Hargeysa, Somaliland, July 19, 2008 (SL Times) – Somaliland leader Dahir Riyale has rejected demands by the country's main livestock traders that the government bring to an immediate end its deal with Saudi merchant Abdul Rahman Al Jabiri that allows the later to enjoy a monopolistic control over livestock export trade in Somaliland.

The agreement which was signed last year between the Riyale government and Al-Jabiri also imposes a fixed price for Somaliland sheep export at the rate of $36 per head.

However the deal was met with strong opposition from livestock traders complaining that the arrangement was unfair and in violation of the principle of free trade.

When leader of the livestock leaders took their complaints to Mr. Riyale on last Thursday, the Somaliland leader offered that the price be raised to $42 per head of sheep in 5 months time. After the livestock traders rejected the offer Mr. Riyale responded by abruptly ending his meeting with them.

Under the present arrangement with Al-Jabiri, the Saudi tycoon can secure his livestock import needs only through two commission agents Adan Baradho and Ali Balaq-Balaq. The two men ran their own livestock export businesses before being recommended to Al-Jabiri by the government. Both are known for their financial dealings with the government as well as donations to Riyale's UDUB party.

Livestock traders now insist that they will have to ignore the agreement with Al-Jabiri and start sending their own livestock shipments to dealers in Arabia .

Last week over 2000 heads of sheep were assembled at Berbera port by independent traders opposed to Al Jabiri's monopoly on the livestock export business. The local population sympathized with the traders.

Coming under public pressure to let the shipment go through, the government finally succumbed by allowing the animals to be exported from Berbera.

Although the government made it clear that they will not tolerate any similar attempts in the future, however the traders say they will do it again and again.

“We have no alternative except to seek to be able to exercise our right to free trade which as enshrined in this country's constitution. When we know the asking price for Somaliland sheep is $98 – 120 in Arabian markets why should we accept to sell at $36 or even $42?” one of these traders said.

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