Innovative Business Concepts for Somalia (Practical & Profitable Possibilities)
Many people are unaware of the business opportunities offered by Somalia. The straightforward truth is that the country has an enormous customer base with a huge demand for products and services but an extremely low supply; this means that there are many potential business opportunities in Somalia and they are growing rapidly. All of these opportunities will be available to those who can identify the problems encountered by the local population, identify market gaps, and take action to create solutions for those problems
1. Cold Chain Logistics and Food Preservation Services:
The amount of food wasted in Somalia daily is staggering, the majority of it being in the form of fish, milk, vegetables, and meat. Farmers and traders suffer financial losses on a daily basis due to the inability to properly preserve their products while they await transport or sale.
Providing cold chain logistics and food preservation services (refrigerated trucks, ice production and/or freezers) to farmers and traders will solve a very real problem and make it easier to do business in Mogadishu, Hargeisa, Bosaso and Kismayo, as well as throughout Somalia.
Why this business model succeeds:
The demand already exists.
There are very few organized companies that currently operate as cold chain food preservation service providers.
The level of demand for cold chain logistics and food preservation services is such that businesses are more than willing to pay for the lessened risk of loss of product.
The risk of starting this type of business is high due to the substantial amount of capital required, as well as the unreliability of electricity. Solar energy is a requirement for successful business operations.
2. Digital Services for Local Businesses:
Digital Services for Local Companies
Many Somali entrepreneurs still work without the benefit of their own websites, have not established a presence on Google, and use no online platforms for receiving orders. This is not because there has not been interest; but no one has been able to provide them with simple, low-cost options to establish a digital storefront.
You can build a business that provides them with:
Basic website setup.
An ordering system based on WhatsApp.
Social media support.
Registration on Google Maps.
Why this works:
Enormous potential market size.
Inexpensive to get started.
Recurring monthly revenue streams.
Be realistic:
3.The real work is educating the customers:
making a sale will be much more difficult than completing your work.
Waste Collection/ Recycling Business
The waste problem is becoming an increasing issue in urban areas of Somalia. Plastic, metal, and organic waste are found just about everywhere; yet, very few organizations are doing anything to capitalize on these materials.
A waste collection/cooperative waste recycling program in which you work with households, restaurants, and markets to facilitate waste collection can yield the following forms of income for your business:
Fee for picking up waste each month.
Income from recycling both plastic and metal.
Sales of compost produced from organic waste.
Why this works:
There is a continued demand for pick-up service.
Market conditions are favorable for long-term growth.
Potential joint venture/accommodation arrangements with municipalities/local NGO’s.
Risk: Achieving association with the community through a coalition with municipal authority. Coordination and patience with municipal authorities will be required to achieve an agreement.
4. Livestock Products with Added Value
Somalia sells live animals for a very low profit compared to processing those animals into value-added products. The most significant value-added products include:
Packaged meats
Dried meats
Leather products
Animal feed created from by-products
Why this is feasible:
Somalia has access to the raw materials needed to process livestock.
Somalia has the potential to sell processed livestock products in Gulf states.
The profit margins associated with processed livestock are much higher than selling live animals.
The hard fact is that if no attention is paid to quality control and hygiene standards, this type of business will be unsuccessful.
5. Affordable Private Education and Skills Development Centers
There is a substantial disparity between the level of education people receive compared to the level of skills that are employable in Somalia. There is a growing need for short-term training centers to teach practical skills such as:
Computer skills
Accounting software
Mobile phone repair
Solar power installation
Graphic design
Many young people today would consider these types of skills more valuable than a traditional degree.
Why this is feasible:
The population in Somalia is primarily young.
Parents will pay for their children to learn practical skills.
Training centers will generate a good return on investment.
If you hire poor instructors, they will ruin your reputation quickly.
6. Logistics/Last Mile Delivery Services
Concluding Remarks
Somalia doesn’t require “grand schemes.” Instead it requires good execution of straightforward solutions to its practical problems. The leading entrepreneurial concepts for the country are largely characterized as practical (boring) practical and mundane but reliable.
If you want to make money quickly, many of these will disappoint you; however if you seek out steady, consistent income over a long time period, many of these concepts will work well – assuming that you put in a substantial effort and manage your risk appropriately.
The rise of e-commerce and mobile ordering have created a surge in demands for last mile delivery services, but those services are still hit or miss. Businesses and consumers alike are looking for more stable last mile delivery options.
Examples include:
Motorcycle delivery
Cash on delivery (COD) systems
Business-to-business (BtoB) logistics
Reasons why:
there is a growing demand
daily cash flow
scalable with systems
Concluding Remarks
Somalia doesn’t require “grand schemes.” Instead it requires good execution of straightforward solutions to its practical problems. The leading entrepreneurial concepts for the country are largely characterized as practical (boring) practical and mundane but reliable.
If you want to make money quickly, many of these will disappoint you; however if you seek out steady, consistent income over a long time period, many of these concepts will work well – assuming that you put in a substantial effort and manage your risk appropriately.