FISHERIES SECTOR IN SOMALILAND

current status, opportunities and constraints

Location of Somaliland:

by the Gulf of Aden to the North, Somalia in the East, the Federal Republic of Ethiopia in the South/Southwest and the Republic of Djibouti in the West. The total land mass area is 137,600 sq. km, with a coastline of 850 km, and EEZ of 70,000 sq. km.

   Characteristic features of the coastline:

The Somaliland coast lies in the southern part of the Gulf of Aden bordered by Djibouti in the North-west, at Loado 45º 15´ East-west, Northeast by Puntland at Qaw 49º E. The climate is hot and humid most of the year.

There are approximately 15permanent settlements on the coast. The main economic activities are fishing, salt harvesting, livestock and petty trade. Public services and physical infrastructures have not developed substantially in comparison to settlements on the plateau and thus the coastal communities are currently considered the poorest part of the population.

institutional structures and legislation 

Several institutions, both public and private, are involved in the sector. The following matrix indicates names of institutions and their mandates in general:

Legislation and Policy:

On September 1995, Somaliland Law on Fisheries was promulgated to deal with jurisdiction of the Somaliland maritime zone, resources management, licensing and penalties. To strengthen the Law on Fisheries, the Coastal and Marine Resource Policy of Somaliland was approved at the end of 2000. The Policy provides a clear vision on resource development and the conservation of biodiversity. The following is the specific principles and objectives stipulated in the Policy:

a.  Optimizing the long- term social and economic benefits from the coastal and marine environment for Somaliland and its people;

b.  Protecting the rich biodiversity of Somaliland’s marine and coastal environments for present and future generations;

c.  Adopting responsible fisheries practices so as to ensure sustainable use of living marine resources;

d.  Coordinating coastal and marine resource use and planning, at a national level;

e.  Promoting fair, equitable and transparent governance over marine and coastal resources;

f.  Meeting international and regional obligations to marine and coastal matters;

g.  Allocating central budgets for fisheries development.

h.  Developing partnerships with stakeholders, communities and local authorities to achieve optimal management of resources.

Description of the fisheries sector in Somaliland 

The fisheries sector has historically not been a priority area for the Somaliland people, and hence the agro-pastoral system and livestock sector has remained the economic backbone of the region. Until the droughts in 1974 and 1976, only very few coastal people were seriously involved in the sector. However, as part of an overall Government policy many drought-affected people were resettled along the coast and encouraged to take up fishing. This initiative was followed by the construction of Berbera Cold Storage and the Fishing Centers in Zeila and Berbera. Consequently, an increased trend was observed in fish consumption in the period 1986-1989, even though the Somaliland people remain some of the lowest consumers of fish and fish products.

The main types of fishing activities:

Despite the diversity and abundance of the marine resources available in Somaliland, the sector has still not developed a wide range of fishing activities designed to harvest the variety and diversity of fish species and other offshore resources. The Coastal and Marine Resources Policy in Somaliland identifies five different types of fishing, of which only artisan and industrial fishing is of significance for the sector.

Artisan fishing:

Artisan fishing is one of the predominant types of fishing in Somaliland. It operates from 10 coastal settlements on a permanent basis and uses about 450- 500 small vessels of which two-third are motorized and the remaining one-third canoes. The sizes of the boats range from 6.4 to 8.5 meters in length. The size of the available vessels is one of the limiting factors to reach offshore resources and prevents the fishermen from fishing during certain seasons of the year. Traditionally, this sector uses gillnets, hooks for large fish and shark, hand-lines, and to a lesser extent, traps and seine nets.

Industrial fishing:

The vessels for industrial fishing are larger and use inboard engines, operating from formal harbors and use equipment of an industrial nature, (collector vessels included). This fishing sector has not previously been of economic significance in Somaliland. Because of its potentiality, the Government of Somaliland and Private Sector plan to develop this sector in the near future.

Subsistence fishing:

It is not easy to differentiate between subsistence and artisan fishing. However subsistence fishing can be defined as fishing without the use of boats and where the catch is entirely for private consumption carried out on an individual basis. Thus, this fishing activity does not contribute significantly to employment and income generation.

   

Fisheries Production 

Less than 1% of Somaliland’s population is currently engaged in the fisheries sector, and of these most are limited to small-scale fishing. Lack of useable coastal roads, adverse temperatures and on-shore infrastructures are the main problems restricting production, processing and marketing opportunities of artisan fisheries. The narrowness of the continental shelf and the predominantly rocky and coralline bottom limits trawling potential to a few areas. The total fish production in Somaliland reached its highest level 

On average, there are 7 crewmen on each vessel. Normally, the system of sharing practiced in Somaliland is as follows:

1.  Costs incurred during the fishing trip are deducted from the gross sales proceeds.

2.  The balance is divided according to a 50:50 ratio, shared between the boat owner and the crew.

  Fisheries Resources:

It is hard to obtain accurate statistical information on Somaliland marine resources for three reasons. Firstly, as mentioned in previous sections, people in this region are pastoral nomads lacking basic knowledge of fishing and have shown a distaste of fishing activities and fish eating. The impact of this cultural barrier is also illustrated by the failure to collect fisheries data for many years and the reluctance of the private sector to invest in the fishery sector. Secondly, all existing marine resource estimates were carried out during the pre-war and hence refer to the overall Somali Democratic Republic resources. Thirdly, Somaliland has not executed research activities during the years of regaining its independence. Despite this fact, the coastal reef and offshore fisheries are, according to many accounts, highly productive in terms of demersal and pelagic species, and these resources have significant economic value and potential for development of Somaliland.

The Somaliland coast is 850 km in length, which is around one fourth of the total length of the 3.300 km, pre-war Somalia. Based on fragmented data obtained from fishermen, the COOPI report on the rehabilitation of artisan fishery around Sahel and Awdal regions and observations made on several landing sites, indicate that coastal reef and offshore resources in Somaliland are highly productive in terms of demersal and pelagic species.

The principal commercial fish normally landed by the artisan fishery sector comprise of many demersal and pelagic species. The most important groups include the following families:

i.  SERRANIDAE: Groupers, Sea basses, Rock cod, Hinds, Combers, Coral trout, Iy retails and Soapfish.

ii.  CARANGIDAE: Jacks, Trevallies, Scads, Queen fish, Runners and Pompos.

iii.  LUTJANIDAE: Snappers, Job fish.

iv.  HAEMULLIDAE: Grunts, Sweet lips, Rubber lips and Hot lips.

v.  LETHRINIDAE: Emperors, Breams, Pig face, and Large eye breams.

vi.  MULLIDAE: Goatfish.

vii.  SCOMBRIDAE: Albacores, Bonitos, Kawa kawa, Mackerels, Tuna and Waho.

The coral reef of the coast of Somaliland is also habitat for other non-traditional marine resources, such as Mollascas and Crustaceans, which accidentally entangle with the nets. Though, the commercial viability of these resources is not known, giant clams, abalones and mussels seem to be prospective.

The harvesting of marine ornamental fish and coral species is another prospective industry in te coastal waters of Somaliland. A seven day biodiversity assessment undertaken between Berbera and Karin (150 km), identified the top ten world traded fish and coral species.

Finally eco-tourism is also very promising business, especially, in the vicinity of Zeila and Loado.

  Market Analysis:

One principal characteristic of the fishery sector is the highly perishable nature of the resource once it is removed from its natural environment. Bacteria and enzymes rapidly spoil the edible flesh of the fish, especially at the high temperatures that prevail through the year in coastal areas of Somaliland. As a result, both speed and careful handling are necessary in the distribution and marketing process. Fish is similarly difficult and expensive to store over long time. In many coastal areas of Somaliland, quick transportation/distribution, freezing or immediate consumption of fresh fish is virtually impossible. Therefore, current marketing opportunities are very marginal, if not impossible.

  Future local potential:

Historically, the people in this region were known for their cultural dislike towards fishing and fish eating habits. However, the introduction of modern fish processing facilitates  has had a great impact and changed the biased attitude so that today fish is increasingly eaten by urban populations in many towns.

  International marketing potential:

Somaliland fish products could potentially access the global market for fish. One emerging market is land-locked Ethiopia, with over 100 million people without their own supply of fish products. Another lucrative market for fish exists in the oil rich Gulf States. Projections indicate prospective comparative marketing advantages for Somaliland fish exports in these two regions. The only issue to be conscious about is the emerging impacts of globalization of fisheries trade in general.

Impact of globalization on the fisheries trade:

The intention is not to examine the overall impacts of globalization on trade, but at the same time, it will not be possible to discuss its impact on the fishery trade without highlighting some common issues. The technology information revolution has changed the world drastically and has become a dominant socio-economic wave affecting every corner of the planet. The Internet is changing the behavior of individuals and the arrangement of organizations, adding new dimensions to human ability and expanding the range of opportunities.

This is the phenomenon referred to as globalization. Both advocates and critics of globalization agree that it is generating considerable benefits, rapid technological improvements and offering unparalleled opportunities to advance sustainable development. Similarly, both groups concur that the benefits of globalization are unevenly distributed among the poor and rich countries.

The ability of a society to move towards sustainable development is determined by the capacities of its people and institutions. Since the capacities of the people and institutions in Somaliland are weak, fishery trade and development will not currently be competitive on the world market. In addition the fisheries trade has its own unique problems. It is a delicate commodity that spoils very quickly unless it is properly handled and it requires consistent procedures and high quality control mechanisms. In a situation where proper fish handling and storage infrastructures are completely absent, the product is unlikely to meet world recommended standards

As soon as fish is removed from its environment and until it is put in the pan, it comes in contact with a variety of mediums. Unless those mediums are hygienic, it can easily be contaminated. Typical examples of those mediums include: human contact, the deck of boats, landing and carrying boxes, handling and processing premises and packaging materials. The final and crucial factors determining the quality of fish and fish products are the standard of freezing and storage used. Internationally recommended freezing and storage temperatures of fish are between (–45º C) and (–22º C).

In the absence of ice, freezing and storage facilities, and poor awareness in terms of fish recommended quality control standards on the side of the fishermen, the prospects for the development of the fishery trade in Somaliland is weak. In particular, the standards defined by the developed world are difficult to meet. In European countries for example, fish importing agencies need to present a EUR 1 Form, which provides minimum allowable contents of bacteria and other hazardous substances. At this stage it is difficult for the Somaliland exports to live up to those defined standards, especially since there is a lack of authorized veterinarians to certify the products. In conclusion, the barriers are so many and complex, that access to markets like Europe is difficult, if not impossible.

  Constraints facing the Fisheries Sector:

Somaliland possesses rich fishing grounds along its northern coast, which could potentially support a developing fishing industry and contribute to the national food security and socio- economic wealth. The maximum potential catch that could be harvested from Somaliland’s marine resources is estimated to be between 90-120,000 MT a year. But currently less than 5 % of that quantity is harvested by the Somaliland nationals.

Some of the major constraints impeding development of the fishery sector are as follows:

  Natural Obstacles:

The coastline is relatively straight and lack natural shelters, protected anchorages and landing sites for artisan fishery. There used to be simple jetties in Zeila, Mait and Las Qore before the war. The jetty in Zeila was made of rocks and cement concretes, but filled by sedimentation. Mait and Las Qore jetties were made of concrete pillars dug in to the sea and roofed by wooden planks. However, currents and lack of maintenances have ruined these facilities beyondrepair.

Climatic and oceanographic conditions, and shifting winds cause unpredictable currents and waves, which pose a constant threat to the fishing fleet. Prevailing high temperatures through the year, high humidity and the difficulty in accessing the richest fishing areas accelerate fish spoilage and reduces chances of selling catches.

Technical Problems:

The lack of ice, freezing and cold storage facilities limit the opportunities in the fishing businesses along the entire coast. A number of development initiatives, intended to enhance the fisheries sector were implemented during the Siad Barre regime with international assistance. The most significant development initiatives were the 400 metric ton fish handling cold storage in Berbera, which supported the efforts of FAO/ UNCDF fishing centers in Zeila and Berbera to upgrade artisan fisheries in the area. Another major input was the 400 MT cold storage funded by DANIDA in Berbera in1986.

Since 1994, limited assistance from COOPI enabled artisan fisheries in Berbera and Zeila to resume fishing activities. COOPI rehabilitated the two fishing centers in Zeila and Berbera, but the amount of ice produced by these two centers is not enough to cover the needs of the vessels. The problems of the Berbera Cold Storage has not been addressed and has reached a point where its rehabilitation seems impossible.

Another serious technical problem is rooted in the introduction of GRP motorized boats in the 1980’s. As traditional fishermen lack experience in engine and boats hull maintenance, the scarcity of appropriate workshops with qualified technicians, absence of local shops selling engine spare parts and nets are curtailing the smooth running of the fishing activities. The spare parts are usually over-priced and much time is lost in waiting for delivery, leaving many vessels idle for long periods of time. The cumulative impact of these problems reduces the durability and efficiency of GRP boats in general.

6.2  Organizational Problems

Problems in this section are rooted in the political arena of Somaliland. Since 18, May 1991, when Somaliland declared its independence, it has not attained Formal Diplomatic

Recognition. In addition, the fishery sector faces some unique problems as discussed, which are not shared by other productive sectors of the country. The poor general knowledge of fishery and understanding of the problems in the sector, also contributes to the lack of appropriate data records in the sector and reluctance of private sector investment. Finally, the lack of formal organizational structures, in the form of fisheries cooperatives and the existence of parallel authorities competing with each other, weakens the position and prospects of the sector.

Fisheries data collection:

Another severe problem for the fishery sector is the total lack of statistical data, which could provide the basis for private sector investment. Though, the Ministry of Fisheries and Coastal Development is responsible for data collection, very little has been achieved in this aspect. The problems include, lack of qualified personnel and basic equipment for data collection within the Ministries. It is difficult to manage resources properly without having accurate information on stock sizes, their dynamics and the environment they derive from.

To collect this data, basic primary indicators need to be defined and appropriate measuring boards, scales and species identification catalogs need to be provided to data collectors on the landing sites. During the coastal survey in May 2004, data was collected from Berbera, Lughaya and Zeila under the project “Living Marine Resources Management” funded by GEF and implemented by the Ministry of Fisheries.

  Government Policies and Development Strategies:

Somaliland was emerging from 30 years of political suppression and economic marginalization when it declared its independence on 18 May 1991. The immediate challenges included securing peace and stability in the country; developing functioning administrations in all regions, and rehabilitating the devastated physical infrastructure as a way to revive the shattered economy. Though, the government has reached tangible achievements in the first two areas, the limitation of available financial resources has curtailed the development of the poor physical infrastructure, which again has discouraged domestic and foreign investors.

Policy Objectives:

The policy objectives of the strategy for the Somaliland Ministry of Fisheries and Coastal Development is as follows:

·  Maximizing the output of the sector in order to raise the income levels of local fishermen.

·  Creating new employment opportunities in the fisheries sector;

·  Earning more foreign exchange through the export of fishery products;

·  Increasing consumption of fish in the local market.

It is generally acknowledged that the most effective development strategy is to make sure that the fishing industry and its development is led by the private sector, while oversight and resource management is handled by the public and/or academic institutions.

 

  Enhancing the legal framework:

The Ministry of Industry and Commerce has formulated other legal frameworks intended to enhance economic growth and attract private investment, including the Foreign Investment Law and Company Law. These Laws are formulated in the context of the emerging impacts of globalization and designed to create a favorable climate for domestic and foreign private investment. It establishes incentives for investment, including property rights protection, institutional arrangements, defines conditions for investment, investors rights and attempts to reduce the cost of bureaucracy.

In order to promote production, improve living conditions of the people and create job opportunities Somaliland has chosen the promotion of a free market economy as its economic policy. To achieve this objective, the government encourages national and foreign investment in the productive sectors.

The Foreign Investment Law comprises of 25 articles aiming at, promoting, protecting and guaranteeing all forms of foreign investments and personnel. It defines forms of foreign investments and investment priority sectors; establishes Somaliland’s Foreign Investment Board and describes its functions. The Law defines procedures for submission and approval of applications and details procedures of investment, transfer of capital and profits.

The Company Act of Somaliland is a lengthy document touching upon all forms of private and public companies. Part one and two deals with the formation and registration of companies, juridical status and membership. Part three deals with capital issues; Part four deals with allotment of shares and debentures; Part five deals with share capitals, its increase, maintenance and reduction.

In its endeavor to promote an open door trade policy, the government is trying hard to create a Free Zone area in Berbera, introduce the “Build Operate-Transfer” procedures; and to join regional and international cooperation schemes.

Thus, the recommended strategy for development of artisan fisheries is composed primarily of two core components: the establishment of fish processing facilities and efficient transportation mechanisms, and the development of an adequate institutional framework to deal with private sector investment.

The government of Somaliland proposes to launch a series of initiatives, with the assistance of the international community, to support fishing communities and the private sector and to foster development strategies in the fisheries sector. Establishment of appropriate institutional mechanisms will facilitate the right platform on which to build business relations between Somaliland entrepreneurs and fishing communities and to encourage regional and international private company’s partnerships.

·  The first task is to identify prospective national entrepreneurs or companies interested in developing the sector.

·  The second task is the forging of close business relations between these companies and the coastal fishing communities.

·  The third task will be to identify suitable foreign partners to participate in fisheries investment on a commercial basis (joint- venture agreements).

Agriculture Sector:

In Somaliland farming contributes between 8% and 15% of the GDP. It is estimated that less than 10% of the land is suitable for agriculture farming. Despite being erratic and often scanty there are nevertheless two main rainy seasons. These are Gu or Spring (April and June) and Deyr or Autumn (September and October), in between these two rainy seasons there is also Karan (late July through September) which mostly occurs in the western regions.

The farming in Somaliland is predominantly subsistence in nature. The principal grain crop grows under rain fed conditions is sorghum, followed by maize; and both crops are grown primarily for household consumption by small-scale farmers. Fruit and vegetable crops, which are relatively small, are grown mainly for commercial purposes and the principal commercial crops are tomatoes, lettuce, onions, watermelon, peppers, cabbages, oranges, lemons, and papaya. Rain-fed farming accounts for 90% of the total area cultivated, while the area under irrigation constitutes only 10%.

The sector is dominated by smallholder farmers who own farms ranging from 2 to 30 hectares in area. The average farm size is approximately 4 hectares. During the dry season, irrigated farms make good profits, because the supply in the vegetable and fruit markets is low during this period. The shortfalls are usually filled by imports from neighboring countries such as Ethiopia and Somalia. In recent years, cultivation of watermelon, oranges have emerged as an important source of income for the farmers.

Mining Sector:

The mining sector in Somaliland is new and can be otherwise be considered to be virgin. Over the years, it was neglected and ignored. It has an immense potential and there are countless opportunities to those who intend to invest in Somaliland. Known deposits include salt, oil, limestone, gemstone, coal, copper, gold and gypsum.