Are Somali Businesses Missing Out on the Power of Data?

By Farah Jama - Program Manager | Data Analyst | Expert in Humanitarian Solutions, Data-Driven Insights, and Resilient Development

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In Somalia’s rapidly evolving business landscape, companies operate across diverse sectors, including construction, retail, wholesale, manufacturing, logistics, and services. Despite this diversity, many businesses still rely on traditional record-keeping methods and intuition-based decision-making. While experience and market knowledge remain invaluable, the ability to analyze and interpret data effectively has become essential for companies aiming to improve efficiency, maximize profits, and stay ahead of the competition. The question remains—are business owners in Somalia aware of the power of data visualization? Do they have dedicated staff responsible for analyzing sales trends, customer behavior, and operational performance?

To explore this, I used Power BI to visualize sales data from a publicly available dataset. Although the dataset does not reflect actual transactions, it serves as an example of how businesses can structure and analyze their own data to uncover meaningful insights. The generated report simulates how businesses in Somalia—particularly those dealing in construction materials—can leverage data to enhance their decision-making. The visualization provides a breakdown of sales performance, trends over time, and geographical distribution, all of which are essential for businesses looking to optimize their strategies.

Examining sales patterns over time, the dashboard highlights revenue peaks and fluctuations, showing how businesses can identify seasonal trends. For instance, in the simulated dataset, sales peaked during certain months while showing a decline in others. Such trends are common in real-world businesses, where demand may rise due to construction booms, government projects, or seasonal market fluctuations. By analyzing these patterns, companies can forecast demand, manage inventory efficiently, and launch targeted marketing campaigns to boost sales during slower months.

Picture 1: Sales Trend Over Time, Monthly Sales Performance, and Sales Breakdown by Product Type

The dashboard also highlights product performance, demonstrating which items generate the most revenue. In the example, reinforcement steel bars, concrete mixers, and cement appeared as high-revenue items, while other products contributed moderately. In a real business scenario, such analysis would help companies identify their strongest product lines, allocate resources effectively, and adjust pricing or promotions to maximize sales. Without data visualization tools, business owners often rely on estimations and instinct, which can lead to misallocation of inventory and lost revenue opportunities.

Beyond product analysis, the report illustrates customer contributions to overall sales. It categorizes different buyers and shows how much each one has purchased over time. In a Somali business environment, customers range from individual buyers to wholesale distributors, construction firms, and government contractors. Understanding customer purchasing behavior allows companies to prioritize key clients, offer personalized incentives, and build long-term business relationships. In the absence of structured sales data, businesses may struggle to identify their most valuable customers, leading to missed opportunities for repeat business and customer retention.

Figure 2: Customer Contribution to Revenue, Customer Sales by Location, and Customer Purchase Trends

Another critical aspect of the visualization is regional sales distribution. Businesses in Somalia operate in major economic hubs such as Mogadishu, Hargeisa, Bosaso, Kismayo, and Garowe, each with its own market dynamics. Some regions may have a higher demand for specific products due to ongoing construction projects, population growth, or investment inflows. By analyzing sales distribution across different locations, businesses can identify high-demand areas, optimize supply chain logistics, and expand operations strategically. Without such insights, companies may overlook potential markets or invest resources in underperforming locations.

The broader question remains—how many businesses in Somalia actively use data analysis to inform their decisions? While some larger companies may have staff dedicated to finance and operations, the use of tools like Power BI for real-time sales tracking, trend analysis, and performance evaluation is still limited. Many business owners rely on manual records, spreadsheets, or verbal updates from staff, which can be inefficient and prone to errors. Investing in data analytics capabilities can help companies not only improve operational efficiency but also strengthen financial planning, predict customer demand, and enhance overall competitiveness in the market.

This exploration of sales data, though based on simulated figures, demonstrates the potential of data visualization for Somali businesses. By embracing tools like Power BI, companies can transform raw data into actionable insights, allowing them to make informed decisions that drive growth and sustainability. As businesses in Somalia continue to expand and modernize, those that integrate data analytics into their operations will be better equipped to navigate market challenges, respond to customer needs, and seize new opportunities. The future of business belongs to those who understand and leverage their data effectively.

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