The uneasy awareness that they are hostages to a single export and a single market has prompted calls for diversification and reform - a necessity underlined by the inexorable degradation of the natural environment. Range management, the provision of services to enhance the export value of livestock, and more effective marketing techniques are all possibilities, but meeting the costs of such activities and winning the trust and acceptance of the pastoralist community will not be easy. One way to relieve some of the pressure on Somaliland's pastures is to pursue the diversification of the economy through the exploitation of other natural resources, like fisheries, frankincense, salt and minerals. But these are unlikely to yield much revenue unless they are linked to greater domestic processing capacity, and aggressive international marketing strategies. Within the livestock sector, a shift towards chilled meat exports, processed hides, and even milk products might open doors and allow economic growth without irretrievably destroying Somaliland's rangelands.
Alternatives undoubtedly exist.
Coal mining, oil exploration, cement production, tourism, an economic free zone, financial services, and internet commerce are all possibilities under consideration by various Somaliland entrepreneurs, at home and in the diaspora. Such ideas many never get off the ground, however, unless a conducive business environment can be established in which local enterprises have access to venture capital or credit - either from financial institutions, or foreign direct investment. The development of a positive regulatory environment for business is one way in which Somaliland can boost investor confidence and attract foreign capital. At present, government policies and regulations are underdeveloped and their application uncertain. Until potential investors, including financial institutions, see a more reassuring business environment, they are unlikely to take a greater interest.