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PORT LOUIS, July 22 (Reuters) - The telecoms sector in war-torn
Somalia is surging even though the Horn of Africa country has had no
government for the past 13 years, a senior industry official said on
Thursday.
Somalia descended into anarchy when dictator Mohammed Siad Barre was
toppled in 1991, leaving it without central government. It is split
between two self-declared enclaves in the north and a patchwork of
quarrelling fiefdoms in the south.
"When there was a government from 1960 to 1991, Somalia had about
17,000 fixed lines," said Abdigani Jama, secretary-general of the
Dubai-based Somali Telecom Association, set up by the International
Telecommunications Union (ITU) and United Nations.
"Somalia now has about 112,000 fixed lines as well as about 50,000
mobile subscribers," Jama told Reuters in an telephone interview from
Dubai.
The telecoms industry emerged when local entrepreneurs, educated in
the west, returned home and tapped into the market when they realized
its potential, Jama said.
"It started with about 11 operators but this has now shrunk to eight
major operators and we expect it to shrink further to about five or
six," he said, adding that many small companies had either merged or
were bought out by larger players.
Local operators had invested about $68 million since 1991, setting up
fixed lines in all 18 regions of the country, despite it being
divided and under the control of powerful warlords.
Jama attributed the boost in Somalia's telecoms sector to the absence
of government red tape as well as Somalis' natural entrepreneurial
spirit, but said a central government was necessary if the sector was
to develop further.
"We need a government to regulate and provide necessary legislation
as well as ensure security and peace which would attract much-needed
foreign investment to the sector," he said.
The Somali telecoms industry has no foreign players due to
instability and routine clashes between warlords. It also lacks human
resources as many qualified engineers have fled the country due to
the conflict.
But a lack of government had not prevented operators from different
fiefdoms working together to reach remote areas of the country and
provide a service to its 10 million people.
"Telecommunications is the backbone of everything -- trade,
investment, health and education -- and the development of this
industry and has helped ordinary Somalis," he said.
By Nita Bhalla
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