Tender Description

TERMS OF REFERENCE (TOR) FOR PUNTLAND'S EXPORT
PROMOTION POLICY DEVELOPMENT
Assignment Title: PUNTLAND'S EXPORT PROMOTION POLICY DEVELOPMENT.

1. Background
   The Ministry of Commerce, Industries and Investment (MoCII) is mandated to create and enforce
   sound trade laws and policies in order to stimulate economic growth. By ensuring adherence to
   industrial quality standards and aligning with global frameworks such as the World Trade
   Organization (WTO) and the Sustainable Development Goals (SDGs), the Ministry plays a critical
   role in creating an environment conducive to investment and private-sector growth.
   The Ministry is implementing strategic reforms to modernize regulatory frameworks, strengthen
   institutional capacity, and improve the business climate. These initiatives are essential to establishing
   Puntland as an attractive investment destination and ensuring a sustainable and competitive business
   environment. They also support the climate-resilient competitiveness of the Somali agricultural sector
   and its integration into the East African Community (EAC) trade framework.
   Puntland's economy is highly dependent on imports significantly lower than exports in ratio of $1:12
   in last reports that means $11 of trade deficit. Bosaso Port is essential for trade and the movement of
   livestock, serving as a critical gateway to the region.
   Puntland's export economy focuses on livestock and natural resources, including frankincense and
   fish, supported by Bosaso Port and its strategic location. Key opportunities exist in processing and
   manufacturing to diversify exports and reduce reliance on imports. However, significant challenges
   include a high trade deficit, infrastructure gaps, security concerns, and regulatory hurdles.
   Livestock exports are a backbone of Puntland’s economy, providing 60% of employment, an average
   of 89% of total export earnings over the last 12 years, and 7% of GDP. Indigenous breeds of goats,
   sheep, camels, and cattle are well adapted to the arid environment, supporting sustainable production.
   Key Export Opportunities
   • Livestock- high-volume exports of sheep, goats, and camels exist with potential for further expansion.
   • Fisheries and Marine Resources – the long coastline offers substantial opportunities for investment
   in fishing and processing industries.
   • Agricultural productions - Puntland’s agriculture sector has made notable progress since 1998,
   following the formation of the Puntland State administration. Farmers have significantly improved
   agricultural productivity in the region.
   • Manufacturing and Processing – Opportunities exist for processing local products (e.g., meat and
   fish), manufacturing plastics, and beverage production to reduce reliance on imported goods.
   • Natural Resources/Minerals – Development of natural resources, including mineral exploration and
   frankincense processing, offers high growth potential.
   Key Export Challenges
   • Trade Deficit – A heavy reliance on imports of staples (sugar, rice, and flour) compared with limited
   exports creates a significant trade deficit.
   • Regulatory and Fiscal Hurdles -Widespread tax avoidance, low capacity of tax authorities, and
   complex, sometimes unclear regulatory frameworks hinder the business environment.
   The consultancy sought under these ToRs aims to strengthen the institutional capacity of MoCII and
   enhance private-sector development by supporting a business-enabling environment through
   appropriate regulations and policy frameworks. It will also support the promotion of domestic
   production and facilitate access to local, regional, and international markets by strengthening the
   quality of import and export commodities. The policy and regulatory framework should better support
   women’s economic empowerment and the inclusion of ultra-poor entrepreneurs, recognizing barriers
   related to access to finance, skills, and markets. MoCII therefore seeks to develop an Export
   Promotion Policy that improves market accessibility and addresses barriers that prevent these groups
   from fully participating in the economy.
   Currently, no dedicated Export Promotion Policy exists to translate these strategic directions into a
   coherent framework. Interventions remain project-based, donor-driven, and weakly coordinated, with
   overlapping mandates between ministries and limited mechanisms for systematic engagement with
   the private sector. A formal Export Promotion Policy is therefore required to define the Government’s
   vision, mission, objectives, and instruments for export promotion and to provide a clear basis for
   programming, budgeting, implementation, monitoring, and partner support.
   This ToR presents the background, methodology, analytical framework, and work plan for the
   consultancy assignment to develop the Puntland Export Promotion Policy, aligned with Puntland’s
   Economic Development Agenda 2036 and the Puntland State Development Plan 2026–2030.
2. Purpose of the Assignment
   To engage a qualified Consultancy Expert to support MoCII to:
   • Draft Export Promotion Policy
   • Boost Economic Growth (Export-Led Growth) -These policies aim to expand the market for
   local producers beyond domestic limits, driving aggregate demand and increasing GDP.
   • Generate Foreign Exchange Earnings - A primary goal is to gain foreign currency, which is
   crucial for strengthening the national currency and paying for essential imports.
   •  Job Creation and Employment - By incentivizing production for international markets,
   governments promote the expansion of local industries, which leads to increased employment
   opportunities.
   • Improve Global Competitiveness - Policies often focus on lowering the cost of production and
   enhancing efficiency to make domestic products more competitive in international markets.

Skills Required

Attachment

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