Somaliland Diaspora investing in Somaliland health sector- interview

During my stay in Hargeisa it was difficult to ignore how many Somali expatriates are returning either for summer vacation or to open new businesses. I had the opportunity to sit down with expatriate entrepreneur, Mohamed Ibrahim. Mohamed is from Boston; he has multiple investments in Somaliland and in Boston. Mohamed and a group of investors from the diaspora opened a specialist health center for neurology diagnosis in Hargeisa beginning of this year. I had keen interest to know about this venture. I wanted to know why invest in unrecognized semi-conflict zone like Somaliland. How they are able to sustains their business, and overcome financial and other barriers.

Hargeisa Neurology Clinic works by recruiting specialized foreign doctors to work in Somaliland. Mohamed and his partners recruited two neurology specialists from Pakistan. Because there are not enough skilled doctors in the country, people are compelled to travel to neighboring countries for treatment. Somaliland has one of lowest ratio of doctors per capita (there is 1 doctor every 31,531). There are roughly 111 certified doctors in the whole country, according to 2011 estimate. Brining foreign doctors to work in Somaliland is a difficult task because of instability in the region and bad reputation of the country. Somaliland is unrecognized country situated in a conflict zone. However, unlike Somalia in the South, Somaliland enjoys stability and it has a functioning democracy. In addition, it is one of the poorest regions in the world. It is difficult to give incentives to doctors to live or work in this difficult place.

I was surprised to learn that doctors are coming here for financial reasons. Working in Hargeisa is more rewarding financially for doctors than working for example in Pakistan. Hargeisa Neurology Clinic covers travel expenses, housing, transportation, food and other personal expense for foreign doctors. Because of scarcity of specialists and well-trained doctors, people pay high fees for visiting and foreign doctors. Mohamed told me that his clinic has had patients from as far as Gal Mudug in central Somalia. Mohamed added, “there is money in Somaliland, don’t let the dusty roads fool you… People will spend money for quality care.” Normally charity organizations bring medical volunteers few times every year to do surgical treatment or provide unavailable treatment in the region for the masses. People would line up for days before the arrival of doctors and sometimes pay kickbacks to see visiting doctors. It became obvious there is a business opportunity to bring high-skilled doctors to work in developing countries like Somaliland.     

However, investing in healthcare is a tricky business. It is a costly operation that needs skilled labor, collaborative ecosystem, and high maintenance. In addition, the GDP per capita in Somalia is roughly $333 (2009 estimate, UN). The average person earns less than one dollar per day. It is extremely prohibitive for the majority of the population to seek treatment from quality clinic. Brining foreign doctors can make healthcare unaffordable for the majority of the population. A visit to a private doctor ranges between $3-$20. But it is a much-needed service. Mohamed told me that his clinic is charging below what most specialists are charging.

Healthcare system in the country is in bad shape. People travel to neighboring countries to get treatment. The maternal mortality rate in Somaliland is one of the highest in the world; MMR was 1,013 per 100,000 in the year 2006. Treatable infectious disease like tuberculosis, measles, Malaria, diarrhea are wide spread in Somaliland. The public health service is limited in scope and coverage. Large aid organizations like UNICEF, WHO, FAO, WFP provides the Somaliland with funds and capacity to maintain basic infrastructure of prevalence diseases prevention, surveillance and food security. Similarly, the health private sector in Somaliland lacks adequate resources. There is an urgent need of investment in healthcare in Somaliland.

In this video, I interview Mohamed about his businesses and investment in Somaliland. We discuss what role the Somaliland diaspora can play in the development of the country, the role of technology in creating business opportunities, and difficulties that face investors and entrepreneurs.