The Republic of Somaliland is situated on the tip of the Horn of Africa. Somaliland was formed in 1991 after separating from southern Somalia following three years of civil war (1988-91) but the country still awaits international recognition. The war led to the deaths of nearly 60,000 people, massive displacement of people internally and to other countries, and a near total destruction of infrastructure, communications systems, banking and all public services.

Prior to the war, Somalia was considered one of the poorest countries in Africa with 70 per cent of gross national product believed to derive from remittances sent back by people working abroad. Somaliland remains desperately poor and, given its lack of international recognition, receives little help other than minimal aid from major donors.

The main national source of government revenue - the trade in camels, sheep and goats to Saudi Arabia and the Gulf states - has been badly affected by a second import ban triggered by concerns over the spread of Rift Valley Fever in 2002 to 2003. At the same time, the lack of international recognition has created a culture of self-reliance among the Somaliland people, supported by relatives and friends in the Diaspora, with their remittances being a major contribution to the economy. The population has made an enormous effort to re-establish basic health and education services.

The majority of Somalilanders are pastoral nomads, although the country is in transition as it moves towards increased urbanization. Camels - the traditional currency of prestige and wealth - sheep, goats and some cattle are raised in large numbers across the plains and rangelands and provide daily subsistence and the economic backbone of the country.

An estimated 60 per cent of the population depends directly or indirectly on livestock and livestock products. Agriculture provides subsistence for nearly 20 per cent of the country's population and is practiced mostly in the east and northwest of the country where there is enough rainfall. Crops grown include sorghum, maize, fruit and vegetables. Somaliland is also a producer of frankincense.

Economy

Principal exports: Livestock (sheep, goats, camels, cattle ...)

GDP per capita: $200

External debt:  nil

Remittances: $200-500 million per annum

Livelihoods

Pastoralism/agro-pastoralism: 59%

Agriculture: 17%

Urban: 24%

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