African Entrepreneurship Record

Chapter 636: Chapter 314: Mogadishu Port Renovation

With the implementation of the ”Europe-Asia Fruit Basket Plan,” the cities of Mogadishu in the northern province and Kismayo in the Juba province were the first to take action.

Mogadishu Port is the most important port in the northern province, while the city of Kismayo is the estuary of the Juba River, giving it a logistical advantage in river-sea combined transportation over Mogadishu.

In the past, Kismayo’s main exports included bananas, along with livestock, leather, canned food, and other products. It had a modern slaughterhouse and small industries for meat and fish canning, as well as leather processing.

In terms of banana exports, Kismayo under East Africa was similar. Compared to Kismayo, Mogadishu also boasted a prosperous cotton industry, and the Shebelle River’s banks were an important East African quality long-staple cotton region.

The long-staple cotton production areas in East Africa were mainly divided into three sectors: the Shebelle River basin in the northern province, the Juba River basin in the Juba province, and lastly the lower reaches of the White Nile in the Nile province.

Under these circumstances, all three places processed cotton by removing seeds and then transporting semi-finished products to textile centers like Nairobi, Mombasa, and Dar es Salaam for further processing to meet local East African demand.

Alternatively, the raw materials could be directly exported through ports. There was a strong market demand for long-staple cotton, so there was no need to worry about the market. Most of this cotton was exported to Europe, especially Central and Eastern Europe, breathing new life into the textile industries of countries like Germany and Austria, further enhancing their products’ competitiveness.

Bananas and cotton were industries that the East African government vigorously promoted, but Somalia’s once-renowned livestock industry had dwindled. Other specialty industries also saw development, with the leather industry being particularly prevalent.

This is related to East Africa’s national conditions. Besides having abundant animal resources, East Africa should be considered the country with the most crocodiles worldwide, with rivers and lakes almost throughout the country.

The same applied to the Shebelle and Juba Rivers. In the southern part of Mogadishu, that is, the lower reaches of the Shebelle River, the area was covered with wetlands such as lakes and swamps, and the number of crocodiles was vast. The entire Shebelle River basin likely had more crocodiles than the population of the northern province, providing ample raw materials for Mogadishu’s leather industry.

In the past, crocodile intestines were a treasured dish for Somali people to serve to guests, and crocodile wrestling performances were a major attraction for tourists in Mogadishu. The city enjoyed the reputation of the ”Crocodile Kingdom.”

However, as mentioned earlier, crocodiles were distributed nationwide in East Africa, so the crocodile leather industry in Somalia was not very prominent within East Africa. The Limpopo River in southern East Africa, for example, was also nicknamed ”Crocodile River.”

However, the Somali region had a locational advantage, being closer to the main Europe-Asia shipping routes, making it an important crocodile leather export market. Not only did East Africa export these goods, but also merchants from Europe and Asia came to purchase them.

Both Mogadishu Port and Kismayo Port under East Africa had undergone refurbishments, with hardware upgrades. However, commercial trade was not as robust as before, related to East Africa’s isolationist policies.

This significant regional trade center, Mogadishu, was forced to cease operations because of East Africa’s conquest of the Gledi Sultanate, which also meant that the original economic foundation of the Somali region no longer existed.

Over the years, the decline of coastal cities like Mogadishu in Somalia accelerated the development of coastal cities in southern East Africa, such as Mombasa and Dar es Salaam.

Now that Mombasa and Dar es Salaam had developed, ports like Mogadishu could receive more assistance from the East African government.

In August, the East African government dispatched the first group of over 200 construction personnel from the south, most of whom were involved in port design and construction for the government.

They began surveying and planning the ports of Mogadishu and Kismayo, preparing for the upgrade and expansion of port capabilities there.

”Mogadishu Port still holds to the old port standards of the former Gledi Sultanate. Even after maintenance and repairs, there haven’t been substantial changes. It’s like old wine in a new bottle, merely restoring its fundamental functions when it was built, without real enhancements.

With the development of the Shebelle River basin and future population growth, northern province’s export trade will also expand. For Mogadishu Port’s expansion, a comprehensive dismantlement and reconstruction of the old port area is necessary to replan functional zones,” the chief designer of the Mogadishu Port renovation project, Austrian engineer Rolwendi, said to Mogadishu city officials after surveying the port.

”Designer Rolwendi, large-scale dismantling of port facilities might affect Mogadishu’s foreign trade, so can we avoid this issue?”

Rolwendi replied, ”If that’s the case, we can open a new port to the south of Mogadishu. This won’t delay short-term commercial activities while allowing the port’s expansion to be completed on time. However, this will change the city’s layout because a new port district would increase the required supporting infrastructure, and industries will shift with the port changes. In the future, Mogadishu’s industry and population will likely concentrate toward the south.”

”Does opening a new port mean we also have to rebuild a city area?”

”Not necessarily. If you don’t find it too troublesome, you can build a road from the city to the new port area to solve this problem. Additionally, I understand that you intend to develop river-sea transportation, which has significant advantages for connecting the Shebelle River with Mogadishu Port.”

Mogadishu, after all, differs from Kismayo. Kismayo is directly located at the Juba River’s estuary, which eliminates many complexities of connecting the port to the Juba River, though it may need more frequent dredging than Mogadishu in the future.

Although Mogadishu is a seaport and close to the Shebelle River, there’s still a distance that requires roads for connectivity. Furthermore, the Shebelle River flows past Mogadishu and continues for quite a distance, serving as an important irrigation area for both the northern and Juba provinces.

”Of course, there’s no need to be overly concerned. You can retain the old port while developing the new one, as seen in Dar es Salaam. New and old port districts coexist and develop well; one could even say Dar es Salaam has surpassed Mombasa because of this, making this option beneficial for Mogadishu.”

”Will the costs exceed the budget?”

”There’s no need to worry about that. Originally, a new breakwater was to be built at the old port. Now, we’re just shifting its location southward, so port costs won’t rise significantly and might even be cheaper. However, as mentioned, you’ll need to invest in new supporting infrastructure to ensure that Mogadishu’s trade isn’t disrupted in the short term, and major expenses can be spread over subsequent projects.”

Rolwendi’s words reassured the Mogadishu city government considerably. The main reason was that Mogadishu Port had a small scale and ample space for new construction, giving Rolwendi plenty of room to operate.

”Thank you, Mr. Rolwendi. With only two months until the rainy season, we hope you and your team can expedite the process. We aim to start construction next month; otherwise, the rainy season might pose challenges, especially during farming season when manpower in Mogadishu is limited.”