OP-ED: Somali business community has failed to take pro-active steps in political processes and state-building 

By Hassan Mohamud

Despite the huge influence and financial muscle, thanks to standing in place for the government for several decades, the Somali business community and especially industry movers have not leveraged their economic power in productive politics and state-building.

Some have instead compromised political processes through various antagonistic schemes to undermine the state-building processes and serve their narrow interests. In a similar vein, some of these traders, though have benefitted from an open market policy, have worked to counterman the same open policy through deliberate de-liberalization in form of monopolies and oligarchic tendencies.

Once a budding democracy, Somalia got stuck in a time warp that cut short a futuristic dream of prosperity and democracy since the second decade of independence. What followed next for over four decades was a return to the dark which nipped in the bud institution growth, rule of law, democratic spaces and social and economic growth.

FILLING THE VOID

During this period, however, a critical component of nation-building- the business community stepped in to fill the void. The government was absent while civil society occupied the margins. The government, which ideally has the monopoly of conflict and maintenance of public order through rules, laws and enforcement mechanisms was forced to abdicate its role leaving it to an amorphous collection of bodies such as warlords, terrorists, and clan militia.

While the various non-state armed groups jostled for power and influence, the business community build an empire providing goods and services, running schools, hospitals, utility services such as water, electricity, telecommunications, and even built roads to connect communities. In effect, this new state-within-a-state framework became a model of how to live without a government. In fact, some East and Horn of Africa countries would soon become envious of Somalia as it boasted some superior services such as the internet which has been billed as the cheapest in the continent.

In a similar vein, some of these traders, though have benefitted from an open market policy, have worked to counterman the same open policy through deliberate de-liberalization in form of monopolies and oligarchic tendencies.

Additionally, the business sector has become the largest single employer in the country. The Federal Government has an estimated 7,000 staff base while the Federal Member States combined count for about half of these numbers. With youth unemployment standing at about 67%, some of the youth find their way into the business sector while a majority of them remain without a source of income. Besides providing employment opportunities, the business community has been instrumental in humanitarian response during droughts, floods, and conflicts.

PROTECTING STATUS QUO, UNDERMINING STATE-BUILDING

Despite these positive contributions and taking into account the challenges inherent to doing business in Somalia from insecurity, absence of strong legislative and policy frameworks to inaccessibility to international markets among other bottlenecks, the business community has not taken proactive steps in the state-building process. If any, some have worked to undermine it and create a dysfunctional system to allow their businesses to thrive.

From corrupting and colluding with government ministers and lawmakers to delay and strangle certain legislations to guaranteeing ministers steady income on condition they secure them long term contracts to undermining enforcement of certain policies and legislations, some power barons in the business sector have created and maintained an aura of confusion, lawlessness and weak structural systems which ensure their uninterrupted expansion and influence.

According to the 2021 National Budget, domestic revenue, largely from the business community stood at $270 million translating to about a third of the $680 million budget. This contribution affords the business community the influence, power and leverage to shape up the country’s state-building process for the greater common good.

Business firms also allocate economic resources to political leaders such as line ministers of particular industry sectors to sustain non-competitive market practices instead of championing national laws giving business rights to operate and maintaining financially healthy markets.

DELIBERATE OR SIT-BACK APPROACHES

The business community has also either taken a laid-back approach or deliberately chosen to stay out of key political processes. Hardly has the business community stood up and demanded space in consultative forums where political leaders deliberate consequential political matters. For instance, the current electoral cycle has been characterized by several political engagements but the business community has been conspicuously missing.

In other jurisdictions, the business community robustly informs political processes through joint memoranda, direct participation in meetings, sponsoring bills for a better business environment, and even taking stances on adverse political developments in the country.

However, all is not lost. The business community especially industry leaders can still seize the moment by taking the front seat in deciding the country’s destiny. According to the 2021 National Budget, domestic revenue, largely from the business community stood at $270 million translating to about a third of the $680 million budget. This contribution affords the business community the influence, power and leverage to shape up the country’s state-building process for the greater common good.

The author can be reached via: [email protected]