Agriculture

In Somaliland agriculture contributes 15% of GDP and is currently the second most important economic activity in the country, coming after livestock, with up to 20-25% of the population depending on it for their livelihoods. Though an underdeveloped sector, it has a considerable potential, especially for both cereal and horticultural production, and for the creation of employment opportunities, mainly in the rural areas.

As stated above, the majority of Somalilanders (about 85%) are agro-pastoralists who practice rain-fed farming. Agro-pastoralists typically raise small herds of livestock out of which they sell milk, ghee and live animals. This way, they are able to generate most of the cash they need for purchasing other essential goods such as sugar, vegetables, cooking oil, clothes, and medicines. Some cash is also earned from the sale of surplus grains, especially in good harvest years.

The agricultural system in Somaliland is predominantly subsistence in nature.  The principal crops are sorghum and maize grown mostly for household consumption.  Fruit and horticultural farming, which is relatively small, is mainly commercial.  

Farmers mostly grow tomatoes, lettuce, onions, 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%, supporting about 4,000 farm families. 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 as the supply in the vegetable and fruit markets is low in this period. The shortfalls are usually filled by imports from neighbouring countries such as Ethiopia and Somalia. In recent years, cultivation of watermelon has emerged as an important source of income for the farmers. Presently, watermelon is the only fruit crop that is exported successfully to Djibouti.

The two main agricultural seasons in Somaliland are: Gu (rainy season) from April to June and Dayr (Autumn) from September to October-November though the amount of rain during Dayr is often not sufficient.

Cereal Production

The relatively high rainfall areas of the plateau regions (Awdal and Waqooyi Galbeed as well as Odweine) suitable for sorghum and maize production constitute the food basket of Somaliland. Rain fed agriculture is practiced around Gabiley, Borama and Hargeisa. It is characterized by low inputs, which is a traditional low risk practice for staple food production under erratic rainfall conditions. Cereal crop production serves a dual purpose by meeting both human consumption and livestock feed needs. Extra production obtained from extended land put under cultivation or better rains in the critical period of production, is normally destined to the local market or stored as stocks to cover future household needs. Post-harvest residues are cut and stored as animal feed. The stalks of crops that fail to mature are also used as animal feed.

The statistical data available for cereal crop production in Somaliland is shown in table below. The average annual cereal production (sorghum and maize) is estimated 11040 metric tons (MT) grown in an area of approximately 26700 hectares.

Source: Ministry of Agriculture (MOA)

There are no formal agricultural financing arrangements for investment and procurement of farm inputs.   Recent surveys have indicated the dire need for farm credit packages.   Few farmers who have had access to farm credit from revolving funds have recorded better performance than those without access to such credit.  However, there exist some opportunities that need to be exploited in Somaliland’s agriculture sector.  These opportunities include:

• The existence of some irrigation potential for productivity improvement and increased production on untapped land and water resources potential.
• Potential for additional arable land that can easily be rehabilitated through soil and water conservation practices for better agricultural performance.
• Untapped domestic and export market opportunities, especially for horticultural and cereal crops.
• Investment capacity within Somaliland Diaspora and local citizens, especially for the food and agro-processing industry with the existence of unexploited agricultural development possibilities that have the potential of attracting foreign investment.

Somaliland – Crop growing Calendar

Modified from: FAO/SWALIM; Land suitability in selected areas in Somaliland. Project report n° L-06, July 2007

Opportunities for Investors in Agriculture sector

Several problems have been listed above for this sector. But it is in the solution to these problems that opportunities exist for Investors. Local demand can be met through increased agricultural investment; and regional markets such as Djibouti and Ethiopia offer opportunities as well. It must be noted that with appropriate technology and adequate investments, this sector in Somaliland can generate high returns to the Investors. Needless to say, that the land available for cultivation and activities relating to farming are virgin and hence anything that is cultivated will be treated as organic. The following opportunities have been identified in this sector:

Dry land and flood/spate irrigated farms for staple food commodities

• Partnerships with local farmers.
• Leased land farming in collaboration with Government of Somaliland.

Irrigated farms for vegetables and fruit produce

• Opportunities exist for import substitution and huge demand exists for exports throughout the region.
• Demand for fresh fruits and vegetables is ever increasing in major towns of Somaliland.

Floriculture for exports to Europe and Middle East

• Ethiopia is generating huge amounts of Foreign Exchange by exporting flowers in spite of being landlocked.
• There is a great opportunity for Investors to set up greenhouse farming in Somaliland.

Inputs Suppliers

• Buy, sell and acquire agricultural machinery, and setting up Agriculture Equipment Banks to offer equipment on rent/lease to local farmers and future investors.
• Sell inputs, such as seeds, fertilizers, pesticides, water pumps, irrigation pipes, tools and equipment.

Agricultural Extension Services

• Consultancies in production systems.
• Area/Farm extension services.
• Training.

Agricultural Products Processing

• Grain harvesting/storage and grain mills.
• Oil pressing units.
• Fruit/vegetable processing units.