Case study: Situational Analysis – Somaliland

Somaliland Army

Our client's requirement

Our client, a junior oil company, wished to operate in the breakaway country of Somaliland. While it is generally more democratic and secure than the rest of Somalia, Somaliland does not enjoy international recognition. The company needed to better understand Somaliland's internal politics and to determine the likelihood that it will eventually be accepted by the international community and Somaliland's neighbours as a fully sovereign state with which an international oil company might legitimately agree to develop its resources.

Our approach

Using the insight and expertise of a regionally-based world expert on the Horn of Africa, who has worked with Menas Associates for over 10 years, we produced an extensive analysis of the current situation in Somaliland and of the outlook for international recognition. The report focused on key political players and parties, and their relations with various external interests, including regional actors, international institutions and major western governments, identifying those groups and interests in favour of recognition and those strictly opposing it.

The outcome

Leveraging the expertise of our consultant and our understanding of the oil sector in frontier markets, we provided our client with expert analysis of Somaliland's complex clan structure and the relationship the country has with Somalia, Puntland, Ethiopia, Eritrea, Djibouti and other interested parties. This report enabled our client to make more informed decisions about the viability of its commercial strategy in Somaliland and the longer-term business prospects of the country.

Regions covered

Services provided