In brief
- Global Construction Review reported on 22 June 2020 that Galmudug State will build a port in Hobyo through a new public-private entity.
- The report raises questions over Qatar's involvement, which undertook to fund the port last year.
- The article does not establish what has happened since that date.
On 22 June 2020, Global Construction Review reported that the state government of Galmudug would build a port in the town of Hobyo through a new public-private entity, according to statements made by Abdisabir Shurie, the Galmudug minister for ports and fisheries, at a rally in Hobyo.
Shurie said the Hobyo Port initiative had been launched and that a public-private entity would be established soon to raise capital from investors. Ahmed Abdi Kariye, known as Qoor Qoor, the newly elected president of Galmudug State, also addressed the rally and said that the business community had pledged $90m towards the port's construction.
The report raises questions over Qatar's involvement, which last year was reported to have signed an agreement worth around $170m to build the port. The project was to have been developed by state-owned port management company Mwani Qatar, and the Hobyo scheme was part of Qatar's effort to raise its influence in Somalia in competition with other Gulf states. Qatar has invested about $4bn in Somalia over the past eight years, according to the report.
The report suggests that a Qatari-funded plan could be off the table, and that an associated economic zone was contemplated alongside the port. Galmudug, founded in 2006, has tense relations with the federal government in Mogadishu and the state of Puntland to the north. The government is also attempting to disarm clan militias.
Since the 13th century, Hobyo has been a hub for merchants trading in textiles, precious metals and pearls. In modern times, the main export crops have been livestock, hides, aromatic woods and raisins.
The Global Construction Review article does not establish what has happened since 22 June 2020. No statement from the Qatari government or Mwani Qatar about the status of the previously reported $170m agreement was included. There was no confirmation that the $90m pledge from the local business community has been formalized or collected. No details were given on the structure, governance, or timeline of the proposed public-private entity, and the report did not specify whether the $170m figure was a total project cost, contract value, or another measure.