Developing and Constructing Market Facilities:

1-Brief Introduction.

Burao is the region capital of Togdher and the second largest city
in Somaliland. Burao was and, still is, a major LS trade centre or
route in the region and services many pastoral tribes and LS
producers, Pastoralists, in various eastern regions. Due to this long
standing relations and connections with rural pastoralists, Burao is
attracting many failing/former pastoralists and rural communities.
As well as many struggling and least well of pastoral families who
rear small LS not far from the city, and few LS husbandry
activities.

As a result, Burao’s population is rapidly increasing and anecdotal

information/evidence indicates that its population is between 350-
500 thousand people. Most local families and households are
either POOR or VERY POOR and without any formal support and
assistance. Unemployment rates are extremely high, some
estimated to be between 65-80 percent. This is particularly acute
within vulnerable and isolated neighbourhoods and communities.
Needless to mention, such groups can hardly access, or with
considerable difficulties, current rundown mainstream social
services in DOWN TOWN BURAO.

2-Background:

Despite above local facts and evidence, Burao is wilfully neglected

and isolated by both development and authority
programmes/institutions rather needlessly. At present authority
structures are either weak or simply unfit to manage and deliver
services for local SH. Likewise, development institutions are either
not there or simply failing/ignoring to create/deliver basic services.
Hence, majority of local SH, both people and LS, are in serious
distress and crying out very loud for genuine support and
assistance. We strongly believe that we can relief above genuine
local distress. We kindly request you to consider and approve this
practical program/proposal, among others, which can generate
100s small family businesses, create many jobs, deliver the goods
and make a positive difference on the ground for targeted
neighbourhoods and communities in Burao.

3-Market facilities/outlets development:

a-Objectives.

-To develop Market Facility/outlets (medium size: 8-

10plots) for selected neighbourhoods in Burao.

Aims:

-Raise the economic status of targeted neighbourhoods.

-Generate 200+ small businesses for poor and low income
families and local SH.
-Create around 10-15 new jobs and employment
opportunities for local households and communities.
-Develop and create basic social services such as MCH, GP
and First Aid clinics in such facilities, if and where possible
-Create a community or meeting hall and so on.

b-How.
-Identify and obtain a suitable land space/plot (8 plots: 1
plot= 40X40 m)
-Identify relevant Funders, public and/or private, develop
and submit an appropriate proposal.
-Setup a Steering Group (SG) or management committee.
-Contract a professional builder/contractor to build the MF.
-Lease/rent space to local stakeholders and family
households ( FHH) by setting up a fair letting scheme.

c-By who.

-A joint partnership between University of Burao (UB) and

CLASS, LS development organisation.

Joint Roles:
-Proposal development, fund raising, engaging all relevant
SH, including service users.

UB Role: Fund holding and Monitoring.

M’s Role: Programme implementation and delivery.

Other Roles: Setup a SG compromising from 5 persons –

UB(1 prs), CLASS(1 prs), Local municipality(1 prs), users
(1 prs) and others( 1 prs). Main to
-ensure smooth program delivery for all SH.
-engage and encourage participation of local SH.
-Oversee management, contracting, recruitment and letting
procedures of MF.
-Setup a fair letting scheme for potential lease holders.
-And so on.
d-For Who.

Burao city was and, still is, rapidly expanding for years and
there are many (8-10) new neighbourhoods without any
local market outlets and basic social services, health in
particular. This is causing enormous hardships and
problems for local communities in these neighbourhoods.
For more details and information, please do hesitate to
contact classdevelopment@gmail.com or
vetcollege.haydar@gmail.com or
ajabmohamed@yahoo.co.uk

e-Why chose above mentioned structures/institutions.

Based on our past and present field experiences, we believe

that formal structures, authorities(local or not) and
development SH/institutions, are successfully failing to
support and assist communities residing in expanding
neighbourhoods in Burao. They not only failed to plan and
setup such facilities and structures. But also not capable of
managing and running them for the common public
benefits and interest due to corrupt and improper practices
against local SH.

Furthermore, stated local institutions and partners have

proven track in establishing relevant local social services
for local communities in Burao since 2004. Besides, they
have the capacity and ability to manage and deliver
proposed programmes. For further details and INFO, please
contact us at below email addresses.

f-MF Development Costs or Budget.

i) Initial Capital Investment. ( One off grant)

-Land/plot expenses ( 10 plots) $ 25,000.00

-MF construction/development $ 90,000.00
-Development manager (10m*$2000) $ 20,000.00
-SG or Management costs $ 5,000.00
---------------
Total $ 140,000.00

ii) Core Running Costs. (per month)

-MF manager $ 600.00

-MF assistant manager/admins. $ 400.00
-Lease/rent Officer $ 300.00
-Security Guards( 2 day, 2 nights) $ 400.00
-MF cleaners ( 2 prs) $ 200.00
-------------
Total. $ 1,900.00
--------------

g-MF Forecasted Income from tenants (rent per

month).

-200 family or individual businesses * $15 $ 3,000.00

-20 shops spaces * $ 20 $ 400.00
-Other charges (clinics, GP, Hall etc) $ 600.00
---------------
Total (income) $ 4,000.00 pm

h-MF Forecasted Net Income (per month).

-Income - Core Costs = Net Income.

- $ 4,000.00 – $ 1,900.00 = $ 2,100.00

Above provisional cost and income forecasts are dependent

on:
-Size, type/functions and location of MF.
-Hence, they might fluctuate, up or down, according to
above mentioned variables.

NB:

If the initial capital investment (ICI) comes from common

public/development resources/funds, we have the following
options:

Option1- Use the generated net income to create further

services for local communities/SH.

Option2- Safe it to re-invest developing MFs for other

neighbourhoods, one at a time.

If ICI comes from private investor, we have to negotiate

with the investor, in advance, what to do with the proceeds.
Of course the private investor can develop such facilities
individually and manage MF accordingly.

Option1- To donate entire profits for common public

interest or

Option2- To donate percentage of profits for common

causes.

Needless to mention, we also developing few other

programme proposals which have the same modalities and
strategies. We strongly believe above Searcher Approach to
develop MF will work for neglected and isolated
communities in targeted neighbourhoods in Burao, women
and other vulnerable local groups.