Assessment of Factors Affecting Performance of Agribusiness Enterprises in Somaliland

International Journal of Research and Scientific Innovation (IJRSI) | Volume IX, Issue IV, April 2022 | ISSN 2321–2705

Assessment of Factors Affecting Performance of Agribusiness Enterprises in Somaliland

Samuel Otieno John
Moi University-Kenya, Department of Agricultural Economics and Resource Management in Collaboration with the Abaarso-Tech University and University of Hargeisa, Somaliland.
Corresponding Author

Abstract: In Sub-Saharan Africa, the agricultural sector remains to be the mainstay of the economies. The establishment of agribusiness opportunities offers widespread benefits in terms of food. This study aimed to examine the social, economic, technological, and environmental factors behind the deterioration of the agribusiness sector in Somaliland. The study administered semi-structured questionnaires to 96 respondents in the Gabiley district. The Linear regression results indicate that nine variables, namely; price fluctuation, prolonged drought spell, entrepreneurship training, access to extension services, capital, greenhouse technology, use of mobile money transfer, were statistically significant at 5%. However, four hypothesized variables; farm inputs, land size, education, and availability of farmers’ cooperative societies) were not statistically significant. The study recommends that Somaliland’s ministry of agriculture provide agricultural extension staff and capital to stimulate agribusiness development in the country.

Key Words: Agribusiness, Enterprises, Performance

I. INTRODUCTION

Globally, the agro-industrial development in value addition has become a significant source of income to the economy and has created many employment opportunities worldwide. These industries are dominant in most developing economies regarding the impact in the value addition in the manufacturing sectors (FAO 217; Adhikari et al., 20218). The agro-processing industries can be implemented efficiently in small or medium scales by employing the least cost, labor-intensive technologies. Going the agro-based industry way will relieve economies in job creation, food security, eradication of poverty, and increased farm income, leading to improved living standards (UNIDO, 2017; Wilkinson & Rocha, 2009).
Africa is steadily advancing towards establishing agro-based industries to aid in adding value to its locally produced raw agricultural products to attain the current global demand for the processed agro-products. The current position of Africa in the international market for agricultural commodities is still poor because it trades in raw products, which accounts for 25% of the 60 % non-fuel exports to the world market.
Arguably, the development of agro-processing firms and the establishment of profitable agribusiness opportunities will transform the African markets and increase its net worth in intra-regional trade (Agro-Industries Development Initiatives, 2010).

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