Somalia JNA
Productive Sectors & Environment (PSE) Cluster
PROGRESS REPORT
PRESENTATION TO SACB, NAIROBI
28 March 2006, 11.00 Hours
Gerry Mc Carthy
Chief Technical Advisor,
International Labour Organization, Somalia Programme
PSE Cluster Objective
Evaluate how growth of the productive (real)
sectors and the sustainable judicious use of
natural resources can contribute substantially to
reconstruction, development, income generation
and poverty reduction in the Somali economy.
The PSE Cluster Report will also propose short
to medium term priority actions (policies,
institutions and investments) to achieve these
objectives.
PSE SUB-CLUSTERS
 Agriculture
(including crops, irrigation,
forestry, natural products, natural resource
management)
 Fisheries
 Livestock
 Private Sector Development
 Financial Service Development
 Environment
CROSS-CUTTING ISSUES
COVERED
 Peace-building,
reconciliation and conflict
prevention.
 Capacity building.
 Gender and human rights.
OTHER CLUSTERS – KEY
LINKAGES
Livelihoods – role of private sector in productive
livelihood development, and fit of micro and
artisanal enterprise.
 Livelihoods/HDD – promoting local ownership of
economic recovery and planning.
 Infrastructure – importance for economic
recovery and bridging the interim employment
gap.
 Governance – creating an enabling environment
for promoting investment and encouraging
entrepreneurship.
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EMERGING VISION for REGENERATING
the SOMALI ENVIRONMENT
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Affordable fuel alternatives to charcoal – coal,
solar, wind, biogas, kerosene, etc.
Enforced ban on charcoal exports.
Community-led reforestation schemes.
Enforcement capacities and improved
governance reducing illegal fishing.
Increased water harvesting for human and
animal consumption and livelihoods.
Improved rangelands carrying capacities for
herd expansion through better natural resource
management and land reform.
EMERGING VISION for PRODUCTIVE
SECTORS
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Putting employment and livelihoods at the centre of
strategies for productive sector growth and expansion.
Reduction of single-commodity (livestock) economic
vulnerability through private sector-led diversification of
the economy founded on adding value to the abundance
of natural resources.
Public sector role = catalyst and facilitator of private
sector-led growth and expansion (by creating an
enabling environment for promoting investment and
encouraging entrepreneurship, and setting a decent
work agenda).
Steady economic growth leading to the creation of large
numbers of new jobs and livelihoods.
PSE WORK INPUTS TO DATE

Mini-retreat, November 2005
 JNA Retreat, November 2005.
 Field Mission (Somaliland, Puntland & Middle Shabelle)
Jan-Feb 2006.
 Hargeisa Zonal Workshop & Business Forum, January
2006.
 Open Forum Progress Briefing & Feedback, Nairobi,
February 2006.
 Sub-cluster report submissions, March 2006.
 Cluster Report, March 2006 (in-progress including
summaries of needs questionnaires responses from
Somalia) – separate reports for Somaliland, Puntland &
South-Central Somalia
CLUSTER BACKGROUND &
PROGRESS INFORMATION
AVAILABLE
 Baseline
information from IFC/World Bank
Somali Private Sector Study &
Recommendations, October 2005
 Notes from PSE Cluster Friends Meeting
at World Bank, 10.2.2006
 Productive Sectors Field Mission Report
11.2.2006
ENVIRONMENT - FINDINGS
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Marine environment and fish resources, forests, rangelands, wildlife and
water are all under varying degrees of stress depending on location and
degree of exploitation.
Wildlife which still existed in 1990 have now disappeared.
Somali fisheries resources are under serious threat if the current rate of
exploitation continues
The few remaining forests in southern zones are being rapidly depleted as
a result of intensive charcoal production that, we understand, is still being
exported despite the official ban on exports: a similar situation is said to
exist in northern areas, but because of the widespread destruction of
acacia forests already in these areas already, the scale is less but of
course still serious at the margin.
The productivity of the rangelands in central and northern regions in terms
of marketable animals produced, has been substantially reduced because
of the four year drought that started in 2000, the cutting of nitrogen
producing acacias for charcoal production, overgrazing in some areas and
in many places massive soil erosion.
FISHING SECTOR – ENVIRONMENT
ACTIONS UNDER CONSIDERATION
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Capacity building for aggressive coastal monitoring of
fishing licenses for trawlers and enforcement of
compliance with license conditions such as size of fish
caught and months when trawling is not permitted
 Reduction in the number of foreign licenses, and
enforcement of fishing regulations for artisanal
fishermen.
 Establishing immediately a force to eliminate illegal
fishing and destructive techniques by foreign or national
boats and large ships in the marine resources around
Somalia’s coast
 Review of the assessments of the evidence of toxic
wastes offshore and assessments of areas not yet
covered.
RANGELANDS – ACTIONS UNDER CONSIDERATION TO
IMPROVE NATURAL RESOURCES & LAND
MANAGEMENT
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Improved capacity to enforce the monitoring of license
conditions for the production of charcoal and penalties
for the removal of anything but dead wood from the
rangelands.
Plan and organize community reforestation programs.
Eliminate cultivation in rangeland areas.
Establish controls on grazing intensity and water
availability for livestock during the annual seasons to
better manage the use of pasture resources and foster
regeneration of trees.
Review of future land policy and grazing rights in the
rangelands to address the increasing number of land
enclosures on common rangelands that benefit a few
herders but penalize many.
FORESTRY – ENVIRONMENT & SECTOR
DEVELOPMENT ACTIONS UNDER
CONSIDERATION
ENVIRONMENT:
 Capacity building for monitoring the issue of charcoal
production licenses.
 Enforcing charcoal production license conditions and a
complete ban on charcoal exports.
SECTOR DEVELOPMENT:
 Kerosene at subsidized prices (short-term).
 Alternative energy technology.
 Development of coal production and distribution as the
logical bulk substitute to charcoal.
 Enterprise- and community-led reforestation schemes
focusing on fast-growing multi-purpose indigenous
species.
FISHING – SECTOR DEVELOPMENT
ACTIONS UNDER CONSIDERATION
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Strengthening the public sector capacity to implement
and enforce public fisheries policies in Somalia’s
territorial waters
Construction of a moderate number of publicly financed
jetties and lighthouses on the coast under community
management to support artisanal fishermen and
encourage growth of private sector based decentralized
ice production and fish processing around the coast.
Substantially improve domestic retail marketing
arrangements for fish in cities and towns
Encouragement to the private sector to revive existing
but non-functional Somali fish processing plants.
Develop simple container handling facilities in the
Bosasso port.
LIVESTOCK - SECTOR DEVELOPMENT
ACTIONS UNDER CONSIDERATION
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Generating capacity to improve support services
through a partnership of government and private
enterprises to improve the productivity of herds
and flocks.
 Enhance marketing facilities for animals being
exported (holding grounds, veterinary inspection
and certification).
 Long term production improvement through
introduction of new and improved cross breeds
and promotion of zero grazing/quality fodder
production.
CROPS - SECTOR DEVELOPMENT
ACTIONS UNDER CONSIDERATION
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Improving the productive capacity of agriculture in the South which
will include: (a) strategic improvements in infrastructure such as
levies to eliminate riverine flooding; (b) rehabilitation of irrigation
structures; (c) re-establishment of support services including microcredit; and, (d) resolution of land policy and land rights in irrigated
and rain-fed farming areas.
In the North actions recommended will probably focus on the role of
the public sector in monitoring and evaluating the use of fragile
resources used for agricultural production under irrigation in river
valleys, as well as crop and livestock production under unique
conditions such as in oasis development.
Since strong incentives will be crucial for the sustained success of
the crop sub-sectors, professional and cost-effective public sector
capacity will need to be built to ensure that: (a) policies encourage
and support the growth of the private sector; (b) core support
services such as relevant and applied research are in place; and (c)
there are highly qualified advisory services available to translate
research results into practical applications for private sector
extension agents
FINANCIAL SERVICES
DEVELOPMENT
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Fiscal policy and legal and regulatory
environment including central bank.
Remittances standards.
Promoting private sector investment in banking
services.
Remittances – harnessing a proportion into
productive enterprise capital.
Financial services and microfinance for MSMEs
and producers.
Insurance services (LoCs).
PRIVATE SECTOR DEVELOPMENT
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Lots of constraints but also lots of opportunities (see
IFC/WB report).
Most focus on SME growth and expansion for job creation
impact.
Special micro enterprise emphasis on gender and youth
entrepreneurship.
Investment in full/part subsidized responsive technical
assistance inputs focusing on market-led product and
service development.
Gradual BDS and development.
Association building and fair trade.
Initial TVET development founded on enterprise-based
growth, community-based training, life skills training,
support for traditional apprenticeship schemes and
development of competency-based training programmes.
Enabling environment creation through public-private
technical partnerships.
MAKING THINGS HAPPEN
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Expand existing initiatives (SLSS and EC agri-tenders).
UNCT Draft Strategic Programme Framework for
Employment and Livelihoods – EEL umbrella.
 JNA Recovery Programme.
 Commonsense responsive projects with clear exit strategies
that also promote social dialogue and local ownership, and
human rights through fair trade/pro-poor growth.
 Build on successful replicable models (Somalia and
elsewhere).
 Focus on market-led opportunities.
 Don’t be afraid to experiment.
 Bridging the employment gap.
 Human rights and fair trade.
 Portfolio of implementing organizations, agencies,
contractors and local partners with clear comparative
technical advantages.