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MOGADISHU UNIVERSITY

FACULTY OF ECONOMICS AND MANAGEMENT SCIENCEs

DEPARTMENT OF business administration

Title of the Thesis

The effect of infrastructure


rebuilding in economic development
in Mogadishu-Somalia.

Supervisor Students

Mr. Abdulahi Nor Warsame Mohamed Khalif Abukar


Yahye Hashi Abdillahi
Falis Ali Addow

Academic Year 2019-2020


I

APPROVAL
This thesis is submitted in partial fulfillment of the requirement for the
degree of Becholer in Business Administration.

Mogadishu University
Academic year: 2019-2020

For Graduate Committee


__________________________

__________________________

__________________________

__________________________

Dean of the Faculty of Economics and Management sciences


_____________________________________
II

DECLARATION
We are Mohamed Khalif Abukar, Yahye Hashi Abdullahi and Falis Ali Addow. We do

here by declare that this is our original work under the supervision of Mr. Abdullahi Nor

Warsame and have not been submitted to any other college, institution or university.

The Title of the Thesis

The effect of infrastructure rebuilding in economic


development in Mogadishu-Somalia.

Supervisor Students

Mr. Abdullahi Nor Warsame 1. Mohamed Khalif Abukar

Signature: __________ Signature: ____ Date: __/__/_2020

Date: __/__/2020 2. Yahye Hashi Abdullahi

Signature: ____Date: __/___/_2020

3. Falis Ali Addow.

Signature: ____ Date: __/__/2020


III

DEDICATION ONE
I am Mohamed Khalif Abukar Rage, This work is especially dedicated to my beloved
mother Farhiyo Wehelie Nor and father Khalif Abukar Rage Orey who give me the
greatest love, mercy, supporting, encouragement, nourishment, happiness, protection
from harmful things to me, teaching and all great appreciation to me. I thank my dear
brothers, sisters and friends without their motivation, knowledge, guidance and love I
wouldn’t have the goals I have to strive and be best to reach my dreams. Also I thank my
dear Grandfather Iman Omar Roble and my dear Grandmother Imana dhalin Omar
who supported and facilitated me all affairs related to the university to achieve my goals.

---Mohamed Khalif Abukar Rage.


IV

DEDICATION TWO
I am Yahye Hashi Abdullahi Jimale, This work is especially dedicated to my beloved
mother Saphia Barre Ahmed and father Hashi Abdullahi Jimale who give me the
greatest love, mercy, supporting, encouragement, nourishment, happiness, protection
from harmful things to me, teaching and all great appreciation to me. I thank my dear
brothers, sisters and friends without their motivation, knowledge, guidance and love I
wouldn’t have the goals I have to strive and be best to reach my dreams. Also I thank my
dear Brother Abukar Mohamed Abdullahi my dear uncle Isse Abdullahi Jimale and
my dear aunt Timiro Barre Ahmed who supported and facilitated me all affairs related
to the university to achieve my goals.

---Yahye Hashi Abdullahi Jimale


V

DEDICATION THREE
I am Falis Ali Addow, This work is especially dedicated to my beloved mother Halimo
Mohamud Abdulle and father Ali Addow Omar who give me the greatest love, mercy,
supporting, encouragement, nourishment, happiness, protection from harmful things to
me, teaching and all great appreciation to me. I thank my dear brothers, sisters and
friends without their motivation, knowledge, guidance and love I wouldn’t have the
goals I have to strive and be best to reach my dreams. Also I thank my dear brother
Abdiwali Ali Addow and my dear Grandmother Hakimo Nor Sabrie who supported
and facilitated me all affairs related to the university to achieve my goals.

---Falis Ali Addow


VI

ACKNOWLEDGEMENT
First and foremost, we thank the Almighty Allah for giving us the courage and the
determination, as well as guidance to accomplish our study and this work successfully,
despite all difficulties.

The success of this thesis is attributed to the extensive support and assistance from our
supervisor, Mr. Abdullahi Nor Warsame. We would like to express our grateful gratitude
and sincere appreciation to him for his guidance, valuable advice, supervision,
encouragement and kindness to us throughout this study. Without supervision of this
quality the thesis would never have been completed in a satisfactory manner. Thank you
Mr. for all your support again and again.

We also appreciate here by expressing our deeply thanks to all students who sacrificed
us for their golden time, comments, and feedback on this project by incorporating much
of their feedbacks. Finally, we would also like to express our deep sense of gratitude to
everyone, who contributed to our project development process through encouragement,
technical support and anything else for being helpful. Finally, we thank all those who
assisted, encouraged and supported us during this research, be assured that the Allah will
bless you all for the contributions you made.

Special thanks to our parents for their endless support and prayers, and colleagues and
friends in Mogadishu University for their constructive criticism.

Although it is not possible to name every individual we greatly extend our appreciation
to various persons who directly or indirectly helped us in this research and our
classmates and beloved friends with who we have shared four years in the faculty.
VII

TABLE OF CONTENTS

APPROVAL ....................................................................................................................................... I
DECLARATION ................................................................................................................................ II
DEDICATION ONE .......................................................................................................................... III
DEDICATION TWO ......................................................................................................................... IV
DEDICATION THREE ........................................................................................................................ V
ACKNOWLEDGEMENT ................................................................................................................... VI
TABLE OF CONTENTS .................................................................................................................... VII
LIST OF TABLES .............................................................................................................................. IX
LIST OF FIGURS ............................................................................................................................... X
ABSRACT ........................................................................................................................................ XI
CHAPTER ONE ................................................................................................................................ 1
INTRODUCTION .......................................................................................................................... 1
1.0 Introduction ..................................................................................................................... 1
1.1 Background of the study .................................................................................................. 1
1.2 Problem statement .......................................................................................................... 7
1.3 Significant of the study..................................................................................................... 8
1.4 Objectives of the study .................................................................................................... 9
1.5 Research questions .......................................................................................................... 9
1.6 Scope of the study .......................................................................................................... 10
1.7 Research term ................................................................................................................ 10
1.8 Conceptual frameworks ................................................................................................. 11
CHAPTER TWO.............................................................................................................................. 12
LITERATURE REVIEW ................................................................................................................ 12
2.0 Introduction ................................................................................................................... 12
2.1 The role of roads rebuilding in economic development ................................................ 12
2.2 Effect of seaport rebuilding in economic development ................................................ 15
2.3 Effect of airport rebuilding in economic development .................................................. 17
VIII

CHAPTER THREE ........................................................................................................................... 20


RESEARCH METHODOLOGY ..................................................................................................... 20
3.0 Introduction ................................................................................................................... 20
3.1 Research design ............................................................................................................. 20
3.2 study population ............................................................................................................ 21
3.3 sample size ..................................................................................................................... 21
3.4 sample technique ........................................................................................................... 22
3.5 data collection method .................................................................................................. 22
3.6 research procedure ........................................................................................................ 23
3.7 Data analysis .................................................................................................................. 23
3.8 Validity and reliability of instruments ............................................................................ 23
3.9 Research limitations ....................................................................................................... 24
3.10 Ethical consideration .................................................................................................... 24
CHAPTER FOUR ............................................................................................................................ 25
DATA PRESENTATION, ANALYSISAND DISCUSION OF FINDINGS ............................................. 25
4.0 Introduction ................................................................................................................... 25
4.1: Socio demographic characteristics of the respondents. ............................................... 26
4.2: The effect of roads rebuilding in economic development. ............................................... 32
4.3: The effect of seaport rebuilding in economic development. ....................................... 37
4.4 The effect of airport rebuilding in economic development ........................................... 41
4.5 Discussion of the findings............................................................................................... 46
CHAPTER FIVE............................................................................................................................... 49
CONCLUSION AND RECOMMENDATIONS ................................................................................ 49
5.0 Introductions .................................................................................................................. 49
5.1 Conclusion ...................................................................................................................... 49
5.2 Recommendations ......................................................................................................... 50
Reference ..................................................................................................................................... 51
APPENDICES ................................................................................................................................. 54
APPENDIX (A) Questionnaire ................................................................................................... 54
APPENDIX (B): SOMALIA MAP .................................................................................................. 57
IX

LIST OF TABLES
Table 3. 1 Respondents................................................................................................................. 22

Table 4.1. 1 the gender of the respondents ................................................................................ 26


Table 4.1. 2 Age of the respondent.............................................................................................. 27
Table 4.1. 3 shows the marital status of the respondents........................................................... 28
Table 4.1. 4 shows the Education level of the respondents ........................................................ 29
Table 4.1. 5 shows level of Experience of the respondents......................................................... 30
Table 4.1. 6 shows Job Tittle of the respondents. ....................................................................... 31

Table 4.2. 1 The construction of some Mogadishu roads contributed to economic development.
...................................................................................................................................................... 32
Table 4.2. 2 Mogadishu roads should be reconstructed immediately, otherwise it will hurt the
local economy. ............................................................................................................................. 33
Table 4.2. 3 Mogadishu land transportation may be improved by repairing the current broken
roads. ............................................................................................................................................ 34
Table 4.2. 4 Another major problem in Mogadishu land transportation is overloaded vehicles. . 35
Table 4.2. 5 If roads are constructed, the goods will quickly reach the markets. ....................... 36

Table 4.3. 1 Mogadishu is a large city so that one seaport in not enough to develop its economy.
...................................................................................................................................................... 37
Table 4.3. 2 The current structure of Mogadishu seaport is not enough to imported goods. ....... 38
Table 4.3. 3 Mogadishu seaport needs immediate reconstruction. ............................................... 39
Table 4.3. 4 Ships and large cargo vessels don’t have enough space when entering to Mogadishu
seaport. ......................................................................................................................................... 40

Table 4.4. 1 Airport are the backbone of the development of economic. ..................................... 41
Table 4.4. 2 Airport development has also been linked with economic development. ............... 42
Table 4.4. 3 Airport transport infrastructure improvement will develop local economy. ............ 43
Table 4.4. 4 Heavy presence of troops within the airport damaged the economic development. 44
Table 4.4. 5 The limited space of the airport is a constraint to the economic growth of the city. 45
X

LIST OF FIGURS
Figure 1. 1 Conceptual Framework .............................................................................................. 11

Figure 4.1. 1 Gender of the respondents ..................................................................................... 26


Figure 4.1. 2 Age of the respondent ............................................................................................ 27
Figure 4.1. 3 shows the marital status of the respondents. ........................................................ 28
Figure 4.1. 4 show the Educational level of the respondents. .................................................... 29
Figure 4.1. 5 shows level of Experience of the respondents. ...................................................... 30
Figure 4.1. 6 shows job tittle of the respondents. ....................................................................... 31

Figure 4.2. 1 The construction of some Mogadishu roads contributed to economic development.
...................................................................................................................................................... 32
Figure 4.2. 2 Mogadishu roads should be reconstructed immediately, otherwise it will hurt the
local economy. ............................................................................................................................. 33
Figure 4.2. 3 Mogadishu land transportation may be improved by repairing the current broken
roads. ............................................................................................................................................ 34
Figure 4.2. 4 Another major problem in Mogadishu land transportation is overloaded vehicles.35
Figure 4.2. 5 If roads are constructed, the goods will quickly reach the markets. ..................... 36

Figure 4.3. 1 Mogadishu is a large city so that one seaport in not enough to develop its economy.
...................................................................................................................................................... 37
Figure 4.3. 2 The current structure of Mogadishu seaport is not enough to imported goods. ...... 38
Figure 4.3. 3 Mogadishu seaport needs immediate reconstruction............................................... 39
Figure 4.3. 4 Ships and large cargo vessels don’t have enough space when entering to Mogadishu
seaport. ......................................................................................................................................... 40

Figure 4.4. 1 Airport are the backbone of the development of economic. .................................. 41
Figure 4.4. 2 Airport development has also been linked with economic development. ............... 42
Figure 4.4. 3 Airport transport infrastructure improvement will develop local economy. ........... 43
Figure 4.4. 4 Heavy presence of troops within the airport damaged the economic development. 44
Figure 4.4. 5 The limited space of the airport is a constraint to the economic growth of the city.
...................................................................................................................................................... 45
XI

ABSRACT

The purpose of this study was to examine the effect of infrastructure rebuilding in
economic development and its specific objectives are to identify the effect of roads
rebuilding in economic development, to find out the effect of seaport rebuilding in
economic development, to determine the effect of airport rebuilding in economic
development.

The research design in this study was used descriptive design and quantitative approach.
The study population was 50 economics, engineering, businessmen and civil society who
live in Mogadishu. By using the Slovene‘s formula used for sample size in this research
was 44 respondents. The sampling procedure was sample random sampling and the
research instrument was structured questionnaire by the researchers used a modern
technology, special Statistical Package for Social Science (SPSS) V.20 and Microsoft
Excel 2016 to analyze the data. The statistical tools aligned with the objective of the
research. For this purpose, frequency tables and percentages as well as charts were used
to present the data.

The result founded from the analysis of the research data indicates that the roads
rebuilding has potential effect on economics development means that construction of
some Mogadishu roads contributes to economic development and also If roads are
constructed, the goods will quickly reach the markets. The outcome founded from the
analysis of research data show that the seaport rebuilding has significant impact on
economic development meanwhile seaport vital role economic development as well as
Mogadishu seaport needs immediate reconstruction to growth local economy.

Finally the research indicates that the effect of airport rebuilding has vital impact on
economic development meanwhile Airport are the backbone of the development of
economic and also Airport transport infrastructure improvement will develop local
economy
1

CHAPTER ONE

INTRODUCTION
1.0 Introduction

This Study will focus on the following sections; Background of the study, problem
statement, significant of the study, research objectives, and research questions, scope of
the study, operational definitions and the study conceptual / Framework of the study.

1.1 Background of the study

Infrastructure is generally defined as the physical framework of facilities through which


goods and services are provides to the public. Its linkages to the economy are multiple
and complex, because it affects production and consumption directly, creates positive
and negative spillover effects and involves large inflow of expenditure (Deepika Goel,
2002).

In Turkey, has a strong global presence in the construction sector, and it is not surprising
therefore that it has been involved in a number of infrastructure projects (14 in total
since 2000), particularly in the airport and oil- infrastructure sectors. Although Turkey
has a growing aid programmed, its participation in Africa’s infrastructure sectors has
been driven by its private sector winning open tenders. However most of these projects
have been in North Africa, Turkey is now making major push for deeper involvement in
SSA. Exports of construction equipment to Africa have been minimal(NEPAD, 2011).

In Japan, Economic infrastructure was also a serious bottleneck for Japan in the postwar
years, just as it is in the least developed countries LDCs today. External conditions in
Japan, however, were different, as the opportunities for borrowing from abroad were
limited. In addition, public private partnerships (PPP) were still unknown, and
investments for economic infrastructure were taken for granted to be the role of the
government. To finance investment in economic infrastructure, the government
extensively utilized a fiscal investment and loan programmed (FILP). The FILP was a
2

budgetary system prepared in addition to the central government’s general budget, and
was financed mainly by postal savings until fiscal year 2000. Japan received loans from
the World Bank in 1953-66, for investment mainly in power plants, steel plants, freeway
construction, and the bullet train. However, the total loan amount of the period was
US$862.9 million which accounted for only a few percentage points of Japan’s total
investments (Fukunari Kimura, 2009).

In Afghanistan, The donor-driven economy has not helped the economic and social
infrastructure of Afghanistan and the development process remains ineffective.
Furthermore, it has created an unequal economic power relationship between the small
economic and political elite and the average Afghan. This has also created extreme
conditions of exploitation, where the small ruling elite is able to make gains at the
expense of the majority. The free market approach, which has been implemented in
Afghanistan, is not succeeding in Afghanistan and the Afghan economy is not able to
provide the security people require. The international community and the government of
Afghanistan need to shift emphasis to focus on the complex issues of Afghanistan’s
economy and politics. In addition to focusing on infrastructure development, attention
must shift to human resources development, institutional approaches, targeted and
coordinated economic strategies, and transparent government policies and procedures.
Rather than concentrating on a donor driven and service economy, the government of
Afghanistan and the international community need to focus on agricultural and rural
development, electricity, water, power supply, roads and transportation facilities,
sanitation and disease control, local farm and non-farm industries, and natural-resources
extraction. Implementing such policies will create markets for domestic agricultural
goods, which on one side will be plentiful and on the other side cheaper than what is
now available. Strong and large domestic agriculture markets will result in rise of
income for farmers. It will also develop and increase manufacturing and would enable
the processing industries to purchase raw materials in large quantities and profitable
prices. This will help the economic cycle to start moving in a positive direction (Abdul-
Qayum Mohmand, 2012).
3

In Nigeria, Studies revealing the existence of relationship between institutions and


economic performance agree that there is a close link between the two and that such
relationship may be direct or indirect, some institutions infrastructures are qualified as
good and others as weak. While good institutions infrastructures promote economic
performance, weak institutions infrastructures retard same, Generally, institutions
infrastructures are of varied nature, and each country has a distinctive historical,
religious, social and cultural background, as such, a blueprint of institutions
infrastructure development that equally fit all countries doesn’t exist. a comprehensive
set of institutional changes is not required for initiating growth rather; small but key
changes in some institutions infrastructures can have positively significant effect on
economic performance. However, the problem lies in identifying the most pressing
institutions infrastructures that are required to stimulate economic performance and thus
enhance growth and development (E.O.Anwana, 2018).

In Somalia, The economy is estimated to have grown by 3.7 per cent and inflation
contained to just1percent in 2015.The gross domestic product (GDP) per capital of
Somalia is estimated at $450. On the other hand, the trade deficit widened to nearly $3
billion. The trade deficit is financed mainly with international development assistance
and remittances, which leaves the economy vulnerable to external shocks. Agriculture
makes up about 60 per cent of GDP, a share that has remained relatively stable since
2000. The share of services in GDP grew in the 1990s, but has plateau since then.
Financial services and telecommunications are currently among the most dynamic
service activities and have notable potential for future growth (United Nations, 2016).

The term “infrastructure” generally conjures up the notion of physical resource systems
made by humans for public consumption. A list of familiar examples includes:
(1) transportation systems, such as highway and road systems, railways, airline systems,
and ports; (2) communication systems, such as telephone networks and postal services;
(3) governance systems, such as court systems; and, (4) basic public services and
facilities, such as schools, sewers, and water systems. I refer to these resources as
“traditional infrastructure.”
4

Two generalizations about traditional infrastructure are worth noting at the outset. First,
the government has played and continues to play a significant and widely–accepted role
in ensuring the provision of many traditional infrastructures. While private parties and
markets play an increasingly important role in providing many types of traditional
infrastructure (due to a wave of privatization as well as cooperative ventures between
industry and government), the government’s position as provider, coordinator, or
regulator of traditional infrastructure remains intact in most communities.

Second, traditional infrastructures are generally managed in an openly accessible


manner. That is, they are managed such that the resources are openly accessible to
members of a community who wish to use the resources. This does not, however, mean
that access is free. We pay tolls to access highways, we buy stamps to send letters, and
we pay telephone companies to have our calls routed across their lines, and so on. Users
must pay for access to some (though not all) of these resources. Nor does it mean that
access to the resource is unregulated. Transportation of hazardous substances by
highway or mail, for example, is heavily regulated. The key point is that the resource is
openly accessible to all within a community regardless of the identity of the end–user or
the end–use. As discussed below, managing traditional infrastructure in this fashion
makes economic sense.

Infrastructure resources constitute an important class of resources for which society


should value nondiscriminatory public access. Yet conventional economic analysis of
many infrastructure resources fails to fully account for how the resources are used as
inputs to create social benefits. Economists (regulators, politicians, and others) recognize
that there is a tremendous demand for public infrastructure and that infrastructure plays a
critical role in economic development, but exactly why there is demand, how it
manifests, how it should be measured, and how it contributes to human well–being is not
fully understood. Critically, many infrastructure resources act as inputs into a wide
variety of socially valuable productive activities, including the production of public
5

goods and non–market goods. These activities generate significant social welfare gains
generally associated with traditional infrastructure (Brett M. Frischmann, 2007)

The relationship of Infrastructure in economic development, the availability of high


quality infrastructure is very important in supporting economic development in at least
two ways: it facilitates the development of new economic activities that leads to
economic development, while it also increases general quality of life and opens up
opportunities to reduce inequalities and poverty incidence. Sufficient infrastructure
would allow greater investment in the economy, create demand for employment and
increase income that generates further economic activities. It also enables the
development of human capital by providing access to healthier lifestyles and better
education. Many theoretical and empirical studies show that the availability of
infrastructure improves the long-term production and income levels of an economy.
Empirical studies from the World Bank, for example, have shown high rates of return on
infrastructure investment, while per capita availability of major infrastructure is closely
related to income levels. Studies on Indonesia also show that infrastructure, especially
road conditions and electricity, significantly affect the growth of income per capita in
the country (Yose Rizal Damuri, 2017).

Infrastructure is the capital stock that provides public goods and services. It produces
various effects, including those on production activities and quality of life for the
households, which thus permeate the entire society. (Naoyuki Yoshino, Masaki
Nakahigashi, 2000).

What is Economic Development: No single definition incorporates all of the different


strands of economic development. Typically economic development can be described in
terms of objectives. These are most commonly described as the creation of jobs and
wealth, and the improvement of quality of life. Economic development can also be
described as a process that influences growth and restructuring of an economy to
enhance the economic well-being of a community (The International Economic
Development Council’s, 2018).
6

Although infrastructure spending has garnered increased attention recently, there is no


generally agreed-upon definition of infrastructure. In general, the term refers to longer-
lived, capital intensive systems and facilities. Some restrict the definition to include
systems and facilities that have traditionally been provided by the public sector, such as
highways and water treatment facilities. However, others include predominantly
privately owned systems and facilities, such as those involved in electricity production
and distribution. The definition of infrastructure can be extended even further to include
research and development expenditures, as they add to the stock of technology and
information available for use by private individuals (Jeffrey M. Stupak, 2018).

Infrastructure is the basic equipment and structures such as roads and bridges that are
needed for a country, region, or organization to function properly. Infrastructure
contributes to economic development by increasing productivity and providing services,
which enhance the quality of life. The services generated as a result of an adequate
infrastructure base will translate to an increase in aggregate output such as increased
agriculture output of farmers through improved roads, creation of a sea ports, Rail links.,
Electrical generation, transmission and distribution, Water and irrigation projects,-
Increase quality of life and Urbanization of different areas (Prof. Hassan Osman
Gaal,2017).

The lack of infrastructure is hindering the economic growth in many developing


countries. Infrastructure investment has the effects of contributing to increase the
productivity and it is expected to contribute to future economic growth in developing
countries where infrastructure is still insufficient. Therefore, infrastructure development
is one of the most integral parts of the public policies in developing countries.
Supporting infrastructure development in developing countries by advanced countries is
extremely important field. This can be inferred from the fact that many international
organizations such as World Bank and OECD are actively promoting the improvement
of infrastructure by providing various support programs to developing countries.
However, the precise relationship between infrastructure and economic growth is still
frequently debated (Byoungki KIM, 2006).
7

The development and maintenance of essential physical infrastructure is an important


ingredient for sustained economic growth. Poor infrastructure is perhaps the most
binding constraint to economic growth of developing countries like Pakistan. Physical
infrastructure refers to facilities and structures that are essential to the functioning of the
economy. For present purposes, it comprises roads, bridges, railways and transit
systems, airports, air traffic control systems, waterways, and water supply, and
wastewater treatment systems, hospitals, energy and power generation. Such
infrastructure underpins economic activity by facilitating the movement of people and
goods and by providing environment essential for growth. Because it has some
characteristics of a "natural monopoly" in particular, high fixed costs that may inhibit
private investors, it is generally provided by some level of government. So the
investment into the infrastructure plays an important role to achieve the social objectives
and that are contributing to the sustained economic growth. Likewise when investment is
made into the transport infrastructure it improves the access to services and markets in
rural areas (Syed Zeeshan Haider el at, 2012).

There is broad consensus that infrastructure is beneficial to growth and development.


Infrastructure contributes to growth and development via productivity gains, and by
reducing adjustment costs, especially for small firms, increasing the durability of private
capital and markedly improving health and educational outcomes (United Nations,
2013).

Although economic development is a significant problem in Somalia, however, there are


no sufficient studies related to the problem under investigation, therefore, this study is
aimed to determine the effect of infrastructure rebuilding in economic development in
Mogadishu – Somalia.

1.2 Problem statement

One of the major contributors of country’s economic development is to have a highly


sophisticated and well invested set of economic infrastructures. Among them is transport
infrastructure which plays a linkage role of other economic development. In this study,
8

transport infrastructure contains roads, seaports and airports, since Somalia has no
railways and underground tubes. These transportation facilities, if well equipped, not
only contribute easy movement of both people and their commodities, but also advances
cost effectiveness and product competitiveness in both local and international markets
by enhancing market supply chain process.

In Somalia, the greatest market is Bakara which locates in Mogadishu. The improvement
of Mogadishu transport infrastructure such as roads and ports makes the commodity
available in the markets at the right time. If Mogadishu airport and seaport function
properly, supply of goods imported from outside runs smoothly to the market. This
situation exists when everything is operating as it ought to, but the reality on the ground
is totally different.

In Mogadishu, due to almost thirty years of instability, the main roads are either blocked
or totally destroyed. It takes a lot of time to transfer goods from seaport or airport to the
market. In some places, the roads are totally broken which causes vehicles to overturn,
increasing the transportation costs. Although Mogadishu has a few number of bridges,
they are affected by ongoing wars and they need a large repair. Therefore there is a need
to investigate the role of infrastructure rebuilding in economic development in
Mogadishu – Somalia.

1.3 Significant of the study

This study will be useful for future researchers because it will act as a source of
information and also a guideline for them to follow in the subsequent studies to the same
problem under investigations.

The study will also be useful for institutions both public and private because it update
them on the existing issues and proper ways to handle them. It also guides them to take
appropriate action to come up with long lasting solutions for the existing problems.
9

The study will also be benefitted by the local community because it creates conscious
awareness on the problem and the need to address it. This will help local authorities and
other partners to persuade the community to easily consume the services that are
intended to address the problem.

1.4 Objectives of the study

1.4.1 General objectives

The general objective of the study is to identify the effect of infrastructure rebuilding in
economic development in Mogadishu – Somalia.

1.4.2 Specific objectives

In addition to the above mentioned general objective, the research has also specific
objectives to achieve. The study was view infrastructure as roads, seaports, and airports,
the following were the specific objectives of the study:

1. To identify the effect of roads rebuilding in economic development in Mogadishu –


Somalia.
2. To find out the effect of seaport rebuilding in economic development in Mogadishu –
Somalia.
3. To determine the effect of airport rebuilding in economic development in Mogadishu
– Somalia.

1.5 Research questions

The study answered the following questions:

1. What is the effect of roads rebuilding in economic development in Mogadishu-


Somalia?
2. What is the effect of seaport rebuilding in economic development in Mogadishu-
Somalia?
10

3. What is the effect of airport rebuilding in economic development in Mogadishu-


Somalia?

1.6 Scope of the study

1.6.1 Time scope


This study will be conducted between March to June, 2020. This is the time period that
university board of research has allocated for the students to conduct their studies.

1.6.2 Geographical scope


This study will be conducted in Mogadishu, Somalia. Mogadishu provides an optimum
location for this type of study because it hosts the biggest number of lack infrastructure
in Somalia.

1.6.3 Content scope


This study will focus on the effect of infrastructure rebuilding in economic development
in Mogadishu – Somalia. The study will specifically focus on the effect of roads, seaport
and airport in economic development.

1.7 Research term


Infrastructure is generally defined as the physical framework of facilities through
which goods and services are provided to the public (Deepika Goel, 2002).

Roads mean any highway to which the public has access. It also includes any bridges
over which a road passes.

A seaport is located on the coast where ship can dock for transferring cargo and people
out of the ships. The location of the ports is based on the ability to provide access to land
and ensure adequate depth of water for a ship to enter and dock.

Airport a place from which aircraft operate that usually has paved runways and
maintenance facilities and often serves as a terminal
11

Economic development can also be described as a process that influences growth and
restructuring of an economy to enhance the economic well-being of a community (The
International Economic Development Council’s, 2018).

1.8 Conceptual frameworks

Figure 1. 1 Conceptual Framework

Independent variable (IV) Dependent variable (DV)

Infrastructure rebuilding

 Roads

Economic development
 Seaports

 Airports
12

CHAPTER TWO

LITERATURE REVIEW
2.0 Introduction

This presents a variety of literature pertaining to the effect of infrastructure rebuilding in


economic development. These literatures have been retrieved from various books,
articles, journals, studies and reports relating to the issue at hand. The literature
specifically focused on the effect of roads, seaport and airport in economic development.

2.1 The role of roads rebuilding in economic development


Roads are an integral part of the transport system. A country’s road network should be
efficient in order to maximize economic and social benefits. They play a significant role
in achieving national development and contributing to the overall performance and
social functioning of the community. It is acknowledged that roads enhance mobility,
taking people out of isolation and therefore poverty. Roads play a very important role in
the socio-economic development of the country but meanwhile this expansion also pose
great challenges to the safety and security of the travelling public. The road transport
industry is the backbone of strong economies and dynamic societies. It is therefore
legitimate and indispensable to safeguard an industry that is vital to economic growth,
social development, prosperity and, ultimately, peace and which plays a crucial role in
everyone’s life in industrialized and developing countries alike by meeting the demand
for the sustainable mobility of both people and goods. The road transport industry is
indeed instrumental in interconnecting all businesses to all major world markets, driving
trade, creating employment, ensuring a better distribution of wealth and uniting
mankind. It plays a crucial role in the daily economic and social life of industrialized
and developing countries alike. For this reason, any penalty on road transport is an even
greater penalty for the economy as a whole.
13

The importance of roads in connecting the vast rural areas of India to form the national
market and economy cannot be overstated. Connectivity provided by roads is perhaps
the single most important determinant of wellbeing and the quality of life of people
living in an urban area. The efficiency of the innumerable government programmed
aimed at rural development, employment generation, and local industrialization is, to
large extent, determined by the connectivity provided by roads (Transportation et al.,
n.d.).

The discussion on the effects of investment on transport infrastructure and economic


development is not new. Since the first highways and railroads were built, one of the
main discussions has been the resulting impact of the new infrastructure on production
costs. Transport investment has territorial repercussions that modify space and the
economic activities and lifestyles it contains, ultimately causing or hastening changes in
the structures and dynamics of the group affected. Initially, since network
interconnection was limited, impacts were clearly identified and causal relationships
could be deduced (Obregón Biosca et al., 2014).

A breadth of research revealed that the road infrastructure development were positively
associated with economic growth. Generally, road infrastructure plays a crucial role by
providing mobility for the efficient movements of people, goods and services as well as
providing accessibility to land and a wide variety of commercial and social activities.
The provision of road infrastructure not only lower the physical barrier by stimulating
the movements of people, goods and services but also improve access to markets, social
services and employment by reducing the overall transportation times and costs. The
development or provision of high mobility road infrastructure such as expressway can
increase the speed and improve the efficiency of domestic and international trades by
reducing the transportation times and costs; whilst the development or provision of high
accessibility road infrastructure such as local road allow easy land access and promote
commercial and social activities at local level Empirical studies and scientific evidence
show that the investment in paved roads, especially in countries with shortages of road
14

infrastructure have been proven to provide an impressive return in economy (C P Ng et


al 2019) .

The development of transport road network plays an important role in the economic
development of a country and, therefore the kilometer-age of paved roads existing in a
country is often used as an index to assess the extent of its development. The proper
development of transport road network not only reduces the cost of transportation both
in terms of money and time but also helps in the integration of various regions within the
country and better understanding of neighboring countries at the international level. The
transport road network in Saudi Arabia contributed to the development of the country by
bringing in direct benefits from its role in the development of some sectors such as
minerals, agriculture, industry and commerce. In vast countries like the Kingdom of
Saudi Arabia where the main population centers are not only scattered all over the
country but are also separated by deserts, sand dunes, valleys and mountains, reliable
transport road network become all the more important and essential. Therefore, this
paper aims to identify the level of transport road network in Saudi Arabia(Aldagheiri,
2009).

According to (Eberts, 2000),The interface between transportation investment and


economic development has broad ramifications that go beyond transportation’s basic
purpose of moving goods and people from one place to another. Whereas there is no
doubt that transportation is essential in the operation of a market economy, much still
needs to be understood about ways in which an efficient transportation system can
improve the productivity of the economy. Transportation also has a broader role in
shaping development and the environment. Policy concerns in the next millennium will
increasingly focus on the effects of transportation on where people live and on where
businesses locate; and on the effects that these location decisions have on land use
patterns, congestion of urban transportation systems, use of natural resources, air and
water quality, and the overall quality of life. Issues of urban sprawl, farmland
preservation, and air and water quality have already pushed their way to the forefront of
policy debates at both the national and local levels. To make prudent decisions, policy
15

makers must be equipped with the best information and analysis possible about the
interactions among these various factors.

2.2 Effect of seaport rebuilding in economic development

When looking at the history of Seaports and their influence on creating wealth to the
regions they are situated, it is necessary to look at the history of sea trade. Ports like
shipping which are complimentary to each other are the mother of seaborne trade, the
significance of a seaport and shipping to economic development will be appreciated if
the need for trade is understood. The need for trade arises from the global and regional
unequal distribution of natural resources. This difference necessitates exchange and
hence the movement of goods from one place to the other and sometimes across oceans.
The difference in resources is the biggest driving force for trade, The importance of
seaports and shipping in this scheme of things is the ability of shipping to provide cheap
and fast transport of the goods produced and exchanged, and seaports to facilitate that
transfer of the goods from sea to land (Chai, 2005).

According to (AFDB & UNECA, 2017) In today’s interdependent and globalized world,
efficient and cost-effective transportation systems that link global supply chains are the
engine fueling economic development and prosperity. Estimates that 80 per cent of
global merchandise trade by volume is carried out by sea and handled by ports
worldwide, which makes maritime transport a strategic economic trade enabler. The
trade competitiveness of all countries - developed and developing alike, and including
landlocked countries - depends heavily on effective access to international shipping
services and port networks. In Africa, however, the inadequacy of basic infrastructure
including maritime information has been a major factor in the lack of diversification and
competiveness of African economies, the continent’s marginalization in the dynamic
sectors of regional and global trade, and its relatively low level of intraregional trade.
Compared to the other regions of the world, both developed and developing, the
impediment to production and trade arising from the underdevelopment of infrastructure
is much more severe in Africa. Yet, the continent boasts of an abundance of natural
16

resources, in particular aquatic and marine resources, with a potential that has not yet
been fully tapped in the context of economic growth and sustainable development
including transportation and trade. The African Great Lakes constitute the largest
proportion of surface freshwater in the world (27%), whereas, Lake Victoria is the third
largest fresh water lake in the world by area, and Lake Tanganyika is the second largest
in volume and depth in the world.

In Africa as with the rest of the world, the importance of seaports to trade, and therefore
to the continent’s economic performance cannot be overstated. Ports are crucial for trade
of most African countries due to the continent’s high dependency on exports of raw
materials and imports of food, manufactured goods and fuel. For example, more than 90
percent of Africa’s total trade (including imports and exports) pass through seaports
Ports throughput in the continent are expected to rise from 265 million tons in 2009 to
more than 2 billion tons in 2040. In addition, some of the most strategic gateways for
international trade are located in Africa. For example, although Mauritius is a small
country with 1 850 square kilometers, when accounting for its territorial waters, it
becomes very large with 1.9 million square kilometers. Furthermore, considering the
large number of landlocked countries in Africa (16 out of 54 countries), seaports
competitiveness across the continent remain strategic. This will contribute to improving
access of the landlocked countries, which depend on their neighboring transit seaports,
to global markets.

As Africa strives to become a bigger stakeholder in the global economy, it is imperative


that concerted efforts are channeled towards the advancement of a safe, secure, efficient
and sustainable maritime transport with simplified and minimized formalities and
procedures to enhance the competitiveness of African products in order for Africa to
trade itself out of poverty.

Seaports are important nodes in the intermodal transport; their earlier narrow focus on
cargo handling has been replaced with a wide range of logistic activities giving the
seaports a more active role in the transport chain. However, there has been a trend in
17

organizational and technological changes towards offering door-to-door transport


solutions rather than port-to-port, The main problems seaports face today, as a result of
growing containerized transport, are lack of space at seaport terminals and increased
bottlenecks in the land-side transport system serving the seaports. For some seaports the
weakest link in their transport chain is their back door, where congested roads or
inadequate connections cause delays and raise transport costs. Therefore, the strategic
decision would be the implementation of rail and improved inland intermodal terminals
serving seaports (Violeta Roso, 2009).

The merchandise exports are considered as one of the main levers on which countries
expect to rely for sustainable economic development. The development of exports
increases the efficiency of producers, allows a better use of resources and for the
developing countries to obtain hard currency. Thus, governments attempt to provide all
the appropriate conditions to promote their merchandise exports. The analysis of the
determinants of merchandise exports should be viewed as a necessity in the context of
contemporary trends of liberalization of trade. The literature studying the merchandise
exports shows that the principal factors analyzed in the issue of determinants of
merchandise exports where the exchange rate, the gross domestic product, consumer
price index, and cost of the export. Other variables have recently attracted the attention
of countries' economic decision-makers and economic analysts as determinants of
merchandise exports such as the quality of seaport infrastructure, the quality of
performance logistics and the shipping connectivity (Tahar Ammar Jouili, 2019).

2.3 Effect of airport rebuilding in economic development


Airports provide facilities and services to many organizations involved in air
transportation. These agencies play different roles. In addition to direct customers,
airports need to deal with a number of external partners, who in spite of their remoteness
play an important role in the success of an airport. We can formulate a definition such
as: An airport is a facility where exchange takes place between land transportation and
the air mode of transportation. This definition introduces inter-modal processing but
18

does not talk about a situation where you would arrive by air and depart by air without
exiting the airport. However, in a given airport the number of connecting passengers
represents only a small percentage compared to the total traffic (N.Sumathi, 2018).

As an archipelago country, Indonesia faces serious limitation in connecting the whole


country. Over the last decade, air transport has become a reliable solution as a mean to
connect each area and province. Nowadays, it is the cheapest and fastest way to travel all
around Indonesia. The air transport liberalization in 2004 has doubled the number of air
passenger from 12 million in 2003 to 26 million in 2004. Acknowledging the large
potential of air transport users, Indonesian government is trying to accommodate the air
transport growth by rebuilding its Infrastructure. Currently, Indonesian government is
trying to rebuild its air transport industry by building new airports throughout the
archipelago and renovate their major airports to increase their capacity. As a tourism-
oriented country, Indonesia’s tourism sector is seen as the main contributor to the
economic development. It is currently the second largest contributor to the national
account of total Gross Domestic Product (IGNI Dharmawan, 2012).

According to (Green, 2014) Cities around the world are separated by physical distance,
but individuals can travel relatively easily between cities using various forms of
transportation. Air travel not only connects people but it connects economies to further
develop the global economy. Airport development has also been linked with economic
development. Much research has been done on this relationship, with focuses on
different regions and cities around the world. In particular, studies that focus specifically
on Chinese and Canadian airport economics, as well as metropolitan airport
development in general, provide insight into this important economic relationship and
the implications it can have on new airport development. A new research study that
stems from these previously explored relationships can look into the ongoing
construction of the new terminal at Raleigh-Durham International Airport (RDU) and its
relationship with economic development in the surrounding urban area. The correlation
between airport and economic development is important, but determining a cause-and-
19

effect relationship can be very useful in understanding the economics of the Triangle
region as well as other regions around the country and the world. Thus, it is necessary to
analyze similar situations worldwide to provide a background understanding of the
issues at hand, as well as to develop models that can be used to analyze the specific
situation at RDU.

According to (p.s.senguttuvan, 2006).The growth of air transport has produced number


of advantages on economic and social impacts at the local and global scale. The first and
foremost is generating employment opportunities directly and indirectly and this
stimulated the regional and global economy. Air transportation helps in integrating
different regions for cultural co-ordination to attain social progress. Further it helps in
environmental protection by prudent use of natural resources. The economic regulation
of international air transport is going through a dynamic change as a result of increasing
competition, transnationalization of business, globalization of the world economy and
the emergence of regional economic groups, privatization and liberalization of service
industries. In this scenario, the increasing air traffic demand reveals the shortage of
airport infrastructure capacity as the crucial one. In particular, some of the matured air
transport regions/ markets in US, Europe and some regions in the Asia pacific, the
airport capacity has been affected by different operational, economic and environmental
constraints, which have started to act as “Blockage “ in impeding the future growth of
airports and air traffic demand.
20

CHAPTER THREE

RESEARCH METHODOLOGY
3.0 Introduction

This chapter presents different units of methodology including research design, study
population, target population, sample size, sampling techniques, data collection method,
data analysis, limitations and ethical considerations of the study.

3.1 Research design

Research design is a pre-planned sketch for the explanation of a problem. It is the first
step to take and the whole research. A research design is a framework or blueprint for
conducting the research project. It details the procedures necessary for obtaining the
information needed to structure or solve research problems. In simple words it is the
general plan of how to go about the research. Research design is the plan, structure and
strategy of investigation conceived so as to obtain answers to research questions and to
control variance.

This study was descriptive design which means to describe the research problem rather
than analyzing and detailing the problem. Descriptive research is used
to describe characteristics of a population or phenomenon being studied. It does not
answer questions about how/when/why the characteristics occurred. Thus, descriptive
research cannot be used as the basis of a causal relationship, where one variable affects
another.

It was cross sectional in design, which involves looking at people who differ on one key
characteristic at one specific point in time. The data is collected at the same time from
people who are similar on other characteristics but different on a key factor of interest
such as age, income levels, or geographic location.
21

The study adopted quantitative research approach which focuses on gathering numerical
data and generalizing it across groups of people or to explain a particular phenomenon.
Quantitative research deals in numbers, logic, and an objective stance. Quantitative
research focuses on numeric and unchanging data and detailed, convergent reasoning
rather than divergent reasoning.

3.2 study population

Mogadishu is the capital city of Somalia. Mogadishu locates in the southern part of
Somalia. It borders with middle Shabelle in the east and north, it also borders with lower
Shabelle in the with and Indian Ocean in the south. Mogadishu has seventh districts
include Yaqshid, Holw-wadag, Hodan, Daynile, Kahda, and Xamar-jajab and so on.

There are a lot of famous places with Mogadishu including Villa Somalia, Adan Adde
International airport, Mogadishu seaport and Makkal mukarama road.

3.2.1 Target population


During data collection, the researchers were target economists, engineers, business men
and civil society. These groups were regarded as the target population for this type of
study.

3.3 sample size

Sloven’s formula was used in order to determine sample size.

𝑁
n = 1+𝑁(𝑒)2

Where

n= the required sample size

N=the target population

e = standard error or level of significance (0.05 or 5%).


22

50
n=
1+50(0.05)2

n  44 respondents.

Table 3. 1 Respondents

No Category Population Sample size


1 Economists 10 9
2 Engineers 14 12
3 Business men 15 13
4 Civil society 11 10
Total 50 44

Source: Primary data, 2020.

3.4 sample technique

During sampling, non probability/purposive sampling will be used to selected


participants from the target population. In this type of sampling, the researcher is the one
to decide who participants the study and who will and the target population will not have
equal chance to participate the study.

3.5 data collection method

Closed questionnaire was used to collect research data. Questionnaire is most


appropriate data collection tool to be adopted for this study because the study is
quantitative in design. Respondents were briefed about the study and its objective. The
content of the questionnaire was explained for them and was also requested to answer
the questions as honest as possible.
23

3.6 research procedure

Data was collected from 44 respondents who are from economists, engineers, business
men and civil society in Mogadishu during 2020 by using questionnaires.

3.7 Data analysis


Data for this study was analyzed using the analytical approach because the data that was
collected for the current study would be quantitative in nature. The researcher used a
modern technology and special Statistical Package for Social Science (SPSS) 16.0 to
analyze the data. Descriptive statistics was used for measuring means, standard deviation
and percentages to achieve the objectives of the study. Descriptive statistics gives
numerical and graphic procedures to summarize a collection of data in a clear and
understandable way.

3.8 Validity and reliability of instruments

3.8.1 Reliability
To establish the reliability of the questionnaire, the researcher used method of expertise
judgment as best method of reliability after the construction of the questionnaire. The
researcher approached supervisor and other experts that have great knowledge about the
topic of this study to ensure the reliability and validity of the researcher instruments.

3.8.2 Validity
The sample technique and procedures or mechanisms Putin place made the study
possible to ensure the validity and reliability as they kicked off the biasness in the
research and the advice of experts which clearly made the research relevant, specific and
logical. In addition, a pilot test was conducted in order to test and prove on the reliability
of the questionnaire. To prove the validity of the data collection instruments scale was
used the validity relevant questions and the total number of questions.
24

3.9 Research limitations

During the study, here are some of the challenges that the researcher may encounter:
A. Lack of enough time and fund to make the research study.
B. Some respondents may refuse answering the questionnaire.
C. Security problems.
D. Facing language barriers since some of the respondents may not know English
language and these needs to be translated in to their mother language.
E. Difficult data in collection due to corona-virus disease.

3.10 Ethical consideration

Respect: The researcher will respect respondent’s privacy when entering their private
sphere and when asking questions.

Confidentiality: the researcher will guarantee maximum confidentiality for the


participants. Their information will only be used for the purpose of the study.

Freedom to participate: participants will be informed that they are free to participate.
They will also be informed that they have the right to withdrawal.

Informed consent: consent will be secured from the participants after fully informing
the nature, potential risks and benefits of the study.
25

CHAPTER FOUR

DATA PRESENTATION, ANALYSISAND DISCUSION OF


FINDINGS
4.0 Introduction

This chapter presents and illustrates the study analysis which is the output of the
questionnaire from the respondents to examine the research objectives and collected
from the respondents was analyzed using statistical package for social science (SPSS),
this chapter presents the results of the analyses in both tables and figures for containing
the type of responses, its frequencies and percentages and demonstrated by charts that
identifies how many persons agreed and disagreed.
26

4.1: Socio demographic characteristics of the respondents.

Table 4.1. 1 the gender of the respondents.

Indicator Frequency Percent Cumulative Percent


Male 29 65.9 65.9
Female 15 34.1 100.0
Total 44 100.0

According to the above table 4.1.1 and the figure 4.1.1 below (65.9%) sixth six percent
of the respondents were male and (34.1%) thirty four percent of the respondents were
female, this implies that the Majority of the respondents were male.

Figure 4.1. 1 Gender of the respondents

Source: primary data 2020


27

Table 4.1. 2 Age of the respondent

Indicator Frequency Percent Cumulative Percent


18-28 15 34.1 34.1
28-38 16 70.5
38-48 6 13.6 84.1
48 and above 7 15.9 100.0
Total 44 100.0

According to the above table 4.1. 2 and the figure 4.1. 2 below (34.1%) thirty four
percent of the respondents were 18-28 years old and (36.4%) thirty six percent the
respondents were 28-38 years old and (13.6%) fourteen percent of the respondents were
38-48 years old and (15.9%) sixteen percent the respondents were above 48 years old.
This implies that the Majority of the respondents were 28-38 years.

Figure 4.1. 2 Age of the respondent

age
40
36.4%
34.1%
35

30

25

20
15 16 15.9%
15 13.6%

10 7
6
5

0
1 2 3 4

Source: primary data 2020


28

Table 4.1. 3 shows the marital status of the respondents.

Indicator Frequency Percent Cumulative Percent


single 25 56.8 56.8

married 19 43.2 100.0


Total 44 100.0

According to the table 4.1.3 above and the figure 4.1.3 below (56.8%) fifty seven
percent of the respondents were single, and (43.2%) fourth three percent of the
respondents were married; this implies that the majority of the respondents were Single.

Figure 4.1. 3 shows the marital status of the respondents.

Marital status

31%

69%

Source: primary data 2020


29

Table 4.1. 4 shows the Education level of the respondents

Indicator Frequency Percent Cumulative Percent


Secondary 5 11.4 11.4
Diploma 6 13.6 25.0
Bachelor 19 43.2 68.2
Master 6 13.6 81.8
Others 8 18.2 100.0
Total 44 100.0

According to the above table 4.1.4 and the figure 4.1.4 below that the researchers
classified the levels of education of respondents into five parts the Secondary Certificate
(11.4%) eleven percent, and Diploma (13.6%) fourteen percent, and Bachelor (43.2%)
fourth three percent and the Master degree (13.6%) fourteen percent and the others
(18.2%) eighteen percent, this implies that the Majority respondents were the Bachelor
degree.

Figure 4.1. 4 show the Educational level of the respondents.

Educational level

70

60

50
43.2%
40

30

20 18.2%
11.4% 13.6% 13.6%
10 19
5 6 6 8
0
secondary diploma bachelor master others

Source: primary data 2020


30

Table 4.1. 5 shows level of Experience of the respondents.

Indicator Frequency Percent Cumulative Percent


Less than 1 year 5 11.4 11.4

1 -3 years 13 29.5 40.9

3 -5 years 16 36.4 77.3

5 years and above 10 22.7 100.0

Total 44 100.0
According to the above table 4.1.5 and the figure 4.1.5 below (11.4%) eleven percent of
the respondents were less than 1 year experienced, and (29.5%) thirty percent were 1
year to 3 years experienced and (36.4%) thirty six percent were 3 year to 5years
experienced and (22.7%) twenty three percent were Above 5 years, this implies that the
majority of respondents responded were the 3 years to 5 years experienced.

Figure 4.1. 5 shows level of Experience of the respondents.

36.4%

29.5%

22.7%

11.4%
16
13
10
5

Less than 1 year 1 year to 3 years 4 years to 6 years Above 6 years

Source: primary data 2020


31

Table 4.1. 6 shows Job Tittle of the respondents.

Indicator Frequency Percent Cumulative Percent


engineers 12 27.3 27.3
economics 9 20.5 47.7
businessmen 13 29.5 77.3
others 10 22.7 100.0
Total 44 100.0

According to the above table 4.1.6 and the figure 4.1.6 below (27.3%) twenty seven
percent of the respondents were engineers and (20.5%) twenty one percent were
economics and (29.5%) thirty percent were businessmen and (22.7%) twenty three
percent were Others, this implies that the majority of respondents responded were
businessmen.
Figure 4.1. 6 shows job tittle of the respondents.

29.5%
30.0 27.3%

22.7%
25.0
20.5%

20.0

15.0

10.0

5.0

0.0
engineers economics businessmen others

Source: primary data 2020


32

4.2: The effect of roads rebuilding in economic development.


Table 4.2. 1 The construction of some Mogadishu roads contributed to economic
development.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 20 45.5 45.5
Agree 16 36.4 81.8
Neutral 6 13.6 95.5
Strongly disagree 2 4.5 100.0
Total 44 100.0
According to the above table 4.2.1 and the figure 4.2.1 below (45.5%) fourth six percent
of the respondents responded strong agree and (36.4%) thirty six percent of the
respondents responded agree and the (13.6%) Fourteen percent of the respondents
responded neutral and (4.5%) five present of the respondents responded strongly
disagree this implies that the majority respondents responded strongly agree the
construction of some Mogadishu roads contributed to economic development.

Figure 4.2. 1 The construction of some Mogadishu roads contributed to economic


development.

70
60
50 45.5%
40 36.4%
30
20 13.6%
20 16
10 6 4.5%
2
0
Strongly Agree Agree Neutral Strongly disagree

Series1 Series2

Source: primary data 2020


33

Table 4.2. 2 Mogadishu roads should be reconstructed immediately, otherwise it


will hurt the local economy.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 22 50.0 50.0
Agree 9 20.5 70.5
Neutral 8 18.2 88.6
Disagree 4 9.1 97.7
Strongly disagree 1 2.3 100.0
Total 44 100.0
According to the above table 4.2.2 and the figure 4.2.2 below (50.0 %) fifty percent of
respondents responded strongly agree and (20.5%) twenty one percent of respondents
responded agree and (18.2%) eighteen percent of respondents responded neutral and
(9.1%) nine percent of respondents responded disagree and (2.3%) two percent of
respondents responded strongly disagree, This implies that majority respondents
responded strongly agree of the Mogadishu roads should be reconstructed immediately,
otherwise it will hurt the local economy.

Figure 4.2. 2 Mogadishu roads should be reconstructed immediately, otherwise it


will hurt the local economy.

80
70
60
50
50%
40
30
20 20.5% 18.2%
10 22 9.1%
9 8 4 2.3%
0 1
Strongly Agree Agree Neutral Disagree Strongly disagree

Source: primary data 2020


34

Table 4.2. 3 Mogadishu land transportation may be improved by repairing the


current broken roads.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 14 31.8 31.8

Agree 13 29.5 61.4

Neutral 12 27.3 88.6


Disagree 5 11.4 100.0

Total 44 100.0
According to the above table 4.2.3 and the figure 4.2.3 below (31.8%) thirty two percent
of respondents responded strongly agree and (29.5%) thirty percent of the respondents
responded agree and (27.3%) twenty seven percent of the respondents responded neutral
and (11.4%) eleven percent of respondents responded disagree, this implies that the
majority of the respondents responded strongly agree Mogadishu land transportation
may be improved by repairing the current broken roads.

Figure 4.2. 3 Mogadishu land transportation may be improved by repairing the


current broken roads.

31.8% 29.5% 27.3%


40

30 11.4%
14 13 12
20
5 Series2
10
Series1
0
Strongly Agree Agree Neutral Disagree

Series1 Series2

Source: primary data 2020


35

Table 4.2. 4 Another major problem in Mogadishu land transportation is


overloaded vehicles.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 11 25.0 25.0
Agree 20 45.5 70.5
Neutral 4 9.1 79.5
Disagree 6 13.6 93.2
Strongly disagree 3 6.8 100.0
Total 44 100.0
According to the above table 4.2.4 and the figure 4.2.4 below (25.0%) twenty five
percent of the respondents responded strongly agree and (45.5%) forty six percent of the
respondents responded agree and (9.1%) nine percent was of respondents responded
neutral and (13.6%) fourteen percent of the respondents responded disagree, and (6.8%)
seven percent of the responded strongly disagree; this implies that majority respondents
responded agree Another major problem in Mogadishu land transportation is overloaded
vehicles.

Figure 4.2. 4 Another major problem in Mogadishu land transportation is


overloaded vehicles.

50.0 45.5%
45.0
40.0
35.0
30.0 25.0%
25.0
20.0 13.6%
15.0 9.1%
6.8%
10.0
5.0
0.0
Strongly Agree Agree Neutral Disagree Strongly
disagree

Source: primary data 2020


36

Table 4.2. 5 If roads are constructed, the goods will quickly reach the markets.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 23 52.3 52.3

Agree 12 27.3 79.5


Neutral 5 11.4 90.9
Disagree 3 6.8 97.7
Strongly disagree 1 2.3 100.0

Total 44 100.0
According to the above table 4.2.5 and the figure 4.2.5 below (52.3%) fifty two percent
of the respondents responded strongly agree and (27.3%) twenty seven percent of the
respondents responded agree and (11.4%) eleven percent of the respondents responded
neutral and (6.8%) seven percent of the respondents responded disagree, and also (2.3%)
two percent of the respondents responded strongly disagree; this implies that the
majority respondents responded Strongly Agree If roads are constructed, the goods will
quickly reach the markets

Figure 4.2. 5 If roads are constructed, the goods will quickly reach the markets.

60 52.3%
50

40
27.3%
30 23

20 12 11.4%
5 6.8%
10 3 1 2.3&
0
Strongly Agree Agree Neutral Disagree Strongly
disagree

Source: primary data 2020


37

4.3: The effect of seaport rebuilding in economic development.

Table 4.3. 1 Mogadishu is a large city so that one seaport in not enough to develop
its economy.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 15 34.1 34.1
Agree 16 36.4 70.5
Neutral 5 11.4 81.8
Disagree 5 11.4 93.2
Strongly disagree 3 6.8 100.0
Total 44 100.0
According to the above table 4.3.1 and the figure 4.3.1 below (34.1%) thirty four percent
of the respondents responded strongly agree and (36.4%) thirty six percent of the
respondents responded agree and (11.4%) eleven percent of the respondents responded
neutral and (11.4%) eleven percent of the respondents responded disagree and (6.8%)
seven percent of the respondents responded strongly disagree.

Figure 4.3. 1 Mogadishu is a large city so that one seaport in not enough to develop
its economy.

40

15 16
20
5 5 3

0
Strongly Agree Agree Neutral Disagree Strongly
disagree

Source: primary data 2020


38

Table 4.3. 2 The current structure of Mogadishu seaport is not enough to imported
goods.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 14 31.8 31.8

Agree 17 38.6 70.5


Neutral 7 15.9 86.4
Disagree 6 13.6 100.0
Total 44 100.0
According to the above table 4.3.2 and the figure 4.3.2 below (31.8%) thirty two percent
of respondents responded strongly agree and (38.6%) thirty nine percent of respondents
responded agree and (15.9%) sixteen percent of respondents responded neutral and
(13.6%) Fourteen percent of respondents responded disagree, this implies that the
majority respondents responded agree of the current structure of Mogadishu seaport is
not enough to imported goods.
Figure 4.3. 2 The current structure of Mogadishu seaport is not enough to imported
goods.
45

40 38.6%

35 31.8%
30

25

20 17 15.9%
14 13.6%
15

10 7 6
5

0
Strongly Agree Agree Neutral Disagree
Source: primary data 2020
39

Table 4.3. 3 Mogadishu seaport needs immediate reconstruction.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 12 27.3 27.3
Agree 21 47.7 75.0
Neutral 8 18.2 93.2
Disagree 1 2.3 95.5
Strongly disagree 2 4.5 100.0
Total 44 100.0
According to the above table 4.3.3 and the figure 4.3.3 below (27.3%) twenty seven
percent of respondents responded strongly agree and (47.7%) fourth eight percent of
respondents responded agree and (18.2%) eighteen percent of respondents responded
neutral and (2.3%) two percent of respondents responded disagree and (4.5%) five
percent of respondents responded strongly disagree, this implies that the majority
respondents responded agree of Mogadishu seaport needs immediate reconstruction.

Figure 4.3. 3 Mogadishu seaport needs immediate reconstruction.

47.7%
50
45
40
35
27.3%
30
25 21
18.2%
20
15 12
8
10 4.5%
1 2.3% 2
5
0
Strongly Agree Agree Neutral Disagree Strongly disagree

Source: primary data 2020


40

Table 4.3. 4 Ships and large cargo vessels don’t have enough space when entering
to Mogadishu seaport.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 10 22.7 22.7
Agree 25 56.8 79.5
Neutral 1 2.3 81.8
Disagree 5 11.4 93.2
Strongly disagree 3 6.8 100.0
Total 44 100.0
According to the above table 4.3.4 and the figure 4.3.4 below (22.7%) twenty three
percent of respondents responded strongly agree and (56.8%) around fifty seven percent
of respondents responded agree and (2.3%) two percent of respondents responded
neutral and (11.4%) eleven percent of respondents responded disagree and (6.8%) seven
percent of respondents responded strongly disagree, this implies that the majority
respondents responded agree of the Ships and large cargo vessels don’t have enough
space when entering to Mogadishu seaport.

Figure 4.3. 4 Ships and large cargo vessels don’t have enough space when entering
to Mogadishu seaport.

56.8%
60

50

40

30 22.7% 25

20 11.4%
10
5 6.8%
10 1 2.3% 3

0
Strongly Agree Agree Neutral Disagree Strongly
disagree

Source: primary data 2020


41

4.4 The effect of airport rebuilding in economic development

Table 4.4. 1 Airport are the backbone of the development of economic.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 20 45.5 45.5
Agree 14 31.8 77.3
Neutral 8 18.2 95.5
Disagree 2 4.5 100.0
Total 44 100.0
According to the above table 4.4.1 and the figure 4.4.1 below (45.5%) fourth six percent
of respondents responded strongly agree and (31.8%) thirty two percent of respondents
responded agree and (18.2%) eighteen percent of respondents responded neutral and
(4.5%) five percent of respondents responded disagree, this implies that the majority
respondents responded strongly agree. Airport are the backbone of the development of
economic.
Figure 4.4. 1 Airport are the backbone of the development of economic.
45.5%

31.8%

18.2%
20

14

4.5%
2

STRONGLY AGREE AGREE NEUTRAL DISAGREE

Source: primary data 2020


42

Table 4.4. 2 Airport development has also been linked with economic development.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 12 27.3 27.3
Agree 25 56.8 84.1
Neutral 2 4.5 88.6
Strongly disagree 5 11.4 100.0
Total 44 100.0

According to the above table 4.4.2 and the figure 4.4.2 below (27.3%) twenty seven
percent of respondents responded strongly agree and (56.8%) fifty seven percent was
agree and (4.5%) five percent of respondent’s responded neutral and (11.4%) eleven
percent of respondents responded Strong disagree, this implies that the majority
respondents responded agree of Airport development has also been linked with
economic development.
Figure 4.4. 2 Airport development has also been linked with economic
development.

56.8%
60

50

40

27.3%
30 25

20
12 11.4%

10 4.5% 5
2

0
Strongly Agree Agree Neutral Strongly disagree

Source: primary data 2020


43

Table 4.4. 3 Airport transport infrastructure improvement will develop local


economy.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 18 40.9 40.9
Agree 20 45.5 86.4
Neutral 4 9.1 95.5
Disagree 2 4.5 100.0
Total 44 100.0
According to the above table 4.4.3 and the figure 4.4.3 below (40.9%) forty one percent
of respondents responded strongly agree and (45.5%) forty six percent agree and (9.1%)
nine percent of respondents responded neutral and (4.5%) five percent of respondents
responded disagree, this implies that the majority respondents responded agree Airport
transport infrastructure improvement will develop local economy.
Figure 4.4. 3 Airport transport infrastructure improvement will develop local
economy.

50
45.5%
45 40.9%
40
35
30
25
20
20 18

15
9.1%
10
4 4.5%
5 2
0
Strongly Agree Agree Neutral Disagree

Source: primary data 2020


44

Table 4.4. 4 Heavy presence of troops within the airport damaged the economic
development.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 20 45.5 45.5
Agree 14 31.8 77.3
Neutral 6 13.6 90.9
Disagree 3 6.8 97.7

Strongly disagree 1 2.3 100.0


Total 44 100.0
According to the above table 4.4.4 the figure 4.4.4 below (45.5%) fourth six percent of
respondents responded strongly agree and (31.8%) thirty two percent of respondents
responded agree and (13.6%) fourteen percent neutral and (6.8%) seven percent of
respondents responded disagree and (2.3%) two percent of respondents responded
strongly disagree, this implies that the majority respondents responded strongly agree of
the Heavy presence of troops within the airport damaged the economic development.

Figure 4.4. 4 Heavy presence of troops within the airport damaged the economic
development.
70

60

50
45.5%
40

30 31.8%

20
13.6%
10 20
14 6.8%
6 3 2.3%
0 1
Strongly Agree Agree Neutral Disagree Strongly disagree

Source: primary data 2020


45

Table 4.4. 5 The limited space of the airport is a constraint to the economic growth
of the city.

Indicator Frequency Percent Cumulative Percent


Strongly Agree 14 31.8 31.8
Agree 22 50.0 81.8
Neutral 6 13.6 95.5
Disagree 2 4.5 100.0
Total 44 100.0
According to the above table 4.4.5 and the figure 4.4.5 below (31.8%) thirty two
percent of respondents responded strongly agree and (50.0%) fifty percent of
respondents responded agree and (13.6%) fourteen percent of respondents responded
neutral and (4.5%) five percent of respondents responded disagree, this implies that
the majority respondents responded agree of The limited space of the airport is a
constraint to the economic growth of the city.

Figure 4.4. 5 The limited space of the airport is a constraint to the economic growth
of the city.

50.0%
50
45
40
31.8%
35
30
22
25
20 14 13.6%
15
6 4.5%
10
2
5
0
1 2

Source: primary data 2020


46

4.5 Discussion of the findings

This portion discusses the results of analysis in above section. It highlights objectives of
the study and the findings of each objective from respondents and interpreting it to the
researcher's view and to the context of previous researches.
4.5.1: Discussion of Socio demographic characteristics of the respondents.
The findings of the study shown above in tabular and graphical forms, indicates that the
age (34.1%) thirty four percent of the respondents are between 18-28 years old while
(36.4%) thirty six percent the respondents were 28-38 years old and (13.6%) fourteen
percent of the respondents between 38-48 years old while (15.9%) sixteen percent the
respondents were above 48 years old.

The result also shows that the Gender (65.9%) sixth six percent of the respondents were
male while (34.1%) thirty four percent of the respondents were female.

These results show that the most participants who contributed to get the primary data of
this research were under aged people almost less than 39 years. The demographical
information also shows that almost 65.9% of the respondents were male.

4.5.2: The effect of roads rebuilding in economic development.


The first objective of the study was to effect of roads rebuilding in economic
development. The results found from the analysis of the respondent’s answers indicate
that (45.5%) fourth six percent of the respondents responded strongly agree while
(36.4%) thirty six percent of the respondents responded agree and the (13.6%) Fourteen
percent of the respondents responded neutral and (4.5%) five present of the respondents
responded strongly disagree, so this highlights that more than 45% of the respondents
accepted that when the construction of some Mogadishu roads contributed to economic
development.
47

The researcher’s findings also portrait that (31.8%) thirty two percent of respondents
responded strongly agree while (29.5%) thirty percent of the respondents responded
agree and (27.3%) twenty seven percent of the respondents responded neutral while
(11.4%) eleven percent of respondents responded disagree, this implies that the majority
of the respondents responded strongly agree Mogadishu land transportation may be
improved by repairing the current broken roads.

4.5.3: the effect of seaport rebuilding in economic development.


The second objective of the research was to examine the effect of seaport rebuilding in
economic development. The results found from the analysis of the respondent’s answers
indicate that (34.1%) thirty four percent of the respondents responded strongly agree
while (36.4%) thirty six percent of the respondents responded agree and (11.4%) eleven
percent of the respondents responded neutral while (11.4%) eleven percent of the
respondents responded disagree and (6.8%) seven percent of the respondents responded
Strongly disagree, this implies that the majority respondents responded agree Mogadishu
is a large city so that one seaport in not enough to develop its economy.

The researcher’s findings also portrait that (31.8%) thirty two percent of respondents
responded strongly agree while (38.6%) thirty nine percent of respondents responded
agree and (15.9%) sixteen percent of respondents responded neutral while (13.6%)
Fourteen percent of respondents responded disagree, this implies that the majority
respondents responded agree of the current structure of Mogadishu seaport is not enough
to imported goods.
48

4.5.4: The effect of airport rebuilding in economic development.


The third objective of the study was to the effect of airport rebuilding in economic
development. The results found from the analysis of the respondents ‘responded, as
shown above, indicate that (45.5%) fourth six percent of respondents responded strongly
agree and (31.8%) thirty two percent of respondents responded agree and (18.2%)
eighteen percent of respondents responded neutral and (4.5%) five percent of
respondents responded disagree, this implies that the majority respondents responded
strongly agree. Airport are the backbone of the development of economic. Also research
findings that (27.3%) twenty seven percent of respondents responded strongly agree and
(56.8%) fifty seven percent was agree and (4.5%) five percent of respondent’s
responded neutral and (11.4%) eleven percent of respondents responded Strong disagree,
this implies that the majority respondents responded agree of Airport development has
also been linked with economic development.
The researcher’s findings also portrait that (40.9%) forty one percent of respondents
responded strongly agree and (45.5%) forty six percent agree and (9.1%) nine percent of
respondents responded neutral and (4.5%) five percent of respondents responded
disagree, this implies that the majority respondents responded agree Airport transport
infrastructure improvement will develop local economy.
49

CHAPTER FIVE

CONCLUSION AND RECOMMENDATIONS


5.0 Introductions

This chapter summarizes the results of the study and methods followed to achieve it. The
conclusion will be draw form the findings of the study. Lastly, the researcher will bring
recommendation and further researches are suggested in this study.

5.1 Conclusion

This study investigates the effect of infrastructure rebuilding in economic development:


The effect of roads rebuilding in economic development, The effect of seaport
rebuilding in economic development, The effect of airport rebuilding in economic
development, with the sample size of 44, and the questionnaire was self-administered
and also the target population was 50 persons that involve economics, engineers,
businessmen and Civil society and the data was analyzed and interoperated by SPSS
V.20 and MS Excel 2016. To achieve its prior objectives, the study was collected the
communities living in Mogadishu to collect the primary data needed to ensure the effect
of infrastructure rebuilding in economic development, the study used questionnaire
instrument for simplification and generalization. Based on the research findings the
effect of infrastructure rebuilding in economic development.
First objectives was determined the significance of roads rebuilding in economic
development, Roads are an integral part of the transport system. A country’s road
network should be efficient in order to maximize economic and social benefits. They
play a significant role in achieving national development and contributing to the overall
performance and social functioning of the community. It is acknowledged that roads
enhance mobility, taking people out of isolation and therefore poverty.

The result founded from the analysis of the research data indicates that the roads
rebuilding has potential effect on economics development means that construction of
50

some Mogadishu roads contributes to economic development and also If roads are
constructed, the goods will quickly reach the markets.

The outcome founded from the analysis of research data show that the seaport rebuilding
has significant impact on economic development meanwhile seaport vital role economic
development as well as Mogadishu seaport needs immediate reconstruction to growth local
economy.

Last objective indicates that the effect of airport rebuilding has vital impact on economic
development meanwhile Airport are the backbone of the development of economic and
also Airport transport infrastructure improvement will develop local economy.

5.2 Recommendations

Researchers would like to recommended the following point which they hope will be
essential the effect of infrastructure rebuilding in economic development.
 The government of Somalia and businessmen should be cooperate and take
responsibility to rebuilding the infrastructure.
 The municipality and people living in Mogadishu should be take part in building
and cleaning the infrastructure.
 The government should develop a plan to improve the transportation in
Mogadishu quickly.
5.2.1 Recommendations for Further Research

 Communication systems, such as telephone networks and postal services


 Governance systems, such as court systems.
 Basic public services and facilities, such as schools, sewers, and water systems.
51

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54

APPENDICES
APPENDIX (A) Questionnaire
Dear respondent:

We are Yahye Hashi Abdullah, Falis Ali Addow and Mohamed Khalif Abukar currently
doing graduation thesis on bachelor degree at Mogadishu University in Faculty of
Economic and Management Science specially Department of Business Administration
we required to conduct research about: “The effect of infrastructure rebuilding in
economic development in Mogadishu-Somalia”.

This questionnaire is designed for the collection of primary data. It focuses on the topic
of “the effect of infrastructure rebuilding in economic development in Mogadishu –
Somalia.” You are assumed as a potential contributor who can provide a useful and
reliable data that will help the researcher to conduct this research project successfully.
This questionnaire is absolutely for academic purpose.

Please contribute kindly toward this research by responding honestly for the attached
questionnaire. The researcher would appreciate your opinion and expect to receive the
questionnaire back as soon as possible.

Please mark the appropriate box ahead to fill the questionnaire successfully:

Section A: Socio demographic characteristics of the respondents

1. Gender

a. Male b. Female

2. Age

a.18 – 28 years b. 28 – 38 years c. 38 – 48 years d.48 and above

3. Marital status
55

a. Single b. Married

4. Educational level

a. Secondary b. Bachelor c. Master d. Other

5. Level of experience

a. Less than 1 year.


b. 1-3 years.
c. 3-5 years.
d. 5 years and above.

6. Job title

A. Engineers
B. Economists
C. Businessmen
D. others

SECTION B:

Please Read the following statements and check the box that best reflects your opinion
of the statement.

Where, 1= Strongly Agree(SA), 2= Agree(A), 3=Neutral(N), 4= Strongly Disagree (SD), 5= Disagree(D)


No The effect of roads rebuilding in economic development A SA N D SD

Statement 1 2 3 4 5

1 The construction of some Mogadishu roads contributed to economic


development.
2 Mogadishu roads should be reconstructed immediately, otherwise it will
hurt the local economy
3 Mogadishu land transportation may be improved by repairing the current
broken roads
56

4 Another major problem in Mogadishu land transportation is overloaded


vehicles
5 If roads are constructed, the goods will quickly reach the markets

No The effect of seaport rebuilding in economic development A SA N D SD

Statement 1 2 3 4 5

1 Mogadishu is a large city so that one seaport in not enough to develop its
economy

2 The current structure of Mogadishu seaport is not enough to imported


goods
3 Mogadishu seaport needs immediate reconstruction

4 Ships and large cargo vessels don’t have enough space when entering to
Mogadishu seaport

N The effect of airport rebuilding in economic development A SA N D SD


o
Statements 1 2 3 4 5

1 Airport are the backbone of the development of economic.

2 Airport development has also been linked with economic development

3 Airport transport infrastructure improvement will develop local economy

4 Heavy presence of troops within the airport damaged the economic


development

5 The limited space of the airport is a constraint to the economic growth of


the city

Thanks For Your participation


57

APPENDIX (B): SOMALIA MAP

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