page_title: Puntland
section_title: Economy
hierarchical_section_title: Puntland / Economy
caption_attribution_description: English: An Amal Bank branch in Galkayo, Puntland, Somalia.
context_page_description: Puntland, officially the Puntland State of Somalia, is a Federal Member State in northeastern Somalia. Centred on the town of Garoowe in the Nugal province, its leaders declared the territory an autonomous state within Somalia in 1998.
  Puntland is bordered by Somaliland to its west, the Gulf of Aden in the north, the Guardafui Channel in the northeast, the Somali Sea in the southeast, the central Galmudug region in the south, and Ethiopia in the southwest. There are several major geographical apexes in Puntland, including the Cape Guardafui which forms the tip of the Horn of Africa, Ras Hafun the easternmost place on the entire African continent, and the beginning of the Karkaar mountain range. It also has the northernmost major city in Somalia, Bosaso, located at a line of latitude higher than 11° north.
  The name "Puntland" is derived from the Land of Punt mentioned in ancient Egyptian sources, although the exact location of the fabled territory is still a mystery. Many studies suggest that the Land of Punt was located in present-day Somalia, whereas others propose that it was situated elsewhere.
context_section_description: Puntland has 1600 km of coastline, which is abundant with fish and other natural marine resources. Additional economic products and activities of the region include livestock, frankincense, myrrh, gum arabic, manufacturing and agriculture.
  Puntland has the lowest rate of poverty in Somalia, with 27%, compared to 50% in Somaliland and 57% in Mogadishu. Experts believe this is because of higher consumption and higher labour force participation. Households in Puntland consume a higher quantity per capita per item and more items per household. The lower rate of poverty does not appear to be driven by household size, as the average in Puntland is 5.2, compared to 5.7 in Somaliland and 4.5 in Mogadishu. Puntland is doing better in various important indicators of well-being. For instance, the literacy rate in Puntland is 64% compared to the national average of 55%. Additionally, households in Puntland also outperform the average in other educational outcomes such as enrolment and educational attainment. 70% of households in Puntland have access to improved water sources compared to the national average of 58%. Therefore, Puntland's higher performance on non-monetary indicators of well-being are inline with its lower rate of poverty.
  In December 2011, a new commercial market opened in Bosaso's northern Dayaha ("Star") neighborhood, near the seaport. Approximately half a kilometer in size, it was designed to ensure easy vehicle access. The market is the result of careful planning between Puntland government officials and civil society representatives.
  Bosaso is also home to Golis Telecom Somalia, the largest telecommunications operator in northeastern Somalia. Founded in 2002 with the objective of supplying the country with GSM mobile services, fixed line and internet services, it has an extensive network that covers all of the nation's major cities and more than 40 districts in both Puntland and Somaliland. Additionally, Netco has its headquarters in the city. Other telecommunication firms serving the region include Telcom and NationLink.
  In April 2013, the Puntland Ministry of Fisheries and Marine Resources officially inaugurated a new fish market in Garowe. Constructed in conjunction with the UK authorities and the UNDP, it is part of a larger regional development plan which will see two other similar marketplaces launched within the year in Galkayo and Qardho.
  In August 2014, in conjunction with the government of Djibouti and an international construction firm headquartered in China, the Puntland Transport and Seaports Ministry launched a project to establish new seaports in the regional state. The initiative is part of a broader campaign by the Puntland administration to focus on tapping into the region's commercial potential through various development projects.
caption: Amal Bank branch in Galkayo, Puntland
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