MOGADISHU — A suicide blast tore through a Mogadishu hotel on Thursday killing at least three ministers in Somalia’s transitional government who were at a ceremony, officials said.

A staff member at the hotel said at least six people were killed in one of the most serious attacks on the government since the launch of an insurgency by the Al-Qaeda inspired Islamists that has brought new strife to the Horn of Africa nation.

Several ministers from the UN-backed Transitional Federal Government (TFG) were at a graduation ceremony for students at the Shamo hotel when the explosion went off, the staff member said.

A hotel security official said the attack was carried out by a suicide bomber, who was probably among the guests.

Higher Education Minister Ibrahim Hassan Addow and Health Minister Qamar Aden were killed on the spot and Education Minister Mohamed Abdullahi Waayel died shortly after the blast, a senior government official said.

Sports Minister Suleyman Olad Roble was among the injured, the official added.

Two journalists, one from Shabele Radio and another from Al Arabiya television, and a doctor were also killed, a source at the hotel said. AFP photographer Mohamed Dahir sustained slight injuries.

In Kampala, the acting head of AMISOM, the African Union peacekeeping force in Somalia, Wafula Wamunyini, said the attack “was intended to intimidate and blackmail the TFG. We condemn this incident in the strongest terms.”

Thousands have been killed in Mogadishu in recent years as Islamists battle for control of the capital.

The Somali insurgents launched a fresh offensive against the transitional government of President Sharif Sheikh Ahmed on May 7 and clashes since then that have left more than 250 dead while an estimated 120,000 people have fled the city.

Militants of the Shebab militia have vowed to bring down the government and force all foreign peacekeepers in the African Union force out of the country.

Somalia has had no effective government since President Mohamed Siad Barre was forced out of power in the early 1990s.

The transitional government only exists with the backing of the 5,000 African Union peacekeepers from Burundi and Uganda.

At least 60 peacekeepers have been killed since they were deployed in March 2007 to protecting strategic sites in the seaside city such as the presidency, the port and the airport. A twin suicide bombing at Mogadishu airport in September killed 17 peacekeepers.

Wamunyini ruled out any withdrawal of peacekeepers following the new attack however: “We want to ensure everyone we are going to continue with our mission. We are going to continue providing our services.”

The Islamists control large swathes of Mogadishu as well as much of the centre and south of the country.

The attack came a day after AMISOM head Wamunyini expressed frustration at the failure of African countries to honour troop commitments. The force is meant to have 8,000 soldiers.

Wamunyinyi said the threat posed by Islamist insurgents had been exaggerated, scaring off countries from deployments.

“We feel really frustrated and let down that several African nations have not honoured their commitment to send troops, but the media have made it difficult for them to deploy,” he said.

“And nobody seems to appreciate the AMISOM has accomplished a lot,” he said at the press conference in Kampala where military chiefs and other AU officials are meeting on ways to boost the force. Source (AFP)

HARADHEERE, Somalia (Reuters) – In Somalia’s main pirate lair of Haradheere, the sea gangs have set up a cooperative to fund their hijackings offshore, a sort of stock exchange meets criminal syndicate.

Heavily armed pirates from the lawless Horn of Africa nation have terrorised shipping lanes in the Indian Ocean and strategic Gulf of Aden, which links Europe to Asia through the Red Sea.

The gangs have made tens of millions of dollars from ransoms and a deployment by foreign navies in the area has only appeared to drive the attackers to hunt further from shore.

It is a lucrative business that has drawn financiers from the Somali diaspora and other nations — and now the gangs in Haradheere have set up an exchange to manage their investments.

One wealthy former pirate named Mohammed took Reuters around the small facility and said it had proved to be an important way for the pirates to win support from the local community for their operations, despite the dangers involved.

“Four months ago, during the monsoon rains, we decided to set up this stock exchange. We started with 15 ‘maritime companies’ and now we are hosting 72. Ten of them have so far been successful at hijacking,” Mohammed said.

“The shares are open to all and everybody can take part, whether personally at sea or on land by providing cash, weapons or useful materials … we’ve made piracy a community activity.”

Haradheere, 400 km (250 miles) northeast of Mogadishu, used to be a small fishing village. Now it is a bustling town where luxury 4×4 cars owned by the pirates and those who bankroll them create honking traffic jams along its pot-holed, dusty streets.

Somalia’s Western-backed government of President Sheikh Sharif Ahmed is pinned down battling hardline Islamist rebels, and controls little more than a few streets of the capital.

The administration has no influence in Haradheere — where a senior local official said piracy paid for almost everything.

“Piracy-related business has become the main profitable economic activity in our area and as locals we depend on their output,” said Mohamed Adam, the town’s deputy security officer.

“The district gets a percentage of every ransom from ships that have been released, and that goes on public infrastructure, including our hospital and our public schools.”

RISK VS REWARDS

In a drought-ravaged country that provides almost no employment opportunities for fit young men, many are been drawn to the allure of the riches they see being earned at sea.

Abdirahman Ali was a secondary school student in Mogadishu until three months ago when his family fled the fighting there.

Given the choice of moving with his parents to Lego, their ancestral home in Middle Shabelle where strict Islamist rebels have banned most entertainment including watching sport, or joining the pirates, he opted to head for Haradheere.

Now he guards a Thai fishing boat held just offshore.

“First I decided to leave the country and migrate, but then I remembered my late colleagues who died at sea while trying to migrate to Italy,” he told Reuters. “So I chose this option, instead of dying in the desert or from mortars in Mogadishu.”

Haradheere’s “stock exchange” is open 24 hours a day and serves as a bustling focal point for the town. As well as investors, sobbing wives and mothers often turn up there seeking news of male relatives missing in action.

Every week, Mohammed said, gang members and equipment were lost to the sea. But he said the pirates were not deterred.

“Ransoms have even increased in recent months from between $2-3 million to $4 million (2.4 million pounds) because of the increased number of shareholders and the risks,” he said.

“Let the anti-piracy navies continue their search for us. We have no worries because our motto for the job is ‘do or die’.”

Piracy investor Sahra Ibrahim, a 22-year-old divorcee, was lined up with others waiting for her cut of a ransom pay-out after one of the gangs freed a Spanish tuna fishing vessel.

“I am waiting for my share after I contributed a rocket-propelled grenade for the operation,” she said, adding that she got the weapon from her ex-husband in alimony.

“I am really happy and lucky. I have made $75,000 in only 38 days since I joined the ‘company’.”

(Writing by Daniel Wallis; Editing by Jon Boyle) Source: (Reuters)

Asmara, 25 November 2009 – President Isaias Afwerki underscored that the distorted and baseless anti-Eritrea accusations and intended measures in connection with the Somali issue would be a resort the authors and implementers of which stand to regret.

The President made the salient remarks in an interview he conducted today with the Washington Post newspaper here in Asmara. Indicating that the course being pursued by the international community in general and the forces directly involved in the Somali issue in particular has failed to bear any fruitful outcome, he emphasized that it is unjustified to level accusation against Eritrea, and that the failure of various past attempts fully attest to Eritrea’s correct stance.

President Isaias stated that there is no reason for Eritrea to support one party against another regarding the Somali issue, and that it has nothing to gain from such a game. He further pointed out that there is no reason at all for Eritrea to send arms to Somalia where there exists huge arsenal of armaments for a long time and is still the center of arms sales. In this connection, the President reminded the international community to draw lesson from a failed experience and strive for the realization of a comprehensive political solution to the Somali issue.

On Eritrean-US relations, President Isaias explained that the cause for problems in relations between the two countries was the fruitless policy pursued by Washington over the past 20 years both globally and at the level of the Horn region. As such, it is not because the US pursues hostile policy towards Eritrea, he added. Noting that Washington’s policy of ensuring control in Africa in general and the Horn in particular through regional giants has been further complicating regional problems, the President indicated that the hasty and unstudied steps taken in various parts of the world after 9/11 not only complicated issues but also made solutions impossible.

As a significant world power, the USA is duty-bound to formulate a workable and fruitful policy fit for the 21st century through reviewing past policies and the problems resulting thereof, he elaborated.

Replying to a question regarding the intention on the part of youths to migrate abroad, President Isaias said that such a phenomenon being witnessed in all corners of the world emanates from the desire to lead ‘high standard of living’ in foreign lands, and that it is not only becoming a headache to the countries of migration but is also the source of organized crimes.

He went on to explain that if at all youth migration is considered as brain drain ploy, the available potentials in Eritrea could never be an easy target for that sinister design. President Isaias underlined that although there are instances in which Eritrean youths migrate abroad due to temporary problems, their devotion to their people and the Homeland is nonetheless unquestionable, as being amply demonstrated in their active participation in the activities of Eritrean communities in the Diaspora. Source: (Shabait.com)

AFDB

Tunis, 24 November 2009 – After decades of interruption, Somalia re-established its relationship with the African Development Bank (AfDB) on Monday, 23 November 2009 with the signing of a USD 2 million grant to provide financial and technical assistance to Public Financial Management.

The support to the Transitional Federal Government of Somalia comes from the Fragile States Facility (FSF) administrated by the Bank’s Fragile States Unit.

The grant will also help the country establish sound and transparent public financial systems and develop an appropriate legal framework for fiscal and monetary institutions as well as human and institutional capacity.

Addressing the Deputy Prime Minister and Minister of Finance of Somalia, Mr. Hassan Cheikh Issak who signed the agreement for his country, Mr. Nono Matondo-Fundani, Country Director for Somalia, representing Sector Operations Vice President, Kamal el Kheshen, said that the Bank “congratulates the Government of Somalia for ensuring that all government institutions are now based in Mogadishu, the formulation of a national plan and the establishment of a functional Central Bank and effective anti-corruption commission”. Mr. Matondo-Fundani added that the Bank appreciates Somali government efforts to normalize the security situation.

“We were an active member of the African Development Bank before, and we are excited to be back in business with the Bank. We can assure the Bank that we will make good use of the $US 2 million grant to strengthen our financial sector and my government is committed to transparency and accountability,” Mr. Hassan told Bank President, Donald Kaberuka, in an earlier meeting.

For her part, the Head of the Bank’s Fragile States Unit, Margaret Kilo, said “Today’s signing ceremony is a momentous event and a first step towards Somalia reengaging with the Bank after nearly two decades. “The Bank is committed to accompanying the government through the process of reengagement,” Mrs. Kilo added.

Somalia has been under sanctions with the Bank Group since the early 1990s when it started accumulating arrears on its loans repayments. Although the Bank had suspended its operations in the country because of the sanctions, it remained engaged in the provision of humanitarian assistance.

Given Somalia’s complex political volatility, its prevailing fragile security situation and the deteriorating social and economic situation, there is currently no clear solution to the country’s arrears problem. To date, the most feasible option for the Bank’s engagement in Somalia is through the Fragile States Facility (FSF) which provides financial resources to Bank Group Regional Member Countries under sanctions.

In October 2009, following the government’s request to the AfDB to assist in rebuilding financial management, the Bank approved a grant of US$ 2 million from the Targeted Support Window of the FSF. This window is designed to provide targeted support for technical assistance and knowledge management.

The Transitional Federal Government is the internationally recognized government of Somalia. The country currently faces several complex constraints and challenges, among which are the urgent need for humanitarian assistance, weak governance, eroded state organs, low government capacity, and a pronounced lack of capacity to deliver basic social services.

Somalia is defined as a Least Developed Country and is one of the ten poorest countries in the world. About 60% of Somalia’s economy is based on agriculture.

Economic progress in Somalia is mixed. Somalia is a fragile state with hundreds of thousands of refugees due to massive floods and the latest fighting in the country’s civil war. Due to the lack of government oversight and data, and the recent war, it is difficult to get an accurate picture of the country’s economic situation.

* 1 UA (Units of Account) = USD 1.59 as at 23/11/2009

African oil production accounts for 13% of total oil production worldwide. Experts believe that Africa is going to contribute 33% of total expected oil production growth in the coming years. The growth projection creates amongst investors as well as exploration companies an atmosphere comparable to the mining rush experienced by North America in the mid-1840s. The search for oil and gas has begun all over the African continent.

Dubai based company Black Marlin Energy is an oil and gas exploration company focusing on identifying overlooked or misinterpreted ground floor opportunities around the globe. The company emphasizes that it has long ago recognized the oil and gas potential of the East African Margin, which has been underestimated in the past. According to Black Marlin Energy, $ 500 million us dollars has been spent on research in East Africa and approximately 600 wells have been drilled from Eritrea to Mozambique with a high success rate.

Range Resources Ltd., another company engaged in oil and gas exploration from Australia, has directed its principle activity towards searching oil, gas and mineral resources in Puntland, Somalia. Range Resource could be described as a high risk taker considering the current situation in Somalia. However, some investors believe that there are large undiscovered oil fields off the coast of Somalia, which could provide a huge return in capital employed in the near future.

Interestingly, exploration of natural resources appears to be conflict resistant and bullet proof even in the most violent corners of this planet.

Coastal countries especially in the Horn of Africa are predestined for offshore oil exploration as they share the same geographical region as the Arabian Peninsula.

Eritrea has proven that mining could become one of the important pillars of its economy. In a recently published statement the Government of Eritrea has announced that the country will export gold and copper starting from autumn 2010.

This is a major step forward for the country because the export of gold and other metallic ores will significantly contribute to the earnings of much needed foreign exchange.

In 2008 the Government of Eritrea signed two agreements with Defba Oil Share Company on oil exploration and development. The company is supposed to undertake oil exploration activities in two blocks of the Eritrean northern territorial waters.  The Defba Oil Share Company has been set up through the partnership of the Eritrean government and Energy Alliance Company W.L.L. Thus, time will tell if oil and gas exploration could become another pillar, which will play an important role in the development of the country’s economy.

In financial investment overestimated risk can turn into huge profits, if detailed analysis has been conducted in understanding the facts on the ground when assessing a business, company or country.

The UN refugee agency has entered into partnership to warn thousands of people about the dangers they face by crossing the perilous sea waves that separate the Horn of Africa from Yemen.

In a news release published here Tuesday, the agency said it has long been trying to spread awareness about the dangers, but people still keep making the perilous crossing.

In a bid to reach a wide audience, UNHCR and the International Organization for Migration (IOM) have teamed up with the BBC World Service Trust to air a weekly radio broadcast about the risks.

The first 30-minute “Lifeline” program was broadcast on Saturday on the BBC’s Somali service.

It will become a weekly feature over the next six months, when the Gulf of Aden sailing season is at its height.

Aside from awareness material, the Saturday afternoon program will also carry general information of interest to migrants and asylum-seekers.

“The program has come just in time. It will help people understand the dangers that they are likely to face,” said Hodan Hassan, a UNHCR community services officer in the northern Somalia port of Bossaso.

Every year, tens of thousands of people, mainly Ethiopians and Somalis fleeing poverty or conflict and persecution, pay smugglers to ferry them across the Gulf of Aden to the Yemeni coast.

Many never make it, drowning or dying from beatings, shark attacks and other dangers. So far this year, around 300 people have drowned or are missing at sea and presumed dead.

Put together by the BBC World Service Trust with the help of migration experts from UNHCR, IOM and other agencies, the program will help people make an informed decision about whether or not to cross the gulf or to seek asylum in neighboring countries.

The UN agency said the program will feature Somali refugees in Kenya, Ethiopia and Yemen talking about the opportunities and challenges of life in exile, and also from internally displaced people in Somalia.

Interviews with migrants and asylum-seekers show that many would not have undertaken the journey had they known about the risks involved.

In a country where literacy is low and national TV and newspapers non-existent, radio is one of the best ways to reach out to the population as many people have access to a radio set.

The smugglers stop sailing in July and August when the seas are too stormy. Since the beginning of this month, more than 190 boats have arrived at the Yemen coast carrying almost 10,200 people, bringing the total number of arrivals since January to more than 50,000.

UNHCR also hopes the BBC program will sensitize host communities in Somalia, Ethiopia, Kenya and Yemen about the plight of migrants and asylum-seekers and the reasons that lead to their flight.

“It will help in reducing xenophobic feelings directed at Ethiopian migrants and asylum-seekers by the host communities,” said Hassan. Source: (People’s Daily Online)

How can you halve the development cooperation budget when drought and climate change are making food shortages increase?’ This was the response of Bert Koenders, Minister for Development Cooperation, to the news that the World Food Programme needs another 5 billion dollars to save the lives of millions of people in the Horn of Africa.

Mr Koenders called the attitude of the People’s Party for Freedom and Democracy (VVD) and the Freedom Party (PVV), which want to make drastic cuts in the development assistance budget, ‘uncaring and short-sighted. Saving money by trampling on those who are most in need will only swell the numbers of refugees and increase the likelihood of terrorist activity,’ he added.

According to the UN, 24 million people in the Horn of Africa and Kenya are entirely dependent on food aid to survive. ‘Figures like these make it clear just how important it is to release funds for dealing with the effects of climate change,’ the minister said. Mr Koenders has decided to allocate an extra €2 million to emergency aid for Ethiopia, Somalia and Kenya. He is unable to commit any more as he has to make cuts of €550 million in this year’s development budget because it is tied to Gross National Product, which has fallen. Source: (Reliefweb)

Somalia

Mogadishu – African Union soldiers shot dead 11 camels in the Somali capital on Saturday night, mistaking the galloping animals for an insurgent attack, residents said.

Al Shabaab rebels sometimes use passing civilians and vehicles to give them cover before attacks, police said, and the peacekeepers from AMISOM mission thought they were behind the camels which ran past the entrance to Mogadishu’s airport.

“We thought Islamists and AMISOM were fighting last night, but this morning we just saw 11 dead camels,” resident Farah Aden told Reuters. “Each camel had at least 10 bullet wounds – the whole area was covered with blood.”

“We admit there was a mistake and we’ve spoken to the owners,” said Barigye Ba-hoku, spokesperson for the AU troops who face nearly daily attacks from hardline Islamist rebels.

“It was our new forces and they were not aware of the camels’ movements. They say they were attacked, and so opened fire,” he told Reuters.

Violence has killed more than 18 000 Somalis since the start of 2007 and displaced another 1.5 million. Insurgents who want to impose their own harsh version of sharia law have been battling the country’s Western-backed governments and AU forces. Source: (Reuters)

Many of the pirates operating off the coast of Somalia were given special forces-style training from Western firms, a special report by Al Jazeera has found.

Some security firms currently protecting shipping from the pirates had been engaged to train them a decade ago.

One company, Hart Group, coached trainees to be the “coastguard” of Somalia’s semi-autonomous Puntland region – providing protection from illegal fishing in the region.

In this exclusive report, Al Jazeera’s Dan Nolan found that Western companies, involved at all levels of the business, can now expect to make up to half a million dollars from the avergage $2m “ransom and release” contracts they are awarded to solve. Source: (Aljazeera)

SANA’A, Foreign Minster Abu Bakr al-Qirbi discussed here on Monday with his Eritrean counterpart Othman Saleh Mohammed the conditions in Somalia and the necessity of exerting efforts by countries of the region to save its unity and stability.

The meeting also dealt with the bilateral relations between the two countries and means of boosting them and the importance of holding the executive committee to discuss and approve a number of projects presented by the two countries. Source: (Sabanews)