Industry Association:

The manufacturing sector in Somaliland is currently confined to light industry base activities that have been established in the past few years in various parts of the country. Such small-scale manufacturing facilities include Somaliland Beverages Industry (SBI), mineral water, hides and skins, detergents, aluminum, foam mattresses and pillows, fishing boats, carry out packaging and food oil. These are all locally made products that serve the needs of the local population. Also, new factories are under consideration reflecting increasing investor confidence in the atmosphere of security and stability existing throughout of the country.t

Industry sector 

There is a association called National Industry Association (NIA)

Background 

National Industry Association (NIA) was founded in 2003 by a group of entrepreneurs recognized the need for a unifying organization that is representing all local industries in Somaliland.

The national industry association is registered with its line-ministry of industry, under the article 23 of Somaliland national constitution.

The NIA is an independent, non-political, non-governmental and non-profit making organization which is funded entirely by its members. It acts as an umbrella representing all individual factories that operate in Somaliland.  

NIA started with fifty six (67) light and medium industries and has become integral part of Somaliland manufacturing sector and is dedicated to the development and promotion of local industries.

NIA is the first and only of industrial association that has been established in Somaliland and its priority is build industrial sector.

Vision:

The national industry association vision is to be the regional leading association that is dedicated to influence the future direction of Somaliland industrial sector, through promoting, developing, innovating and protecting the interest of local industries.   

Mission:

The national industry association mission is to be the first organization for industry stakeholders and associated groups in relation to any and all matters affecting Somaliland industries. We aim to strengthen our member’s long-term interest and prospects in the increasing competitive local market place. NIA provides leadership, expertise, and independent influence in the areas of product safety, performance, energy efficiency and sustainability.

NIA advocates the industrial firms sector by offering technical support, mobilizing industrial knowledge, skills and appropriate information. We also strive to establish technological facilities to create job opportunities and to improve industrial sector as a competitive and safe industrial environment.

Core Value and Principles:

Ø  Commitment.

Ø  Reliability.

Ø  Transparent ad trustworthy.

Ø  Honesty.

Ø  Integrity.

Ø  Efficiency.

Ø  Creativity.

Ø  Fairness.

The Structure of NIA:

The national industry association is registered with its line-ministry of industry, under the article 23 of Somaliland national constitution. NIA is an independent, non-political, non-governmental and non-profit making organization which is funded entirely by its members. It acts as an umbrella representing all individual factories that operate in Somaliland.

The election of the board:

Somaliland light and medium industries come together once a year to choose a new board. The elected board controls the association, and within the board the chairman and vice-chairman are elected.

The functions of the Chairman:

Duties include:

The Chairperson of national industry association responsibilities is leading the board members, and he presides at all board member meetings contacting, informing and briefing the board members. The chairman represents the association in its dealings with other organizations or people outside the association.

Vice-chairman:

Duties include:

• Performing the duties of chairman in his absence and assisting as needed.

The general Secretary:

The chairman appoints the general secretary and submits to the board members in order to be approved. And once the board approves he becomes an official member of the association.

The functions and responsibilities of the general/secretary are as following:

Ø  The day-to-day activities in the office managements.

Ø  Responsibility for all correspondence and recording of minutes of meetings, communicating them to each board member.

Ø  Preparing agendas for meetings in consultation with the chairman.

Ø  Ensuring that notices of meetings are sent to association members as required.

Ø  Maintaining records of the association members.

Ø  Devising and implementing strategies for increasing membership and participation.

Ø  Overseeing monthly membership subscription.

Ø  Responsibility for the finances of the association, for maintaining accurate records and for preparing an annual statement of the association’s accounts.

NIA sources of finance:

The financial income of the national industry association comes from the following sources:

Ø  Registration fee.

Ø  Monthly subscriptions.

Ø  Service fee.

NIA members:

The Association of Somaliland Manufacturers is an umbrella group which represents all manufacturers in Somaliland. The association consists of 24 factories. It is an independent, non-political organization that advocates for strong manufacturing industries in the country.  The Association offers its members a podium to collectively present their ideas, voice concern and offer suggestions on relevant issues. It provides a linkage between the industry, the Government and the society. It interacts with the policy authorities and industry associations to develop and maintain harmonious and conducive business conditions.

These industries are locally invested by individuals. There are no mechanisms for local and international investors to invest these industries. Out of the 67 manufacturing firms that formed the association, 31 of them are now closed for financial and technical reasons. However, another new twelve firms are under process and about to start operations.

Generally, it intended to take part in the industrial development, by means of developing the private-owned factories, such as promoting their local marketing research and to improve their products.

Objectives and Responsibilities:

Ø  The objectives and responsibilities of this association (NIA) are to provide and insures that the government gives the local produced goods tax exemption for their raw materials.

Ø  Representing all private-owned firms and national crafts trade professions with the purpose of protecting their interest and promoting their professionals, by advising their corporation between the industries and the government to achieve a comprehensive network.

Ø  Intending to take part in Somaliland development by means of developing the owned factories by promoting to get suitable market for their local production in order to encourage local investment and to minimize the importation of foreign products to save the hard currency going out from the country.

Ø  To develop and maintain the national technical informative centre to assist the association, and their workers on all matters of industry management, employment, legislation and all other relevant matters.

Ø  Ensuring that the member firms of the association are run on common guidelines, and thus create mutual solidarity among factories at each place of work.

Ø  Acting as centre of communication for the national private industrial firm’s activities.

The Roles of NIA on local investment of Industrial

Development:

The ultimate roles played by (NIA) in industrial firms development and local investment are very important, the national industry association (NIA) always ensures that the factories in Somaliland are in a cluster-with the assistance of their support institutions, benefit from larger sale volumes, lower cost of products, rather than the abroad, improves skills of workers, consults the factories to increase the quality of their products, and enhance productivity.

As a result of arranging joint activities in areas such as marketing (e.g. share sales and staff, share showrooms, share specialized, experts and equipment or processing facilities), NIA supports its member firms in the formulation and implementation of overall industrial firm’s strategies conductive to strengthening private sector development and promote small and medium-sized factories in Somaliland, which play a leading role in creating employment, income and value added industry.

Achieving this implies dealing with issues that often go beyond the scope of the owners of firms. Consequently, the privately-owned sector of factories must corporate, complementing each other’s development and resources. In order to bring about and guide this cooperation, NIA has developed multi-stakeholder and partnership approach. Hence, NIA usually works for long-term survival and profitability that firms required in order to  improve  their performance, and continuously  stay ahead of competitors by focusing on following areas:-

Areas of Focusing:

ü  Training and seminars to strengthen human resources capacities

ü  Organizing and implementing business fairs in the country and others in the neighboring countries.

ü  Preparing and allocates the strategies to get foreigner markets for the local manufactured goods.

ü  Study tours within, and outside of the country.

ü  Assistance for pre-feasibility studies of the industrial firms projects.

ü  Improvement of legislations and bylaws.

The successful participation of Somaliland light and medium firms and  their association (NIA) gives the factories,  the importance of capability and capacity to innovate new products similar to  the ones that the exporters bring to the  country, because  this entails to compete and enhance their productivity, that can lead to the gain of know-how, skills and expertise, and contribute to their sustainable development, not only with the regard to their economy, but also to their environmental and social performance.

NIA developments in industrial firms sector needs to be seen as an integral element for overall economic and industrial development – and not as a subject matter in its own right. So that, it encourages the local and Somaliland Diaspora to invest in their own country in many aspects.

Encouragement of NIA on local and foreigner

Investors:

NIA has set the policy and suggestions of the local investment law and submitted to its line-ministries. The law governs the local industrial firm’s policy an all aspects of its growth, with the exemption of taxation (free custom duties) from the period of growth, and NIA has done these, in order to increase and attract Somaliland investors and even the foreign investors. The encouragement made by NIA to its entities is as follows:-

Ø  The industrial firms sector expects encouragement and assistance from the government by increasing customs duties on all imports goods which are similar to the locally manufactured goods.

Ø  Discourages and bans all duplications for new applications for factories to produce similar goods being produced already.

NIA Services:

The national industry association’s service is to help and design to develop the industrial firms sector, such as good leadership, technical support. It also mobilizes knowledge, skills, information and technology to promote productive employment, and to be a competitive economy and sound business environments. The other services it provides to its members including:

Ø  Somaliland national industry association (NIA) and its member of firms provide their products and services in a reliable market, and as well as foreigner markets. But the foreign products take a big share of the market. Although Somaliland is free market economy. However, the association prepares the strategies that the government should be interfered the foreign goods by imposing on a high tax to their products which are similar goods are produced locally.

Ø  Providing mediation for the resolution of disputes within, between or among members in the firms, when specifically delegated to do so by the disputed members.

Ø  Acting as centre of communication for the national private industrial firm’s activities. Consultancy services for problem solving with useful information in response to needs of privately-owned factories.

Core function and services:

NIA’s assistance is delivered through two core functions:

v  A normative as consultancy to all its members.

v  Operational function such as technical support and corporation.

NIA Partners:

• Ministry of Industry.
• Ministry of Finance.
• Berbera port Authority.

Achievements:

• Networking of local industries.
• Advocacy.
• Capacity building.