In brief
- On 16 June 2012, Somaliland Sun reported that investors reached a share apportionment accord for the Berbera cement factory.
- The reported share split sums to 130%, and the report does not establish whether the agreement was implemented.
- No subsequent updates are available on whether the factory became operational or the conflict was resolved.
On 16 June 2012, Somaliland Sun reported that a share agreement for the Berbera cement factory had been reached during a two-day meeting of investors in Hargeisa. According to the report, the agreement apportioned shares as follows: Sahil region residents 40%, Dahabshil company 20%, Kuwaiti Tycoon 20%, MSG 40%, and Government 10%. The report does not explain the entity 'MSG' or identify the 'Kuwaiti Tycoon'. The stated percentages sum to 130%, which is internally inconsistent.
The report said the factory had been moribund for over two decades, a claim the article attributes to Somaliland Sun but provides no supporting evidence for. It also stated that high prices for imported cement had raised construction costs and deterred low-income earners from owner-occupier housing. The report linked an end to the ownership conflict and a reduction in construction costs to the factory becoming operational.
Somaliland Sun reported that participants in the Hargeisa meeting, including business concerns, government officials and Sahil region representatives, were unanimous on the need to rehabilitate the cement factory. The report quoted returns from the government's 10% shareholding being earmarked for developing local communities in Sahil region. No names of officials or representatives were given, and the meeting date was not stated.
The 2012 report does not establish what has happened since the agreement. There is no information in the report on whether the share split was implemented, whether rehabilitation work started, or whether the factory became operational. No later updates are provided in the source material. The report's claims remain as reported at the time, with no subsequent confirmation of progress.
Frequently asked questions
What was the cement factory controversy?
The Berbera cement factory was reportedly moribund for over two decades, with heated debates and animosity between diverse investors and Sahil region residents who claimed ownership.
Who were the parties in the share agreement?
Somaliland Sun reported the share apportionment as Sahil region residents 40%, Dahabshil 20%, Kuwaiti Tycoon 20%, MSG 40%, and Government 10%. However, these percentages sum to 130% and are internally inconsistent.
What was the settlement?
The report stated that an accord was reached during a two-day meeting in Hargeisa on apportioning shares, and participants were unanimous on the need to rehabilitate the factory. It did not establish that the agreement was implemented.