African Entrepreneurship Record

Chapter 635: Chapter 313: Somali Fisheries Outlook

”Apart from tropical fruit and vegetable cultivation, the northern province and Juba province boast a coastline stretching over 1,300 kilometers, yet our use of fishery resources in the economy accounts for less than one percent. This is a tremendous waste, and the development of fishery resources should be prioritized,” said Roman Karin, governor of the northern province, to the mayor of Mogadishu.

Developing Somali maritime fishery resources has always been a matter close to Roman Karin’s heart. Being from the small coastal city of Monfalcone in Austria, he has a strong affinity for the sea.

The mayor of Mogadishu, Clarnis, also agreed on this point. Originally, Mogadishu was a comprehensive port in East Africa, with fisheries being a major economic source. However, in recent years, more resources at the Port of Mogadishu have been used for foreign trade vessels.

”Governor, developing fishery resources inevitably requires essential facilities like fishing boats, and in this regard, our shortcomings in Mogadishu are quite apparent. Especially when it comes to resources, we might naturally be ill-suited for industrial development,” said Clarnis.

Mogadishu’s water supply mainly relies on the Shabelle River, but most of the river’s water is used for agricultural irrigation. From the start, Ernst did not intend to develop industry in the Somali region. Furthermore, as a frontier province, East Africa would be unlikely to place important industrial developments here, unless it’s agriculture-based industries such as agricultural product processing.

Aside from insufficient water resources, other resources are also relatively scarce in Somalia. For example, the forest cover rate only reaches about fifteen percent, mainly distributed in the Ethiopian mountainous parts bordering Turkana Province, which is relatively low for East Africa.

It is now the late 19th century. In the first half of the 19th century, the world’s ships mainly relied on natural wind and manpower as the main driving force, with shipbuilding materials mainly being wood.

Even now, the wooden shipbuilding industry still firmly holds a primary position in shipbuilding, with large amounts of steel more frequently used for warships or by strong shipping companies, whereas wooden shipbuilding is more focused on small to medium-sized vessels. Somali forestry resources clearly cannot support the traditional wooden shipbuilding industry.

As for the emerging shipbuilding industry, the Somali region faces issues of insufficient resources like coal and iron. This is not to say Somalia lacks minerals but that it is not currently worthwhile for the East African government to develop them.

Many areas in Somalia are deserts, and mining naturally faces environmental issues. This isn’t about worrying over environmental destruction but solving problems like water scarcity. Mineral distributions won’t necessarily be concentrated along with the population in the Two Rivers (Shabelle River and Juba River) areas.

Of course, Somali coasts can also learn from Dar es Salaam and Mombasa by importing iron ore or coal from the Middle East or India to develop industry, but this circles back to the existing policy constraints on industrial development in the Somali region.

Thus, if Somalia wishes to resolve industrial development issues, it must revolve around agriculture, developing agricultural product processing industries, and the food industry.

Agriculture also has significant value for development. For example, the currently prosperous Argentina relies on agriculture and animal husbandry. With British capital backing, Argentina’s railways and industries have rapidly developed, all revolving around agriculture and animal husbandry and serving them.

In the late 19th century, with the growing international demand for wool and the development of refrigeration technology, Argentina’s wool, beef, wheat, and other agricultural exports soared, becoming one of the leading agricultural exporters worldwide.

In the previous era, relying on robust agriculture, by the early 20th century, Argentina had become the world’s seventh-largest economic power and the fifth largest exporter, with wealth even surpassing the United States.

Yet, under East Africa’s influence, Argentina naturally didn’t develop to the previous level. In terms of population, Argentina in the former era was the second-largest immigration destination in Europe next to the United States, but with East Africa, Argentina only ranks third. Between 1865 and 1880, immigrant numbers approached only half a million and mainly from countries like Italy.

As for German immigrants in this period, more than sixty percent were absorbed by East Africa. This was primarily because, in the early stages, East Africa couldn’t absorb most of the immigrant population. The 1873 economic crisis was a turning point when East Africa officially replaced the United States as the world’s largest immigration destination, with German and Chinese immigrant contributions exceeding sixty percent.

In other words, East Africa snatched up millions of immigrants from Argentina and the United States, particularly over two million potential German immigrants from the U.S.

Nevertheless, this did not hinder Argentina’s overall economic development. Argentina’s economic foundation still relies on its excellent geographical conditions, being a natural agricultural powerhouse. Its railway development is not much behind East Africa’s, at least leading in density.

Somalia’s conditions naturally cannot compare with Argentina. However, its irreplaceable geographic advantage is unmatched by Argentina. Within East Africa, Somalia belongs to the first-tier, directly connected to the main shipping lanes of the world’s two major markets, Europe, and Asia, bypassing the Somali region, regardless of whether the Suez Canal exists or not.

”Juba Province and the Northern Province have long coastlines with world-class natural fishing grounds. Although they can’t compare with top-tier world fishing grounds, disregarding those, the Somali coast securely ranks second tier, rich in various fish like tuna, mackerel, anchovies, sardines, and sharks. These are God’s gifts to East Africa, so the development of fishery resources in the Northern Province should be expedited. Mogadishu, as the provincial capital and the first major port city in the Northern Province, needs to put in extra effort to enrich local industries as much as possible,” said Roman Karin.

Clarnis: ”We, Mogadishu City, can only say we’ll do our utmost. However, there are too many restrictions due to current conditions, especially around completing the tasks of the ’Europe-Asia Fruit Basket Plan,’ and we can’t secure effective financial guarantees.”

Roman Karin: ”There’s no need to worry too much about this. The provincial government is applying to the central government for a new round of investments in Mogadishu City. We will focus on negotiating with the Austrian government, organizing Austrian businessmen to visit Mogadishu City.

However, the central government is still discussing it. This time, the focus of the ’Europe-Asia Fruit Basket Plan’ is on related infrastructure construction. The improved infrastructure level should attract the Austrian business community somewhat, so you should first methodically resolve the infrastructure issues.

As the saying goes, opportunities go to those who prepare. To forge iron, one’s own strength is crucial. Only when our Northern Province enhances its hardware and services will others see our potential and be assured to invest.

Therefore, besides improving infrastructure construction, the government of Mogadishu City must prioritize building a harmonious business environment to instill confidence in future investors coming to Mogadishu.”

Without funds from the central government, the Northern Provincial government can only attempt to attract foreign investment. In this regard, East Africa’s northern industrial zone and the three already-established open coastal ports provide a model.

Austrian businessmen are particularly keen on investing in the three coastal cities of Dar es Salaam, Mombasa, and New Hamburg Port, whereas Mogadishu only gained open status last year.

Somalia’s abundant fishery resources are a crucial lure for attracting foreign investment into Mogadishu City. This also involves commercial channels, which the Northern Province government naturally cannot resolve, relying on Austrian capital to expand relevant markets. The Northern Province’s own market is too small to address this issue, and as for the domestic market, this involves transportation issues.

Somalia’s transportation primarily relies on two rivers and maritime routes, forming a horizontal distribution that’s not directly connected with the vast East African inland areas, thus unable to compete with Mombasa City, Dar es Salaam City, and New Hamburg Port City.