This baseline survey in Somaliland on business regulations is a study commissioned by the IFC to inform both its SICRP2 and SUSIP project, which aim to enhance private sector-led growth and competitiveness in Somaliland. The aim of the business regulations component of the project is to gather data on processes and procedures to start and operate businesses in Somaliland and to identify primary constraints in the business regulatory environment.

In the 4th quarter of 2020 the Ministry of Trade, Industry, and Tourism (MoTIT) together with Shaqodoon and Spark launched the Xogsiiye Interactive Voice Response (IVR) service. Xogsiiye provides information about how to register and license a business, access to financial services, access to business development services, and information about tourist sites and planning.

In light of the National Development Plan II (2017-2021) and the Somaliland Vision 2030, the MOTIT is on the path to ensure great accomplishments, and the first two quarters of the year 2020 was one of significant progress despite major challenges faced as a result of COVID-19 pandemic. This progress was advanced in the second half of the year. Finally, and importantly, the progress of the year 2020 has also been evaluated based on the MoTIT Annual Strategy Plan 2020.

In light of the present COVID-19 pandemic, Somaliland’s Ministry of Trade, Industry and Tourism (MoTIT) has taken the initiative to monitor the evolution of fuel retail prices and exchange rates. The price of fuel in international markets has plunged in the past few months due to the virus-driven global crisis. Somaliland is dependent on fuel imports for energy supply, and the decrease in global fuel prices is likely to impact the country’s economy and employment. Consequently, it is essential to pay close attention to how changes in global fuel prices affect Somaliland’s economy. In addition to prices, the MoTIT considered relevant to analyse the exchange rates used by fuel retailers.

This statistics report summarises the evolution of business registrations, business licenses, and exports and imports in Somaliland for the first quarter of 2020. The data is regularly collected by the Ministry of Trade, Industry and Tourism (MoTIT). Detail is provided in this report regarding each of these areas, such as the most common nationality of foreign tourists, or the distribution of business registration and licenses by business type. After providing detail on these items, the report briefly summarises the main tenets.

The World Bank’s Enterprise Surveys recently conducted a survey of formal and informal private businesses in Somaliland. These surveys intend to capture the structure, conduct and performance of the private firms in Somaliland as well as the quality of the business climate broadly defined to include various elements such as the availability of physical infrastructure, law and order situation, access to finance, labor regulations, obtaining licenses and permits, etc

The COVID-19 pandemic has formed deep disruptions to our economy and society. Many Somaliland businesses are experiencing an adverse impact from the pandemic, which is same as other countries fighting the disease. In prevention and response to the crisis of this pandemic, the Somaliland government imposed the country under national lockdown to prevent the spread of the virus, cause in shutting down of many businesses.

The COVID-19 pandemic has hit countries’ economies around the globe. The severe measures implemented to halt the spread of the virus have resulted in a significant reduction in international and domestic trade.In most cases, the most vulnerable layers of society have been the hardest hit. The informal sector has traditionally been considered as one of these layers, not least due to the fact that the usual lack of registration of workers and companies precludes social protection policies to reach those in most need.

Under the guidance of the National Development Plan II (2017-2021) and the Somaliland Vision 2030, Somaliland is on the path of social and economic development, and the year 2019 has been one of significant progress. The MoTIT is proud to have contributed to this progress in different ways.

This report summarises the evolution of business registrations, business licenses, and tourist visits in Somaliland during the year of 2020. Detail is provided regarding each of these areas, such as the most common nationality of foreign tourists, or the distribution of business registration and licenses by business type. After providing detail on each of these areas, Section 3 briefly highlights the main tenets of the report.