AIS: The Dahabshiil Group also aims for new projects that are associated with Hyundai Motors?
Dahabshiil: That is true. We are in the midst of establishing a car dealership that will go into operation very soon.
AIS: All these and more underscore the fact that a number of your children are now intimately involved in this sprawling business, correct?
Dahabshiil: Yes! My intention is to continue both the expansion and specialization of various components of the Group so that family members will at once strengthen the core of the group and pursue their individual projects.
AIS: Tell me a bit more about Somalis and business initiatives in Somaliland, Somalia, and the Horn?
Dahabshiil: On the whole, the reputation of Somalis as talented people in the trading area is well-founded. When they collaborate, they usually succeed. I know most of the entrepreneurs in Hargeisa and other towns, for many have a business relationship with us.
So far, so good. But the real and tragic problem is the death of the national state and the consequent fragmentation. A key indicator of this weakness is the absence of a functioning central bank and an accepted national currency used across the geography of the territories. To put it differently, a viable and prospering economy must have efficient national institutions that can handle effectively critical macroeconomic policy. This is axiomatic everywhere. Now, in Somaliland, the Central Bank performs some tasks, particularly the monitoring of electronic transactions as well as undertaking some auditing of private companies. This is a positive step and in the right direction. We appreciate the service!
AIS: Does this mean that you, as a highly successful businessman, welcome the role of the state in economic development?
Dahabshiil: Absolutely! The state is the collective guardian. All of us need an effective state that can set the law, protect the citizens, adjudicate between disputes, promote education and health, invest in infrastructure, efficiently collect taxes, and stimulate economic growth and support the private sector. A competent and legitimate state that is recognized by the rest of the world confirms the positive claims made by domestic enterprises, like us, to the business firms from the rest of the world.
AIS: Can you comment on the proper role of private businesses, such as Dahabshiil Group, in the making of a national economy?
Dahabshiil: There are a number of pivotal expectations. These include the creation of jobs, the generation of tax revenues, lending capital to individuals to create other businesses or build homes. Dahabshiil Group is involved in all of these and more.
AIS: Beyond Somaliland and Somalia, are there other countries where Dahabshiil Group operates?
Dahabshiil: There are a number of other locations. For example, Nairobi is a major hub for us. We own buildings and have offices there. We are also present in Kampala (Uganda). Another important place for us is Dubai, where we are one of the top money transfer companies. Djibouti is also a crucial base for us.
AIS: Earlier, you stated that money transferring is about sixty percent of your total business. What are some of the other units of the Dahabshiil Group?
Dahabshiil: The other parts include: Dahabshiil Bank, Somtel (the telephone/internet) Company, real estate, and hotels (now two, but about to expand).
AIS: Are there new ventures you are about to undertake?
Dahabshiil: Yes! As a matter of fact, and as I mentioned before, I have just entered into a formal contract with the South Korean car company, Hyundai. We are building a dealership to distribute their vehicles. This will open soon in the east of Hargeisa.
AIS: Who will be your competition? Toyota?
Dahabshiil: Yes! Toyota is one of the two biggest motor companies in the world. Moreover, it is unquestionably dominant in the whole region. As a result, the competition will be stiff, but I am confident we will win our share of the market.
AIS: Given the fact that your Dahabshiil Group is increasingly becoming paramount among Somali-owned businesses, what is the next level of your ambition?
Dahabshiil: In world standards, as you will know, Professor Samatar, we are still very modest in every measure. But our entrepreneurial creativity and ambition is unabated. Thus, we hope towards becoming a conspicuously formidable conglomerate in East Africa.
AIS: Have you thought about South Africa – the continent’s second-largest and most sophisticated economy?
Dahabshiil: Not yet! I have been somewhat discouraged by the frequent news of violence, and particularly the killings of Somalis there. Perhaps, when the country calms down, I could entertain the idea of investing there. As is now well established, Somali entrepreneurship has outsmarted many other ethnic groups in East Africa.
AIS: Does Dahabshiil Group engage in philanthropy? This is a common practice in many parts of the world, and more so when success in business becomes substantial?
Dahabshiil: At this stage, Dahabshiil Group always makes contributions when local or national calamities happen. But I have a plan beyond that. I want to establish an institution responsible solely for philanthropic work. In fact, a seed towards that ambition is already in operation: we have set up a small unit, with a principal of 200,000 dollars, that focuses on micro-finance. The targets are those with very little but are willing to build their lives. This has been successful so far.
AIS: What is your biggest worry about the future?
Dahabshiil: Another burbur (political catastrophe), Allah forbid! Outside of that, the Dahabshiil business is quite diverse. Consequently, if one segment falters, the other tributaries will pick up and continue to cover for that loss. Diversity brings not only new streams of income but also provides security.
AIS: Quite correct! Diversity is usually a source of strength in almost all human endeavors. What advice would you offer to young Somali women and men who have an interest in business?
Dahabshiil: First, I would tell that it is commendable to cultivate ambition. Second, I would urge them to be Allah-fearing by being honest and trustworthy. Third, I would alert them to gear up for long hours of hard work. To this day, my telephone is always open, busy, and ready for action. Fourth, I would want them to be disciplined and organized. Fifth, I would underscore the importance of magnanimity towards others who have less.
AIS: Last question: since you have been exceptionally successful in most entrepreneurial endeavors, have you thought of bringing your blessed talents to the arena of politics and civic leadership?
Dahabshiil: No! Not a single day has that notion entered my mind. I do not intend that to happen in the future. Furthermore, I do not want any of my children to even entertain such an idea.
AIS: Why so categorical? If people of your intelligence and energy are unwilling, if not repulsed by politics and leadership, what do we do about dire civic concerns and the challenge of the building of a viable state? Is this not especially the case, given the horror you experienced in Burao and your strong assertion of the necessity of a legitimate and competent state?
Dahabshiil: This is the most salient and difficult question. I suggest that the Somali people as a whole, and those in Somaliland, should first ask themselves this central question: what is wrong? From my perspective, then, the crux of the problem is this: educated Somalis are paralyzingly watching each other, with the sense that someone else, other than themselves, will pick up the gauntlet. That will never be. To be sure, here in Somaliland, we have secured, thanks to Allah, peace and made significant progress in many areas. These achievements are well-worth of preserving. Yet, after thirty years, I have no idea where we are heading. Amongst the greatest challenges in front of us are: the enormous impediments in accessing the rest of the world; the absence of serious standards in medical care and education, the paucity of national infrastructure, and the forbidding cost of energy. Of course, some of these deficits, and even more acute ones, are also to be found in Somalia. My advice to the Somaliland people is this: protect and uphold what has been accomplished, and, at the same time, concentrate on making a future that is at once corrective and more inventive.
AIS: Haji Mohamed Said, Dahabshiil, much obliged for the extensive time you have given me, and the willingness to share a compressed version of your extraordinary biography.
Dahabshiil: Thank you, Professor Samatar! Given your own level of education and experience, I urge you and others of your caliber to do your utmost to contribute to the revival of the dignity and progress of the Somali people.
*The proceedings were conducted in Somali and translated by Ahmed I. Samatar
Citation
Samatar, Ahmed I. (2021) “The Making of Dahabshiil: A Brief Interview,” Bildhaan: An International Journal of Somali Studies: Vol. 21, Article 7.
Available at: https://digitalcommons.macalester.edu/bildhaan/vol21/iss1/7
Ahmed I. Samatar is the Chair and James Wallace Professor of International Studies, the Founding Dean of the Kofi Annan Institute of Global Citizenship at Macalester College, and Editor-in-Chief of Bildhaan.
Source: Bildhaan, An International Journal of Somali Studies: Vol. 21 (December 2021)
About This Journal
Bildhaan is a multidisciplinary journal that stresses public intellectual engagement. Established in 2001, it is the first of its kind and encourages submissions in all fields that are relevant to Somali peoples around the world.
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