Russia rakes millions of dollars in Somalia
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Business reporter GAROWE ONLINE
- Posted On 21-04-2023, 08:35AM
MOGADISHU, Somalia - Russia is making significant inroads into Somalia's market through exports, it has emerged, in what could trigger stiff competition with the United States and other economic powerhouses across the world despite the fact that the Horn of Africa nation is struggling with insecurity.
A recent report from the money market shows Russia was able to earn over $10.8 million from exports to Somalia compared to Somalia's $65,000. This showcases huge gaps in terms of exports between the two countries where Russia is appearing dominant according to statistics.
According to a report published by the Russian Interfax News Agency, Somalia’s export to Russia consisted of sesame seeds only. The Horn of Africa nation is struggling to make an impact on global markets after decades of instability following the ouster of military leader Siad Barre.
The report says Russia’s agricultural exports to Somalia totaled 36,600 tonnes worth $10.8 million in 2021 compared to 29,800 tonnes worth $6.5 million in 2020 when only wheat was exported. Wheat is a major export and foreign income earner to Somalia from Russia.
The report further noted that Russia’s export potential to Somalia amounts to $30 million per year. It adds that some of the promising products include grains and leguminous crops, sunflower oil, wheat flour, pasta, yeast, and others.
Other products supplied to Somalia from Russia include wheat flour, sunflower oil, yeast, soft drinks, and water without sugar and additives were also supplied to the Somali market in 2021, Interfax said. Somalia is a close ally of Russia and Moscow has been contemplating setting up a military base in the war-torn country despite resistance from the US.
Both Russia and the United States are scrambling for economic and security fortunes in Somalia, with the US already establishing a military base to protect its interest. Along the Indian Ocean stretch, Russia has a military base in Mozambique and a post in Djibouti where the US has a huge presence.
GAROWE ONLINE
