Mapping Report: Formalisation of Cooperatives and Private Sector Organisations

Mapping Report — Support to Policy Dialogue for Investment Climate in Somalia

Executive Summary

As part of a non-key expert assignment under the SPDI project, funded by the European Union, the Center for International Private Enterprise (CIPE) undertook a field-based mapping exercise to assess the capacity, roles, and needs of membership organizations, including cooperatives, business associations, and chambers of commerce. Specifically, CIPE sought to assess the extent of formalization and the relative presence of good governance practice within private sector organizations (PSOs). Further, based on input from organizational leadership, members, experts, and public officials, CIPE sought to paint a picture of an emerging model of PSO governance in Somalia that can be reinforced by policy action, knowledge exchange, and practical incentives.

The study finds that PSOs in Somalia perform useful services and have important roles to play as institutional supports to production and commerce. They have the potential to serve members on a larger scale if they were to apply more formal methods of organizational governance and management. While sound governance does not guarantee a PSO’s success, it creates pathways for legitimacy, accountable stewardship, and participation as well as a foundation for strategy and higher performance.

The mapping study concludes with recommendations in the following areas:

1. Create an enabling policy framework for PSOs.

2. Create a roadmap for PSO development.

3. Establish the basis for relations between government and PSOs.