Situation Analysis and Challenges

Challenges

Sector Policy Focal Area: Economic Development

Private sector growth has significant potential for the state economy, with small businesses already in place (e.g. remittance transfer services), growing interest from the Somali diaspora, and an active chamber of commerce. Overpricing and poor transport links for the supply of essential commodities are among some of the challenges facing the private sector, along with the difficulty of assessing supply and demand, and limited knowledge of business practices that could foster diversification and more specialised types of businesses in the state. Other skills and needs, such as record-keeping and insurance, are limited or not yet available, and many trade unions and cooperative societies have yet to become active again. JSS will pursue increase foreign direct investment for economic development. Progress on this front depends not only on solid potentials for investment at the state level, but a policy and regulatory framework at the national level to promote and govern foreign investment.

 

Priorities

  • Enhance organizational and institutional capacities of the Ministry
  • JSS administrative policies and regulatory frameworks developed and implemented to promote investment, combat corruption, and expand trade.
  • Access to finance improved, particularly for small and medium enterprise.
  • Public-private partnerships initiated to catalyse small business development that leverages potential areas of growth (e.g. honey factory)
  • Promote concepts of local value chain development on the JSS productive sector (including collaboration with agriculture and other sectors)
  • Establish and manage special economic zones (SEZ) and attract diaspora investment

 

Key Findings

Key output in 2015 & 2016:

The JSS Industrial Strategy Phase 1: 2016 – 2018 was finalized in June 2016;

Policies, strategies and plans:

JSS Commercial Law; JSS Company Law; JSS Industrial Strategy (2016);

Mandate according to Establishment Decree:

  1. Promote the expansion of domestic trade and take appropriate measures to maintain lawful trade practices
  2. Create conducive conditions for the promotion and development of the region’s export trade and extend support to exporters
  3. Establish a system that enable to ascertain that export or import goods are sold or bought at the appropriate price;make follow ups in collaboration with the concerned executive bodies, and take measures in accordance with the law against those who export or import by under invoicing;
  4. Establish foreign trade relations, coordinate trade negotiations, sign and implement trade agreements;
  5. Establish and follow up the implementation of comprehensive system for the prevention of anticompetitive trade practices; provide protection to consumers in accordance with the law;
  6. Provide commercial registration and business licensing services, and control the use of business licenses for

unauthorized purposes;

  1. Undertake and submit to the Council of Ministers price studies relating to basic commodities and services that have to be under price control and, upon approval, follow up the implementation of same;
  2. Establish the legal metrological system of the region, regulate its enforcement and coordinate the concerned regulatory bodies;
  3. Control the qualities of export and import goods; prohibit the importation and exportation of goods that do not complywith the requirements of the standards, and work in collaboration with the concerned organs;
  4. Control the compliance of goods and services with the requirements of mandatory Jubba standards, and take measure against those found to be below the standards set for them;
  5. Cause the coordinated enforcement of standards applied by other enforcement bodies, organize and direct

implementation review conferences;

  1. Organize the trade data of the region, and disseminate same to the concerned bodies;
  2. Encourage the establishment of cooperative societies, including those of consumers, and chambers of commerce and sectoral associations, and strengthen those already established;

 

Organizational Structure: ORGANOGRAM according to Establishment Degree not implemented and changed:

Current organisational structure, but not fully executed yet;

Minister + Secretary + Consultants + Chamber of Commerce

Deputy Minister

General Director

  • Admin and Finance Department
  • Trade Director Department
  •  Trade & Licence Officer
  • Export and Import Officer
  • Industries Director Department
  • Local Product Officer
  • Maintenance and Repairing Officer
  • Planning Director Department
  • International Coordinator Officer
  • Statistics Officer
  • Marketing/ Research Department Director
  • Research Department Officer
  • Internal Quality Control