The economy of Somaliland depends on livestock and the livestock sector employs about 70% of the population and contributes nearly 60% of GDP and 85% of export earnings. The principal export markets are Egypt, Oman, Saudi Arabia, Yemen and the United Arab Emirates and exports of livestock products to these markets have grown steadily in the last four years.
However, as this ILRI research report shows, despite recent growth in export volumes, livestock trade in Somaliland is taking place in an environment characterized by an underdeveloped legal framework, contract uncertainty and high information costs among other factors. Most of the trade is guided by informal traditional institutions, customs and religious practices that serve as alternatives to formal contracting.
The report appraises a Somaliland livestock marketing information system that was started in 2007 to address high market informations costs. The system, which is implemented by various government ministries and agencies in Somaliland, collects and disseminates data from livestock markets in Hargeisa, Burao, Tog Wajaale, Berbera and Lowya Caddo and is a decision-making tool for livestock sector stakeholders.