Has the Pland government gone mad?

[Nationalist]

I just found out about a business deal made between the governments of Pland and Ethiopia. I believe this deal is a total outrage if it's all that meets the eye. It might be a steppping stone to good trade links between Pland and Ethiopia or there might be even advantages for Pland that this article doesn't show.

Is it me or has the Pland government disappointed us since the 10 october election of former Pland president Abdullahi Yusuf? Perhaps I should give Muhammad Abdi Hashi more time, but how much time does the old chap need?

 

Article: http://allafrica.com/stories/200411170338.html

 

AllPuntland on this matter: http://allsomalianews.com/news1/news/news_item.asp?NewsID=3280

 

Dinsho to Awash Puntland With Ethiopian Khat

 

Addis Fortune (Addis Ababa)

 

November 14, 2004

Posted to the web November 17, 2004

 

Bahru Temesgen

 

An Ethiopian company involved in the export of khat to neighbouring Djibouti, Biftu-Dinsho, has entered into a landmark deal with a company based in the self-styled autonomous region of Puntland to export khat worth 270,000 dollars a day.

 

This is the first time that an Ethiopian company has entered into the Puntland market, which has a population of 2.5 million. Puntland is a region located in north-eastern Somalia centred on its capital Garoowe. For the past 15 years it has tried to survive as a pocket of stability in the collapsed state of Somalia. It was notable for the few days of independence it enjoyed in 1960.

 

Following the demise of the government of Siad Barre in 1991, war-torn Somalia disintegrated and fell into the hands of several warlords. Seven years later, however, in Puntland declared autonomy under the leadership of Abdulahi Yusuf.

 

Abdulahi was accorded head of state treatment in Ethiopia two weeks ago during a working visit, after he was elected as president by a newly constituted parliament gathered in Kenya's capital, Nairobi, to re-establish the state of Somalia. He has been waiting to move to the troubled capital of Mogadishu, where security has yet to be guaranteed for the safety of the new government's leaders.

 

Although the sight of people carrying guns is normal in the streets of Garoowe, residents claim their city is one of the safest places in Somalia.

 

"It might look scary for an outsider," said Jama Dualle, a Somali national in Ethiopia, but he told Fortune that in today's Puntland one can even see businesses growing, despite militias walking around market places carrying their guns. "But as far as the Somalis are concerned, whether the gun is shooting or silent has simply become a part of daily life."

 

It is the growing market, partly supported by 800 million dollars remittance revenue, that Biftu-Dinsho aims to grab. It signed an agreement with SOMEHT, a private company in Garoowe, on November 03, 2004, to export close to 7,000Kg of khat to Puntland.

 

A business delegation from Puntland, led by Abdi Nur Elemi, minister of Commerce and Industry, was in Addis last week to establish a trade link with Ethiopia through Biftu-Dinsho, an endowment company affiliated with the ruling party. It was established in 1994 with an initial capital of 7.9 million Br and has its headquarters in Western Harargie, Chiro town. Dinsho Plc, one of the five shareholders, controls 50pc of the Company while Shiferaw Jarso, minister of Water Resources, owns a single share that has a value of 1,000 Br.

 

Invited by Puntland's administration, managers of Biftu-Dinsho, together with a parliamentarian observer, visited Garoowe in July 2004. They concluded a memorandum of understanding for SOMETH to supply the Ethiopian company with fish and sea products, gums, semi-processed hides and skins as well as edible salt. In exchange, Puntland has agreed to import livestock (cattle, goats and camels), khat, tea and sugar, vegetables, spices and other agricultural products from Ethiopia.

 

This has been taken as a historic move for both parties in the effort to build a stable and peaceful Somalia, according to Medhane Tadesse, a specialist on the Horn of Africa. He has noticed that a dynamic and powerful business class has been emerging in the hidden economy of Somalia over the last seven years.

 

"It is dynamic because political power is being shifted from warlords and militias to the private sector," he told Fortune.

 

Apart from the absence of tax and the existence of a porous border, the Somalis' entrepreneurial skills have enabled them to integrate into the economy of the Gulf States, said Medhane. Paying attention, as well as drawing out the cooperation of this sector, will eventually put the bilateral relations with Ethiopia on a firm footing. He reminded the Ethiopian banking sector to consider Somalia's estimated 800 million dollars remittance economy, and advised the business community to make business with them.

 

Wegagen, a private bank also affiliated to the ruling party, seems to be the first to have embarked onto this potential market Medhane said is emerging.

 

SOMETH has agreed to transfer payments five days prior to Biftu-Dinsho exporting the khat and this will be renewed every three days. The Company will make the transfer through Dahbshi and Amel, international money transfer companies, whose Ethiopian agent is Wegagen Bank.

 

A private air service from Djibouti, Djibouti Airways, is in negotiations to provide charter flights to SOMETH to transport the product from Dire Dawa to Bosasso via Garoowe. The Ethiopian office of Djibouti Airways confirmed to Fortune that the deal is in progress, although the arrangements have not yet been fimalised.

 

This is not a deal without opposition. Other khat exporters, based in Dire Dawa, seem unhappy about the exclusive deal the two companies have entered into.

 

Absheye Elmie, chairman of the Ethiopian Khat Exporters in Dire Dawa, voiced his dissatisfaction with both parties that the deal undermines the basic principles of a free market. There are about four khat exporters in Dire Dawa who export to Djibouti. Biftu-Dinsho is one of them.

 

Absheye said Biftu-Dinsho is trying to amass all the business transactions alone, under a pretext that everyone is entitled to do business in a free market. He alleged the business agreement between Biftu-Dinsho and SOMETH is politically driven. A representative of the Dire Dawa Chamber of Commerce said they are not officially aware of the agreement.

[LANDER]

For the past 15 years it has tried to survive as a pocket of stability in the collapsed state of Somalia. It was notable for the few days of independence it enjoyed in 1960.

Is it just me or has Puntland perceivably achieved one of its goals that is of being synonymous with Somaliland and even being confused for it . I due have to give credit to their propaganda machine as nowadays people who are somewhat oblivious to the differences in the foreign press usually can make the mistake of equating the two and hence the following confusion.

[NGONGE]

^^^^^^ I assumed that the article was about Somaliland, saaxib. The words “Puntland†and “ I’m outraged†don’t often come out of Nationalist’s mouth, you see.

[Nationalist]

Perhaps not Ngonge, but suffice to say that you should not mistake me with some of the dimwits here.

 

Here is another topic of mine about Pland. Link to thread

It's negative, perhaps just the way you like it. I might be mistaken of course.

 

Lander, have you noticed as well? I can name numerous of articles in wich Pland is described as a breakaway republic.

I can say with an absolute certainty that it's not Pland's goal to be equated with Sland. I would say it's more of a disastrous blow to our patriotic image to be synonymous with Sland.

 

[BN]

Originally posted by Nationalist:

I would say it's more of a disastrous blow to our patriotic image to be synonymous with Sland.

Agreed.

[Gabbal]

Originally posted by Bari_Nomad:

quote:Originally posted by Nationalist:

I would say it's more of a disastrous blow to our patriotic image to be synonymous with Sland.

Agreed.