Country Listing

Somalia Table of Contents



Manufacturing achieved some success in the early 1970s, and was primarily based on processing of agricultural product. In 1986 the government planned to bring its sugar- and milkprocessing plants up to full production, to add a new cement factory in Berbera, and to contract with an Italian firm to operate its urea factory, which was producing at less than 30 percent of capacity. In 1989 a hides- and skins-processing plant in Mogadishu was completed with Italian government financing. Despite this activity, manufacturing did not respond to IMF incentives as well as agriculture had. In 1988 there was a decline of 4.9 percent in production. The decline followed a 5 percent increase in 1987. The government blamed the decline on shortages of inputs and spare parts and on poor management. By 1990 manufacturing had all but ceased to play a significant role in the economy, contributing only about 5 percent of GDP.