or upgrade an existing investment, provided that the investment is eligible for incentives and the investor seeks to be beneficiary of such incentives.

INVESTMENT PERMIT

Investment to be made by Domestic Investor and Ethiopian in Diaspora

The Somali Region Investment and Diaspora Bureau is responsible to issue investment license only for Domestic Investor and Ethiopian in Diaspora. The investment can be in sole proprietorship, PLC, JV and Share Company business form. However, all shareholders must be Ethiopian or Ethiopian origin. The requirement to issue investment license varies depends on the type of business form in which the investor plan to operate.  

The investment permit application process is simple and it requires only a few steps and requirements to issue investment license for domestic investor and Ethiopian in Diaspora (Ethiopian Origin). These steps are:

Investment made by sole propertorship

Step 1: Collect information from Somali Region Investment and Diaspora Bureau (SRIDB) about the requirements, investment opportunities, potentials, incentives and etc.

Step 2: Collect application form from Somali Region Investment and Diaspora Bureau

Step 3: Submit filled and signed application form (by the investor or general manager or authorized person)

Step 4: Submit project proposal (business plan),

Step 5: Submit copy of valid ID Card (passport or Yellow card),

Step 6: Submit bank letter that show the financial capacity

Step 7: Submit two recent passport size photographs of the investor,

Step 8: Collect investment permit certificate

Investment made by PLC, JV and Share Company

Step 1: Collect information from Somali Region Investment and Diaspora Bureau (SRIDB) about the requirements, investment opportunities, potentials, incentives and etc.

Step 2: Collect application form from Somali Region Investment and Diaspora Bureau

Step 3: Submit filled and signed application form (by the investor or general manager or authorized person)

Step 4: Submit project proposal (business plan),

Step 5: Submit copy of authenticated Article of Association and Memorandum of Association

Step 6: Submit copy of valid ID Card (passport or Yellow card) of members,

Step 7: Submit bank letter that show the financial capacity

Step 8: Submit two recent passport size photographs of the Manager,

Step 9: Collect investment permit certificate 

Investment to be made by foreign national and jointly with Ethiopian

As per the Ethiopian investment law, the following investments fall under the jurisdiction of Ethiopian Investment Commission. It includes: -

  • Wholly foreign owned investment;

  • Joint investment made by domestic and foreign investors;

  • Investment made by a foreign national, not Ethiopian by origin, who is treated as a domestic investor

  • Investment made in areas eligible for incentives by a domestic investor who is required to obtain a business license from an appropriate Federal Body

Thus, if the investment is to be made by the above listed investor the investment license is issued by Ethiopian Investment Commission.

Wednesday, 11 August 2021 11:33

Agriculture

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Crop production potential

The region has four major rivers, Wabi Shebelle, Genale, Dawa and Weyib which carry large amount of water throughout the year.  The region has also high underground water potential.

Sorghum and maize are the two staple food crops invariably cultivated by all farmers in the region, whether lowland or highland.  Other lowland crops such as sesame, groundnut, cotton and fruits like papaya, mango and some citrus are grown in scattered manner. Highland crops such as millet, teff, wheat and barley are cultivated along with some highland fruits by highland farmers in some parts of Jigjiga, Shinile, Liben and Afder zones.

About 70% of the rural population of the Somali Region are predominately pastoralists.  The remaining rural population are agro-pastoralist (18%) practicing both livestock rearing and crop production, and pure crop producers (12%) depending on the production of the different crops.

The agro-climatic condition of the region allow diversifying agricultural products by growing a variety of food crops that are adaptable to the agro-ecological zones of the region either under irrigation or rain fed. However, the large tract of cultivable area of which very small is currently under cultivation. The major crops that can be grown in the region include the following:-

  • Cereal crops (maize, sorghum, millet and wheat),

  • Oil crops (groundnut, sesame & castor oil),

  • Pulses (pigeon pea, chick pea and mung bean),

  • Industrial crops (cotton, sugar cane, tobacco, sisal and kenaf),

  • Vegetables and fruits (green bean, sweet potato, muskmelon, asparagus, banana, papaya and grapes),

  • Flowers,

  • Insecticide plants,

  • Agro forestry

Livestock, apiculture and fish resources

Livestock is a very important and critically required resource for the well being of the Somali society. The main species reared in the region include cattle, sheep, goats, equine and camels.  There are three district types of livestock production system based on the prevailing climatic conditions of the rangeland in the region. These are crop based mixed farming system, livestock based mixed farming system and pastoralist.

There is no reliable data on the livestock population of the region.  According to the estimate made by the socio-economic survey conducted in the region by IPS, the total population of livestock in the region is about 6,874,000 TLU, out of which cattle constitute about 44%, camel (30%), sheep (13%), goats (12%).  The average density of cattle per km2 of total area is about 11.7 which ranges from 4.9/km2 in Warder zone to 22.4/km2 in Jigjiga zone.

Cattle are the most important livestock species in the region by their dual product of milk and meat.  Small ruminants are the next most important animals that produce food and generate income.  Camels play significant role as a source of milk, meat and cash reserves.

Livestock mortality rate is very high owing to such factors as shortage of feed and water during the dry and drought periods, diseases, plant poisoning etc.

The prime feed resource available to the livestock in the region is natural vegetation.  The contribution of crop residues and aftermath grazing of cropped lands are negligible.  The overall sources of feed are not sufficient to support the livestock population found in the region at least during parts of the dry season.

Fishery is almost forgotten sub-sector in the region although rivers like Wabi Shebelle, Weyib and Dawa are expected to have huge fish potential.

 

Forest resources

The Somali Region is endowed with natural resources including bio-diversity which is rich in species of plants and animals. Of the entire flora in Ethiopia, 25% are represented in the region and 18% of these are endemic to the region and 135 plant families, 626 genera and species of plants are recorded in the region.  There are also a number of mammals, birds, reptiles, amphibians which are adapted to the arid and semi-arid conditions of the region.

The region is known to have the potential for natural gum and incense yielding tree species that are dominant in Liben, Fiq and Afder zones as well as Gode and Korahe zones.  The wild animals which are known to exist in the region include lion, hyena, leopard, fox, hunting dog, crocodile, oryx, zebra, baboon, giraffe ostrich, hippopotamus, monkey and a variety of birds.

The main climax vegetation classes in the region are:-

  • Acacia - bussel open woodland,

  • Accacia - commiphora bushland,

  • Ever-green/semi-ever-green scrubland,

  • Semi-desert Acacia bussel scrab land, and

  • Riparian forests.

Presently the forest resources of the region are used as fodder for livestock, source of bio-fuels, construction materials, traditional medicines and source of natural gum, incense and myrrh.

Despite their importance for local economies and the livelihood of the people, the forest resources of the region are neglected.

Agricultural Marketing

Marketing of agricultural products is analyzed by considering the situation in each zone of the region.  Marketing of various agricultural products such as grains, live animals, hides and skins, honey, fruits and vegetables, forest products are practiced in the region to a varying degree.  Observation of the data collected on prices of the products revealed the existence of price fluctuation.

Factors such as food availability situation in the neighbouring Somalia Republic, and distribution of relief food at the refugee centers have significant impact on the supply and prices of grain in the area.

With respect to livestock marketing, most of livestock marketing is through smuggling. Absence of resting places, the poor communication system coupled with lack of trucks to transport the live animals is the major constraints to live animal trade.  With respect to other agricultural products, the export market to the neighbouring countries is not yet exploited and hence expansion of the various agricultural commodities cannot be hampered by lack of marketing outlet in the future.

As far as grain marketing is concerned, the Somali Region is not surplus producing and consequently possibility of its supplying grain to other regions is very remote at the moment.  However, to encourage flow of grain into the region, an enabling environment should be created to encourage private grain dealers. 

The Erer Woreda has a high potential for fruits and vegetables production under irrigation.  In this regard the markets of Dire Dawa and the export market of Djibouti can still absorb increased production.

The Liben Zone has a high potential for the production of natural gum and different incenses.  However, the marketing of these products has not been developed starting from harvesting up to sales.  Hence, concerned Bureaus need to organize strong extension system staffed with trained personnel who follow-up and demonstrate to those involved in the collection the best way of harvesting and selling including the organization of service co-operatives.

Livestock marketing centers in the region are not well organized and lack basic facilities.  The extent of illegal livestock trade in the region is of an alarming proportion.  In order to promote livestock trade in the region, there should be regulations which involve, among others, the establishment and maintenance of organized livestock markets and slaughter facilities and collection of levies on these services as well as regulations which pertain to livestock movement and mode of its transport.

 

Wednesday, 11 August 2021 11:31

Mineral, energy and water resources

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Mineral resources

Various exploration works conducted in the past revealed the existence of various major and minor mineral occurrences in the Somali Region. The major mineral occurrences and deposits identified in the region include salt, gold, feldspar, mica and natural gas.  There are also minor occurrences such as graphite, kaolin, magnetite, talc, phosphoric and gemstone.

Major salt occurrences are identified in three localities of the region, viz. Afder, Boji-dol and El-dere.  Minor occurrences are also reported at Dolo-Odo, Melka-Softu, Sede and Kenere localities in Liben and Afder zones.  Most of the occurrences are in brine form.

The geological favourability for primary gold deposit coupled with eluvial, deluvial and alluvial placer gold mining by local inhabitants attracted the attention of many geologists to the Moyale area.  Apart from the potential resources of primary gold in Moyale area, there is a potential of places gold along the banks and steam beds on the eastern side of Moyale within a radius of 15-50 km. between Haramsam and Dukisso localities.

The major feldspar occurrences in the Somali Region are known at Shebelle area, near Bombas and Babile towns. The shebelle pegmatite lenses are a good quality quartz-orthoclase type which are suitable for high quality glass and bottle manufacturing. Mica occurrences are known at Shebelle and caravan areas.  Investigation conducted in these localities revealed that the mica is poor in quality and low ingrade.  However, it can be utilized in paper industry as mica powder.

The Somali National Regional State is the greatest oil and gas reserve area in Ethiopia owing to the existence of the required rock source for oil and gas prospectively and large sedimentary basin called the Ogaden Basin.  The Calub Gas Share Company has been established to utilize the Calub Gas for fertilizer (Urea & NH3 ), electrical generation and production of petroleum products and other chemicals.  The Calub Gas reserve is estimated at about 271 TCF or 76 Bm3.

The Somali Region is also endowed with other several mineral occurrences which could be utilized for various industrial applications.  This includes graphite, kaolin, talc, phosphate etc.  which are hosted within the meta - sedimentary sequence of upper protozoic age.

There are also wide occurrence of raw materials for construction in the Somali Region particularly in Korahe, Liben and Shinile Zones. The association of different geological formations with various geological environments in the region indicates the existence of other potential areas for construction raw materials.

Energy resources

The Somali Region is endowed with various energy, resources such as natural gas, hydropower, solar, wind and biomass resources.

Petroleum exploration activities in the Ogaden basin were carried out by a number of international companies during the last 38 years and it is found to be prospective for petroleum.  Among the exploratory and development wells drived, the Calub area is ready for development to produce the gas condensate.

The major basins in Somali Region such as the Ogaden depression and the Wabi Shebelle River basins have tremendous potential for hydropower generation.  The estimated dependable potential of these basins is 6974 GWH/Y which is roughly about 3.47% of the country’s potential.  It is estimated that some 738 MW could be generated by harnessing the Wabi Shebelle River.  Wind energy can be one of  the main energy sources in the Somali Region.  Although most of the zones in the region have high wind energy, there is no energy source that depends on wind speed in the Somali Region.

The Somali Region has also abundant solar energy potential.  The solar radiation potential in the region is estimated to be 5500 to 6000 wh/m2.  Hence the introduction and application of solar photo-voltaic (PV) technology can play vital role to meet the energy requirement in the area.

Biomass is the major energy source currently used in the region for cooking and other purposes.  Since most of the population in the region have no experience in the use of agri-residues and dung as energy sources, they mostly depend on woody biomass energy.

Water Resources

The Somali Region can be divided into four basins. These are the eastern Ogaden, Wabi Shebelle, Genale-Dawa and part of the Awash basins.  Wabi Shebelle, Weib, Genale, Dawa, Fafen and Gerer are the main rivers that form the main drainage systems of the region.

Wabi Shebelle is the largest basin with a total area of 205,400 km2 within Ethiopia.  Jigjiga, Deghabour, Kebridehar, Kelafo are among the main towns that lie in the basin.  The eastern Ogaden basin has a total area of about 71,900 km2 while the eastern part of the Awash basin has a catchment area of 47,360 km2 lying mostly in arid and semi-arid zones.  Genale-Dawa is the largest basin after Abay and Wabi-shebelle occupying 168,000 km2.  Main towns located in this river basin are Moyale, Wachile, Filtu etc.

Wednesday, 11 August 2021 11:29

Tourism resources

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Tourism resources

The Somali Region is endowed with a wide variety of natural, cultural and historical tourist attractions.  These are briefly discussed below:-

Natural attraction and tourism infrastructure

The Somali Region has plenty of cultural and historical attractions. Among the natural attractions of the region, the major ones are as listed below:-

  • Babile rock valley,

  • The Karamara mountain,

  • The desert landscape and vegetation,

  • Harar-Jigjiga scenic route,

  • Natural hot springs,

  • Forest resources,

  • Rivers, and

  • Wildlife and conservation areas, etc.

The major historical and cultural attractions in the region include:

  • The Welwel Battle field,

  • Funeral sites, and

  • Other cultural and historical attractions.

Visitors to the Somali Region can be categorized into domestic and international tourists.  Domestic tourists include Ethiopian nationals and foreign nationals residing in Ethiopia.  The international tourists include Djibouti visitors, visitors from neighbouring Somali land and other tourists.

The Somali Region like other backward regions of the country has no accommodation and catering facilities for tourists except the regional capital where modest accommodation and catering services are provided.  Accommodation and catering facilities in the remaining zonal towns are for the most part non-existent or are of a very poor quality to be classified as a hotel. Accommodation and catering services should be expanded to meet the demand of tourists.

Historical tourist attraction sites

The Somali Region has a variety of historical heritage that originate chiefly from the importance of the region for archaeological researches and studies on related historical facts.  The major historical attractions of the region include Mosques, shrines, market places, caravan, routes, battle fields and similar other sites in various zones of the region. The region played a major role in the medieval as well as the modern history of Ethiopia.  Hence, the region has significant attractions sites that can offer a wide opportunity for the development of tourism industry.

Cultural heritage and attractions

The Somali are cattle herding people, and this influences every aspects of their lives.  They are pre-dominantly pastoral in sentiment.  The Somalis are forced by their cattle herds to be much mobile, as a result areas which at one season of the year are densely populated are deserted at another time.

The Somalis have traditionally divided themselves into the two major lineages of Sab and Somali. The Somali are predominantly nomadic pastrolists, while the Sab constitute a complex of hunter gatherers, agriculturists, and in some cases a pastoral aristocracy dominating Reerbare’s a peasant society and cultivators settled in Kelafo, Mustahele and Imi areas on the banks of Shebelle river.  The Reer-bare’s are said to belong to peoples of Bantu speaking origin.

There are also enclaves of (non-Bantu) Sab who are craftsmen such as shoemakers or leather workers Midgan and iron-workers or blacksmiths Tumal or Tomal all necessary but despised vocations in the eye of the pstoralists, who normally would not accept the Sab as equals in marriage or in other social relationships.

Wednesday, 11 August 2021 08:52

THE SOMALI REGIONAL STATE AT A GLANCE

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