SOMALIA - Business Community Pledges to Support Youth and

UNCLAS SECTION 01 OF 03 NAIROBI 000646

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SUBJECT: SOMALIA - Business Community Pledges to Support Youth and
the TFG


1. (U) SUMMARY. On March 21-22, more than 80 prominent Somali
business leaders gathered in Djibouti for the UN-sponsored workshop,
"Job Opportunities and Youth Employment: The Role of the Business
Community." The two day session was the largest formal gathering of
Somalia's private-sector principals in recent memory and included
some of the most influential businesspeople operating in Somalia.
Participants came from across Somalia, Dubai, Nairobi, Uganda, and
South Africa. They agreed that a prerequisite to generating jobs
was greater security and a strong federal government. The business
leaders committed to support immediate, short-term labor projects to
improve public infrastructure and to sponsor skills training and
development. With representatives of Somalia's Transitional Federal
Government (TFG) present, the businessmen urged the government to
establish an economic policy and regulatory framework that includes
formal incentives for job creation and a transparent banking and
finance system to attract foreign direct investment. The
participants agreed on a 24-person steering committee to carry
forward the workshop recommendations and to develop concrete
proposals to engage in particular Somalia's disaffected youth. The
workshop communique included in paragraph 12. End summary.

Launching a Collective
Strategy To Reclaim
Somalia's Youth
--------------


2. (SBU) On March 21-22, more than 80 representatives from many of
Somalia's largest companies met in Djibouti for the workshop, "Job
Opportunities and Youth Employment: The Role of the Business
Community." Sponsored by the UN Political Office for Somalia
(UNPOS),the two-day session was the largest formal gathering of
Somalia's private sector principals in recent memory. They traveled
from Mogadishu, Somaliland, Puntland, Dubai, Nairobi, Uganda, and
South Africa and were joined by at least 15 Djibouti-based
businessmen, many of whom are members of the Somalia Business and
Investment Council. The Somalia Affairs Unit worked closely with
UNPOS in structuring the workshop, identifying participants, and
ensuring that focus on the private sector was within the larger
framework of the Djibouti peace process.


3. (SBU) Deputy Special Representative of the UN Secretary General
for Somalia Charles Petrie opened the workshop on March 21
describing the meeting as an informal gathering to reflect and
brainstorm on the role of the business community to bring jobs to
Somalia's disaffected youth. The Minister of Youth and Sports
Suleiman Olad Roble told the group that while security in Mogadishu
is improving daily, youth have few opportunities and the government
has no resources to offer them. He invited the business leaders to
work in partnership with the government to provide youth another
option than becoming "guns for hire." In the conference closing
remarks, Minister of Trade Abdirachid Mohamed Abdi echoed many of
the same sentiments.

Immediate Needs: Security
and a Strong Government
--------------


4. (SBU) Answering the question, "What does business need to create
jobs?" in small-group sessions, each of the groups highlighted the
importance of a functioning government that can deliver services, a
low tax regime with little room for manipulation, and curbs on
corruption. The participants agreed that security and a strong
federal government were prerequisites to generating jobs. Each
recognized that unemployed youth are one of the greatest security
risks, and that only a small percentage of this population has
marketable skills. They committed to support skills training and
labor projects to rebuild the Mogadishu's infrastructure.


5. (SBU) The conversation advanced the idea of establishing private
security forces, following the example of the Bakara Market business
associations who have successfully "professionalized" security
around the market. Some were willing to finance local security
forces in particular areas. On the margins of the meeting, we
floated the idea of the private sector supporting Somalia's Joint
Security Forces. Some of the businessmen were keen to support this
idea while others felt it was more important to support

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community-based models that they felt would be more sustainable in
the long term. We responded that security must be a primary focus
at both the federal and the local levels concurrently.


6. (SBU) In the short term, the participants committed to show the
business community is collectively addressing common goals - peace
and stability in Somalia. The business leaders liked the suggestion
to host promotional activities to support the theme "Employment for
Peace." They agreed to explore how to positively promote Somali
business through an "Invest in Somalia" campaign, targeting the
Diaspora and building awareness of opportunities and methods to
invest directly or indirectly. In the longer term they sought to
proactively market Somali products through trade promotion in global
markets.

Creating Employment
Opportunities
--------------


7. (SBU) The businessmen wanted to do their patriotic duty by
employing youth, but recognized that a key to their commercial
success has been to employ the fewest number of people possible in
order to maximize profits. They expressed interest in taking on
labor intensive government public works projects. They mooted the
possibility of renovating or constructing markets, workshops and
offices to jump-start the informal sector and small businesses.
They agreed to support new entrepreneurs through business training
and providing micro-credit loans. Many noted that youth would
likely lack basic education and may need to begin with literacy and
numeracy training. They asked for ILO to survey the labor market to
define skills gaps.


8. (SBU) In the medium term, they pledged to push vocational
education, to equip training centers and to use local contractors
and schools to deliver and certify skill acquisition. Recognizing
that many of the youth may have been involved in armed militias,
they agreed that any plan must link with a DDR framework and offer
income alternatives to ex-militia. They supported the idea that
completion of a training course could be used as "collateral" for
micro-credit. One of the female entrepreneurs underlined the
critical work needed in attitude and behavioral change to
re-establish social norms, re-emphasizing the traditional value of
constructive work. Making a commitment to use Somalia-based
organizations for these types of activities would generate its own
set of employment opportunities, she noted.

Enhancing Policy
and Regulatory Frameworks
--------------


9. (SBU) The representatives often returned to the theme of
creating an enabling environment with mutual responsibilities by the
government and private sector. But in the current absence of any
formal government regulations, the business leaders agreed that
self-regulation is critical to ensure that good business practices
are cultivated and promulgated, including respect for worker rights
and ensuring transparent contractual procedures. They wanted to
work with the government to help establish standards and creating
public bodies for arbitration of disputes, moving Somalia toward
international rules, regulations and standards.


10. (SBU) The business leaders discussed their plans to eventually
transition the existing national chamber of commerce from
politically- to business community-appointed leadership. In the
longer term they recognized the importance of integrating Somalia
into regional and global trade bodies. They called on the UN and
World Bank to assist the government with international frameworks to
facilitate trade and development. Additional priorities included
developing a transparent central banking and finance system,
establishing export guarantees, supporting investment promotion, and
harnessing bilateral aid and development funds to help attract
foreign direct investment.

Promote Positive Engagement:
Establish a Steering Committee
--------------

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11. (SBU) Rebuffing a plan by the meeting's most influential
participants to name a small steering committee, the meeting agreed
to a 24-member multi-regional, multi-sectoral, mixed-gender steering
committee. The committee pledged to meet again within thirty days
and prepare specific proposals they could present to the larger
group. Participants also promised in the immediate term to do what
they could to support President Sharif and his government to
stabilize the country, and noted that many have already provided
direct material support to the TFG in the form of cash,
transportation, and lodging for MPs and cabinet members in
Mogadishu. The Somalia Affairs Unit will remain engaged with this
group and will assist UNPOS in planning a strategy to help support
their stated priorities to create employment and facilitate the
enabling environment for investment.

Communique
--------------


12. (U) At the conclusion of the workshop, UNPOS released the
following communique:


1. In the spirit of the Djibouti Agreement, the Somali Business
Community (SBC) held a workshop in Djibouti from 21 to 22 March 2009
to brainstorm on ways in which it could assist in creating job
opportunities and employment for the youth. The SBC based in
Somalia, Djibouti, Dubai, Kenya, South Africa and Uganda, as well as
youth and women's associations attended the workshop. In that
context, the delegates:

a) recognized that creating decent work for the people of Somalia,
particularly the youth, is a high priority for the achievement and
consolidation of peace and reconciliation.

b) discussed the challenges and constraints encountered in the
development of entrepreneurship, and made constructive proposals for
creating an environment that is conducive to job-creation and youth
employment.

c) exchanged experiences on the role members of the business
community play in their respective geographical areas.

d) agreed to establish a follow-up committee to design and implement
a strategy that would lead to the development of entrepreneurship.
The committee, which is composed of representatives from the Somali
Business Councils, Women and Youth Associations and the United
Nations, will be responsible for, inter-alia:
-- developing and implementing Job Opportunities and Youth
Employment strategy;
-- proposing project documents focusing on the development of youth
employment;
-- mobilizing, monitoring and managing available resources allocated
to the implementation of the youth employment strategy; and,
-- assisting with the development of capacity building
institutions.


2. As a gesture of support to the Somali peace process and
commitment to job-creation, the SBC decided to support short term
youth employment and requested the Steering Committee to provide
within 30 days concrete projects to be funded.


3. The United Nations Political Office for Somalia (UNPOS) organized
and supported this meeting with the facilitation from the
International Labour Organization (ILO) and UNDP.

Djibouti, 22 March 2009

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