It is an honor to attend the 8th Energy and Extractives Sector Coordination Forum, convened here and led by the Ministry of Energy and Minerals. This forum is a vital part of our nation’s Development Plan III, highlighting the crucial role of the energy and extractives sectors in our economy. And in our National Development Plan II, the Republic of Somaliland has achieved a lot in this sector—an achievement made possible by the partnerships of all stakeholders, including the private sector.
Energy and extractives are not just components of our economy; they drive trade and economic growth. These sectors create jobs, boost exports, and attract investment, laying a strong foundation for sustainable development.
To realize our nation’s full economic potential, we must develop these sectors through partnership, strong commitment and investment from all concerned stakeholders. Reliable and efficient power supply is essential for industrial activities, reducing production costs, and enhancing competitiveness. A robust power infrastructure enables industries to operate smoothly, ensuring consistent productivity and growth. Investments in energy infrastructure attract businesses, create jobs, and stimulate local economies. A stable energy supply reduces dependency on imports, improving trade balances and economic stability. Promoting renewable energy sources like solar and wind is crucial for creating sustainable jobs and reducing environmental impact. A strong energy sector attracts foreign direct investment, bringing capital, expertise, and technology, driving innovation and development. Lower energy costs boost business profitability, encouraging expansion and further investment. Electrification of rural areas supports small businesses and improves living standards, promoting balanced regional development.
In the extractives sector, mining and extraction activities generate significant revenue through taxes, royalties, and export earnings. These revenues can be reinvested in critical public services and infrastructure. The extractives industry provides direct employment and stimulates job growth in related sectors. Extracted resources like minerals and hydrocarbons contribute to national export earnings, improving trade balances. Development of mining infrastructure often includes roads, ports, and other facilities that benefit the wider economy. The extractives sector attracts substantial foreign direct investment, bringing advanced technologies and best practices, fostering a competitive industry. Mining operations create demand for local goods and services, boosting small and medium enterprises. Partnerships with international firms in the extractives sector lead to technology transfer and skill development. Revenues from the extractives sector can be reinvested in other industries, promoting economic diversification and resilience. Corporate social responsibility initiatives by mining companies often support local education, healthcare, and infrastructure. The extractives sector provides a buffer against economic shocks by ensuring steady revenue streams even during global economic downturns.
Through strategic development of the energy and extractives sectors, we can drive our nation’s economic growth, ensuring a prosperous and sustainable future for all. Let us work together, harnessing the full potential of these sectors, to achieve our economic aspirations and build a brighter future for our nation.
