- Written by Administrator
- Written by Administrator
Somaliland is characterized by a post conflict country, which its major development sectors are developing. Almost the country was re-established, after the brutal civil war which brings the country into its’ kneels, not only, all sectors including: education, health systems, infrastructure, industries, and development actors were ruined during the wars, but also, the technicians, elites, and know-how of experts were lost during the deadly wars.
After 1991 Somaliland began to construct its own way to development without much international aid available, Somaliland set-up a system based on the hybrid system which unites the western form of democracy and Somali traditional-religious values. Somaliland Constitution provides the basic rights and grantees for everybody, including foreign people and specifically grantees foreign investment in the country. As the country moves forward, there are a lot to be done within the arena infrastructure development. For years, Somaliland was realizing a major breakdown and lack of sufficient, effective, avoidable and reliable power sector. This makes difficult for the development of light and heavy industries which can bring more work and prosper economy to the country, electricity companies began on small self investments on diesel engines having very low output and very high cost, this causes local people to rely on burning trees for fuel and cooking purpose.
This result major environmental devastation with chronic reliance on the natural environment, researches show that in 10 years, major forests will turn into desert allies and many environments this was the case for a long. One of the major problems is the high demand of charcoal in the local towns and lack of employment in the local people gives them the incentives to burn down all trees, without thinking about the major environmental problems. This chronic situation has a major problem to the economy of the country, since the major backbone of Somaliland economy is based on livestock, which are declining both in quantity and quality since the breakdown of their major fodder, and trees, if this trend continues it will cause major breakdown in Somaliland economy. To create sufficient and reliable energy which can be avoided, the Ministry of Mining, Water and Energy issues a energy policy which provides the major problems and avenues for prosper Somaliland, one of the major things that the policy underlines includes lack of regulations, for managing the investments in the energy sector. Fortunately, thanks to the USAID, for funding the draft of the first energy law in Somaliland since its independence. One of the expectations of this project includes creating the environment which is conductive and attractive for investment of energy sector and development of related matters, especial focus will be given to the renewable energy and investment in coal processing, wind-power, and hydrocarbon industries in Somaliland, it’s expected from the Act to give special consideration and tax holidays for importers and producers of renewable energy, and investors in the energy sector.
It’s expected that this approach will lead into an environment which will be conductive to Somali business.