The Somali Gold Rush Is In Place....

[Somalian_Boqor]

Armo a town in Puntland is booming because of Oil exploration...

Until now, the tiny desert town of Armo in Somalia’s northern Bari province was little more than a truck stop between the major regional hubs of Qardho and Bosaso. And the only thing keeping the town relevant was the Armo Military and Police Academy that served both regional and national security training purposes.


The town, which lies a mere 28km from the Dharoor valley basin, is now experiencing the first benefits of oil exploration in Somalia. It can be said in Bari today that you can experience the benefits of oil there without so much as even sniffing the substance. Roads are being improved, and some even built from scratch to serve the growing demand of emerging investors. Hotels are popping up left and right across the town’s main highway to serve contractors. And real estate is booming for families looking to settle permanently in the area.

The biggest benefit has been to the value of the local currency. The Somali shilling went from exchanging at rates of 32,000 to the dollar to now 23,000 to the dollar–among the strongest rates ever experienced by the Somali shilling. This is entirely due to the influx of foreign contractors creating a demand for local goods and raising the value of items.

Locals are rightfully optimistic about exploration and expressed a desire to see Somalia, or at least their hometown, get out of poverty. This surge of optimism and confidence has led to less reliance on foreign aid, and outright rejection of it in favor of propping up local enterprise and natural growth.

Regional leaders have strongly reiterated that the prospective wealth of Puntland is not going to stay in one pocket of the country, but that it will work to lift the entire nation out of poverty on equal terms. It is a sentiment that the ordinary people of Armo and Puntland in general share.

[Somalian_Boqor]

Earlier today, IRIN, an independent news service of the United Nations, recorded interviews with the people of Puntland, ranging from high-ranking government ministers to diapora-based analysts and ordinary civilians in the region on the subject of a recent oil discovery in the region.

Opinions varied from person to person, but remained relatively positive. Independent analyst Mohamed Abshir Waldo had this say on the subject.

The discovery of a valuable natural resource anywhere in Somalia is welcome and it should benefit all the people of Somalia. The finding of adequate oil in Puntland would change the lives of the people of Somalia for the better provided it was managed properly and Somali authorities learned from the experiences of other African countries where oil was found. Oil has the potential of bringing corruption and curses to a country if not handled well.

Farrah Ali Jama, the Puntland Minister of Finance stated the following when asked about how funds would be handled by his administration.

I am 100% confident that this resource will improve people’s livelihoods. We will not fall into the mistakes made by others. The funds will not fall into the pockets of any individual or group. This is for all of the Somali people wherever they may be. We are working on a legal framework for the relationship between the Transitional Federal Government and the Puntland government on who will do what. The draft constitution will make it clear how resources will be divided. We will make sure that whatever money comes out of this will be handled transparently and every penny accounted for.

Jama is a highly competent minister and is an integral member of Puntland president Faroole’s ‘technocratic’ cabinet. On a more telling note, the agency also spoke to Farrah Hassan Atosh, a traditional elder in the town of Armo, a mere 28 km from the Dharoor valley oil field.

We are expecting great things. It will change our lives for the better. Insh’Allah, we will never depend on others to give us food again. You can see many more people arriving every day and it can only add to the development of the town. We not only support it, we will defend it from anyone who wants to stop it. They are employing many young men who would have been idle and easy prey for recruitment into militias.

Atosh, as with many locals in the region, is extremely defensive of oil exploration and believes his community has a lot to gain, and nothing to lose. The former district commissioner of Atosh’s hometown, Awad Hussein Ali, had this to add.

Businesses are starting in the area. We have a construction boom going, with hotels and big houses being built to accommodate the company employees and contractors. A few months ago we were exchanging US$1 for 32,000 Somali shillings. Today it is 23,000 Somali shillings. Who knows, our shilling may become like the Kuwaiti Dinar! They are already putting in roads and hopefully, schools and hospitals will follow soon.

The optimism in the region is to be expected, because while oil itself has yet to bring in actual dollars for the local economy or the people directly, the exploration and energy surrounding the project has brought many tangible benefits to the region, especially the financial sector. Not long ago, it was renegade pirates bringing in cash injection to the region, but they have been replaced by a more proper financial steroid, and a hugely appreciated one at that.

Hirsi Fiqi, Editor

DissidentNation.com

[FBISOMALIA]

carmo

[FarhanYare]

somaliboqor your folks can stop piracy now

[CismanMaxamud1]

carmo

[DANGIRL]

[Colonel]

Soon near you...

[tightrope]

DAMN BARI IS BOOMING!

[FarhanYare]

Soon near you...

[Somalian_Boqor]

Soon near you...

[Mustafee101]

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