Faculty of Commerce and Modern Management

Department of Accounting.

EFFECT OF KHAT ON ECONOMIC GROWTH IN PUNTLAND,

SOMALIA:

A CASE STUDY GAROWE CITY

A R E S E A R C H D I S S E R T A T I O N S U B MI T T E D T O T H E
F A C U L T Y O F C O M ME R C E A N D MO D E R N MA N A G E ME N T
I N P A R T I A L FU L F I L L ME N T O F T H E R E Q U IR E ME N T F O R
T H E A W A R D O F B A C H E L O R D E G R E E I N A CC O U N T I N G A T
U N I V E R S I T Y O F B O S A S O IN GAROWE CAMPUS

By: Abdullahi Mohamed Ali

ID: BAC/08954/2019

Advisor: Mr. Abdilfatah Mohamed Warsame

April,2022

I
 DECLARATION A

Abdullahi declare that this is my own original work and has not been submitted by
anybody else for the award of a degree to any other institution.

Abdullahi Mohamed Ali

Sign: …………………………………………
Date: …………………………………………

II
 DECLARATION B

The research project has been submitted for examination with my approval
Supervisor

Mr. Abdifatah Mohamed Warsame

Sign: …………………………………………
Date: …………………………………………

III
 DEDICATION

This project paper is in memory of my mother Kamil Jama my father Mohamed Ali Hussein and
also my lovely family as a whole with their support for my entire life. Without their support
nothing can be achieved.

IV
 ACKNOWLEDGEMENT

First, I would like to express my grateful thanks to ALLAH, who give me this golden
opportunity, physically, and mentally fitness and chance to write and complete this voluble study
within tough conditions.

Second, I am appreciating my beloved parents to appreciate even tiny things of my parent’s life.

Third, I express my great appreciation to my supervisor Mr. Abdelfattah Mohamed Warsame for his
tireless effort in instructing and guiding me through the writing of this research work.

Four, I would like to thank my parents who supported me financially and encouraged me to
finish my degree and all family and friends who have been there for me at the time I needed
support from them. Finally, I would like to thank to all my family, relatives and every person
who was directly or indirectly involved in completing my research thesis. I thank you all.

I like to say thankful and grateful to my university to my UOB lecturers and administration, who
is pillar of my knowledge and build my future also best thankful to all UOB, staff those who
were contributed. I also would like to express my wholehearted thanks to my classmates BAC
2022 and all UOB family for their generous support they provided me throughout my entire
university life.

V
 ABSTRACT

The study entitled “Effects of Khat on Economic Growth in Garowe-Puntland-Somalia selected”.

This report was limited to selected regions in Somalia mainly finding out the causes of Effects of
the Consuming Khat and risks involved in finally possible remedies to consuming of khat. The
study would benefit the Somali economy policy makers and community of Somalia through the
insight from the study.

The study used all the theories on effects chewing of khat in her related literature. The study
adopted a case study design of selected regions in Somalia, the research used primary and
secondary sources of literature in their view; these were books, reports, and first-hand
information from experts who were relating to the consuming khat and effect economic in
Somalia. The researcher selected a sample of, 30 respondents to whom he used purposive
sampling in the selecting of religious maqins of selling khat and government officials. The
researcher used content validity index to test the validity and reliability of the research
instruments.

The research outcomes show there are many men than women in Somalia in top leadership
positions; many wholesalers of khat in Somalia every year in search for better jobs and anther
opportunities. The researcher also noted economic instability and inadequate enforcement of
international on human trafficking increases the vulnerability of selling khat in Somalia legally
and illegally. Finally, the researcher believes these problems can find a solution through
employment creation in Somalia, access to better health and education and finally political
stability and good governance would play a big role in solving the problem.

VI
 LIST OF CONTENTS
DECLARATION A II
DECLARATION B III
DEDICATION IV
ACKNOWLEDGEMENT V
Abstract VI
INTRODUCTION 1
1.1: background of the study ...............................................................................1
1.2: problem statement:...........................................................................................3
1.3: purpose of the study: ........................................................................................4
1.4.: the general objectives of the study: ................................................................4
1.4.1: specific objectives of the study: ..................................................................................... 4
1.5: research questions: ........................................................................................4
1.6: Hypothesis of the Study ...................................................................................5
1.7: scope of the study ...........................................................................................5
1.8: significance of the study ..................................................................................5
1.9: operational definitions...................................................................................5
CHAPTER TWO 7
LITERATURE REVIEW 7
2.1.0: Concepts: ......................................................................................................7
2.1.1: Definition of IS KHAT? ...............................................................................7
2.1.2: Concept of Khat shortage in Somalia ...........................................................7
2.1.3: The concept on Impact of Khat on economy of Somalia ........................7
2.1.4: The economy of Khat ...................................................................................8
2.1.5: Health risks of Khat consumption ..............................................................10
2.2: Related studies: ..............................................................................................11
2.3: Research gab: .................................................................................................12
CHAPTER THREE 13
RESEARCH METHODOLOGY 13
3.1: Research design: ..........................................................................................13

VII
 3.2: Research population:...................................................................................13
3.3: Sample size: ..................................................................................................13
3.4: Sampling procedure: ...................................................................................14
3.5: Research instrument: ..................................................................................14
3.6: Validity and reliability of the study: ..........................................................14
3.7: Data gathering procedures: ........................................................................15
3.8: Data analysis: ...............................................................................................15
3.9: Ethical consideration: .................................................................................15
3.9.1: Permission to conduct the research: ......................................................................... 15
3.9.2: Informed consent: ...................................................................................................... 15
3.10: Limitation of the study ................................................................................................ 15
CHAPTER FOUR 17
DATA ANALYSIS AND INTERPRETATION ..................................................17
4.1INTRODUCTION ............................................................................................17
4.2 Demographic Characteristics of the Respondents .........................................17
CHAPTER FIVE 27
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS .........................27
INTRODUCTION.............................................. Error! Bookmark not defined.
FINDINGS .......................................................... Error! Bookmark not defined.
CONCLUSIONS .................................................................................................27
RECOMMENDATIONS....................................................................................28
REFERENCE 30
APPENDIX: QUESTIONNAIRE 32

VIII
 LIST OF TABLE
Table 4.1 Gender of the Respondents 17
Table 4.2: age of the respondents: 18
Table 4.3 Marital Status of the Respondents 19
4.4: How many years are you ate the KHAT? 19
4.5: Occupation of the responders: 20
Table 4.6: khat users they spend money carelessly on Khat consumption than
foods and other basic needs 21
Table4.7: khat has led to increased national income of the country 22
Table 4.8: There are families and relatives of khat benefit from the khat
revenues 23
Table 4.9: The benefit of negative effects of khat is more than its positive
effect. 24
Table 4.10: Does the khat effect the health of the consumers? 24
Table 4.11: Is job creation is a possible solution to the khat problem? 25

IX
 CHAPTER ONE

INTRODUCTION

1.1: background of the study

Khat is most widely grown plants in the world, it appears to have originated in Kenya, Uganda,
Ethiopia, Yemen and Tanzania. Khat plant is known us by different names such as Khat in
Yemen, (Jada) in Somali environment and chat in Ethiopia, it has been grown for use as a
stimulant for centuries in the horn of Africa, the Khat use has traditionally been confined to the
regions where it is grown but in recent years, improved roads and transportation have increased
the global or region distribution of this perishable three. My approximately 70% for Khat users
are Puntland government including soldiers and government executives and most of the revenue
generated by Puntland government are spent for buying Khat, pirates are also Khat consumers',
chewing of Khat is mostly male habit in the country that is used although there are few counties
which use the Khat as traditional or culture both male and female chew the Khat for example
in Yemen.

Our environment, Khat is increasing day after day for example there was a time that the people
who used Khat was very small and the place where it sells was rare. But today Khat have a huge
number of growing if we try to estimate we cannot estimate the people who use Khat and the
positions where it sells is many.so Somali’s people make their own names depends on the time
that the Khat is chewed for example early in the morning the Khat chewed is called(barje) after
the lunch there is another Khat is chewed called (jabane), early in the night known as (bargo) and
late in the night known as (biyos raacis.).

The use of Khat in 1960 and before is not same as to day because at that time the people who
chew the Khat were small, majority were the elder people, also the time and it was bad habit if
seen someone who chew Khat after 6pm but today everything is changed, today the people chew
the Khat long time from morning to mid night so this is new habit to the society. They used to

1
chew the Khat was little between 2pm-5pm two there is contradiction between the people some
of them claims that the Khat has energy to improve the work performance, among those people
the truck drivers if you ask them what cause to chew the Khat some answers you we want to
keep our selves awake and you can see a lot of drivers across long distances who are chewing the
Khat not most but some of them, or maximum three hours.

According to (Ezekiel gebissa 2010) with regard to consumption, it is important to note that Khat
chewing has a long history in the horn of Africa. Reports of Khat use in the hinterlands of the
horn of Africa go back at least eight centuries. The leaves were chewed by the people in the
medieval Islamic sultanates of the southern region of today's Ethiopia as early as the fourteenth
century. From there, the chew culture spread to the horn region along the historic long-distance
trading routes that connected Muslim trading states.

In the last two decades, Khat, a psychoactive shrub chewed for its stimulating effects, has
followed immigrants from the traditional-use regions of the horn of Africa and the Middle East
to western counties. Khat can now be regarded as a psychoactive plant taken out of its cultural
environment, used in new settings, perceived as an object of abuse and targeted for elimination.
While Khat has yet to cross the line of becoming a new drug of abuse, it has come to a
crossroads of either following the course of the mild stimulants such as coffee, tea, and sugar that
have now been successfully commercialized and globalized or of the highly refined products
such as cocaine or heroin that are universally considered harmful and are under international
control. The fact of kit’s appearance in the west has nevertheless created moral and political
panic in some circles and growing anxiety in the source countries because of the fear that the
countries that have hitherto kept Khat legal. (Journal of ethno pharmacology).

According to (Author: A. S. ELMI, Y. H. AHMED, M. S. SAMATAR) the chewing of the

leaves of the plant called khat (Catha edulis Fork) is a common habit in some countries of East
Africa and the Arabian Peninsula. Khat chewing has a stimulating effect on the central nervous
system, which is the reason for the widespread abuse of this plant. From the mid-1960s to the
early 1980s, khat chewing spread from the limited area of the northwestern part of Somalia to the
2
whole country, assuming epidemic proportions. Khat chewing was recognized as a real national
problem with adverse consequences for the health and socio-economic development of the
country. A law prohibiting the use, importation, cultivation and trade of khat was enacted in
1983, and it has been strongly enforced by a comprehensive national programmer that has
mobilized the whole country to achieve its objectives. Committees to co-ordinate action on khat
control were established at the national, regional and local levels. An information and education
campaign using the mass media has been carried out to support the national programmer. After
the successes achieved in the enforcement of the prohibition law, the national authorities,
hampered by a shortage of financial resources, have had major difficulties in providing farmers
with adequate compensation for damage caused to them by the destruction of khat plantations.
Difficulties were also experienced in coping with the unemployment of those who were involved
in the khat business and in establishing the recreational facilities needed to provide healthy social
alternatives to khat-chewing sessions. These difficulties have only been partly solved. Although
small amounts of khat are still smuggled into the country and clandestinely consumed, the level
of khat chewing and its associated problems have been substantially reduced. Nevertheless, in
order to ensure the complete success of the prohibition law, international co-operation appears to
be essential.

1.2: Problem statement:

Khat is slow growing green shrub that is abused for its stimulant-like effect. Khat has two active
ingredients, cathine and cathinone. Also have effects on the human mentally and physically Khat
causes an immediate increase in blood pressure and. heart rate. Khat can also cause a brown
staining of the teeth, insomnia, and gastric disorders. Chronic abuse of Khat can cause physical
exhaustion.

Khat is a massive burden on Puntland’s economy growth since years it means that a large
percentage of its foreign currency is used to purchase Khat and they benefited to lost the
controlling of the original money so this circle tells us the outgoing money exceeds more 100
times their interring money when they trading the foreign countries so Khat is one of the largest
challenges that against the economic growth in Puntland.

3
1.3: Purpose of the study:
The purpose of this study was to explore the effects of Khat on economic growth at garowe,
Puntland, Somalia.

1.4.: The general objectives of the study:

The general objectives of the study were analyzed the effect of Khat on the economic growth at
garowe, Puntland, Somalia community and to examine the annual import handled in different
ways like airports and vehicles.

1.4.1: Specific objectives of the study:

✓ To investigate the effects of Khat on economic growth

✓ To evaluate the effects of Khat on human consumption like effects of the mind and the
body

✓ What the determinant of its legal status in the Somalia.

1.5: Research questions:

This study was sought to answer the following research questions:
1: how does Khat effect on economic growth at garowe, Puntland?
2: what the effects of Khat on its consumer mentally and physically at garowe, Puntland?
3: why do people consume chat ore what are the assumed benefits of Khat at garowe, Puntland,
Somalia?

4
1.6: Hypothesis of the Study
Ho: There is no significant relationship between Khat and economic growth.

H1: There is a significant relationship between Khat and economic growth.

1.7: Scope of the study

This study was conducted in selected garowe, Puntland Somalia.

1.8: Significance of the study

The study findings will be useful in the following ways:
1).is important to change the ideas of those people who believe there is an advantage from using
Khat, because the person whom using Khat is same likes those persons who using any other type
of drags.
2).to the government of punt land because the study explains the impact of Khat to punt land
economy as well as the study is significant to health organizations such as who world health
organization and Puntland ministry of health for easy references of Khat problems on personal
health, this thesis also helps individuals to get sufficient information about Khat and refers

3). the study is also important to the people of punt land, as they will get the insight into the
problems of Khat consumption. Through this insight will they get an initiative to work on
educate its population on the cost benefit effect of Khat on the people and make a cost a benefit
effect.

1.9: operational definitions

Khat: Khat is slow growing green shrub and the is most widely grown plants in the world, it
appears to have originated in Kenya, Uganda and contains two active ingredients, cat Hine and
cathinone.

5
Economics: is a branch of social science focused on the production, distribution, and
consumption of goods and service and means is the evidence that the country is developed or
undeveloped country

1.10: Conceptual framework:

Independent variable dependent variable

Khat economic growth

Extraneous variables

➢ Health risks
➢ Unemployment
➢

6
 CHAPTER TWO

LITERATURE REVIEW

2.1.0: Concepts:
2.1.1: Definition of Khat?
Khat is a slow-growing shrub or tree that grows to between 4.5 and 10 feet tall, depending on
region and rainfall, with evergreen leaves 5–10 cm long and 1–4 cm broad. The flowers are
produced on short axillary cymes 4–8 cm long. Each flower is small, with five white petals. The
fruit is an oblong three-valve capsule containing 1–3 seeds Scientific Name(s): Catha edulis
Forks. Family: Celastraceous (moonseed) Common Name(s): Khat, qut, chaat, chat, kaht, tchat,
qaad, jaad, miraa, Kus es Salahin, Tchaad, Tschut, Tohat, Tohai, Gat, Qat.

2.1.2: Concept of Khat shortage in Somalia:

BBC News reported in 2001 on the shortage of Khat leaves in Somalia after a trade ban was
imposed by Kenya earlier that year. Khat has become popular among militiamen, but has been
bad for the economy and for people's health. Khat is banned in the US, Canada, Sweden and
Norway.

In 1965, the World Health Organization (WHO) Expert Committee on Dependence-producing

Drugs' Fourteenth Report noted, "The Committee was pleased to note the resolution of the
Economic and Social Council with respect to Khat, confirming the view that the abuse of this
substance is a regional problem and may best be controlled at that level For this reason, Khat was
not scheduled under the Single Convention on Narcotic Drugs. In 1980, the WHO classified the
plant as a drug of abuse that can produce mild to moderate psychological dependence (less than
tobacco or alcohol),[2] although the WHO does not consider Khat to be seriously addictive.[1] It is
a controlled or illegal substance in some countries, but is legal for sale and production in others.

2.1.3: The concept on Impact of Khat on economy of SomaliaWarlords are able to generate
extra revenue through involvement with the illegal trade of Khat, which according to a 2003
panel of UN experts has been used to generate revenue to buy weapons and prolong Somalia’s
internal strife. Khat use increased dramatically after the outbreak of civil war possibly due to its

7
virtues of escapism. International aid agencies have cited the use of Khat, commonly known in
Somalia as Khat, as a primary cause of the continued fragmentation of Somali society as
researchers have estimated 75 percent of adult males use the stimulus that has addictive
properties that can lead men away from traditional family and work responsibilities.

When the Kenyan border closed Somalia, entrepreneurs turned to the shadow economy in order
to smuggle ‘Khat’ across the Somali / Kenyan border to sell in provincial Somali markets.
Through the illegal cross-border trade, Somali smugglers were able to avoid paying tariff
chargers and trade licenses for the ‘Khat’ making it more lucrative to smuggle on the shadow
economy than to import officially. As the Barre regime became increasingly oppressive, corrupt
and de-legitimized, expansive networks began to form for shadow economic activity. By the late
1980s, trading in small arms was prevalent within the Somali shadow economy as private Somali
entrepreneurs often with links to the Barre regime sold small arms to Somali clans, and
resistance fighters in regional states such as Sudan, Ethiopia and Eritrea. However, at the same
time as this upsurge in small arms sale upon the shadow economy the Barre regime was
becoming increasingly violent towards political opponents with incidents of mass jailing, attack
on civilians and the indiscriminate use of landmines in dissident regions as Julius Ihonvbere
writing in ‘Somalia: The Real Background Issues’ claims that “the Majareeten, the Isaacs, and
the Hawiye clans were ruthlessly suppressed.” Such action did not have the results the regime
intended or expected as opposition to the Barre regime and inter-clan violence began to erupt.
Moreover, increasing numbers of weaker minority clans and sub-clan groups became displaced
from their territory, further worsening the official economy and security in Somali society.

2.1.4: The economy of Khat:

Prior to the expansion of Khat trade, coffee was the biggest crop in Yemen. However, Yemeni
coffee trade peaked in the 17th and 18th centuries and then began to decline from competition
with coffee production in Indonesia, South America, and East Africa. Now, because of national
and regional demand, Khat is replacing coffee crops. Currently, in Yemen, estimates suggest
one-half to two-thirds of arable land has been cultivated for Khat, largely because farmers earn
five times as much for Khat as for other crops, including coffee. In fact, in 1992, Khat "held its

8
price, while coffee slumped." Khat is also Ethiopia's fastest growing export. In Ethiopia, over
93,000 hectares have been devoted to Khat production, the second largest crop in terms of land
area (coffee is first). Though Khat cultivation has taken over the arable land because of its value,
as a crop it is "non-nutritious and unproductive."

The replacement of coffee and other crops for Khat is detrimental to the economy because it
drains foreign investment. Primarily, only local, regional governments and a growing market in
Britain import Khat. Khat is illegal in the United States, Holland and much of Europe. Despite
the regional parameters of Khat trade, an extensive and efficient system of production and
distribution has arisen for the industry. On journalist noted that the "network of production and
distribution is sophisticated, and if ever applied to something other than Khat, Yemen might
suddenly find itself in much better economic condition."

Some argue that Khat harms the economy by encouraging laziness and absenteeism: as workers
go to lunch and then engage in Khat sessions and do not return. A 1973 estimate suggests that
over 4 billion hours of work a year were lost because of Khat chewing. While, today, this claim
is widely disputed, in 1967, the Marxist government of South Yemen attempted to do away with
Khat because of the laziness it allegedly inspired. With wide resistance to a total ban, the
government placed a heavy tax on the narcotic. Surprisingly, the people paid the tax and kept on
chewing. As a result, by 1985 Khat "ranked first among taxes on agricultural products and
second among all excise duties," in increasing revenue.

Khat is also cited as part of the problem for the economies of Ethiopia, Yemen, Djibouti and
others in part because, statistics suggest, nearly every family spends one third of its disposable
income on Khat. In 1993, the average family income in Yemen was $700 a year. Khat can cost
up to $20 per person a day; in 1992, the LA Times reported that Yemeni's spend an estimated $2
million a day to consume Khat. Ultimately, the "crux of the matter is that people do not pay as
little as they can Khat, but as much as they can afford.

A further problem with Khat is the "mafia-like" control over production and distribution. "Those
who produce Khat and those who grow it are so powerful that nobody would start campaigning
against it. . . Like the mafia in Italy or cocaine . . . In Colombia.” For example, in 1983, Somali

9
president Siad Barre banned Khat and called for food crops. However, the ban was repealed in
1990, apparently after the Khat trade had been taken from the border-controlling Ysaaq clan, and
placed in the hands of his administration, triggering accusations that such a transfer of control
had been the intent of the ban in the first place.

Somalia only produces enough Khat for local, rural use. During the civil conflict in Somalia,
warlords controlled the import and distribution of Khat. Much of Somali Khat is imported from
Yemen and Ethiopia. In fact, in 1992, "the value of Khat imported [into Somalia] dwarf that of
any other commodity including food and weaponry." In 1993, the Kenya-Somalia trade in Khat
equaled approximately $100 million annually for wholesalers, transporters and street dealers.
Most of the profits made by the warlords were invested in banks abroad, e.g., Rome, rather than
placed back into the local economy. Further, relief workers and U.S. diplomatic sources
speculate[d] that food and fuel [were] looted and sold for more Khat, rather than" dipping into
existing profits. Finally, it was reported that stolen relief supplies were sold to merchants by the
militias to purchase Khat.

One final note on the economics of Khat trade relates to the potentially violent political
environment. In Somalia, three boys were assassinated on an air strip over 15 pounds of Khat. In
Yemen, increased production of Khat brought attempts to steal it. "A considerable percentage of
the violent deaths in [Yemen] result from theft, and in the absence of efficient police forces,
guarding the fields has become one of the significant costs of the Khat farmer.”.

2.1.5: Health risks of Khat consumption

Use of any drug always carries some risk—even medications can produce unwanted side effects.
It is important to be careful when taking any type of drug.

Immediate effects

a. Increased heart rate, breathing rate, body temperature and blood pressure
b. Increased alertness, excitement and energy
c. Talkativeness

10
 d. Decreased appetite.

Long-term effects

a. Increase in severity of psychological problems

b. Difficulty sleeping
c. Impotence
d. Gastrointestinal tract problems, such as constipation
e. Inflammation of the mouth and other parts of the oral cavity
f. Oral cancer.

Social problems

All areas of a person’s life can be affected by drug use.

1 Disagreements and frustration over drug use can cause family arguments and
affect personal relationships.
2 Legal and health problems can also add to the strain on personal, financial and
work relationships.

2.2: Related studies:

A literary review of the relationship between khat and economic growth is incomplete in
response to a research question about the impact of khat on economic growth. People who chew
khat know that it has a positive effect on economic growth by increasing capital investment and
capital, and people who are discouraged by migration have a different view. They argue that khat
has a negative impact on economic growth because of increased consumption with psychological
and behavioral risks leading to declining employment and declining enrollment in education.
Even the available evidence is highly contradictory, with some researchers concluding that the
positive effects of remittances, partly the negative effects of remittances while some insist that
khat has no effect on economic growth. More research is needed on this topic. Investigating the

11
role of remittances in the economy still faces challenges in terms of quality and d data coverage
in many African countries.

2.3: Research gab:

A research gap is question or problem that has not been answered by any of the existing studies
or research within your field. Sometimes, a research gab exists when there is a concept or new
ideas that has not been studies at all.
Sometimes you will find research gab if all the existing research is outdated and in need of
new/updated research (studies on internet use in 2001, for example).

When we identifying the problem of khat on economic growth in Puntland, so research gap is the
position that clarifying the effect of khat on ourselves mentally and physically so we need to
cancel the consumption of khat or at least to reduce the importation of khat or make awareness
avoid the consumption of khat.

12
 CHAPTER THREE

METHODOLOGY

3.1: Research design:

This research is a case study design using descriptive design, and the use of survey was though
for its uniqueness in gathering information not available from other sources and it enables
unbiased representation of population of interest and standardization of measurement by having
same information collected from every respondent , survey design was used to describe current
conditions and to investigate the influence of khat to economy of Somalia using information
gained from the interview, the qualitative approach was used to explain the events and describe
findings.

3.2: Research population:

The study was carried out in all towns of Garowe which most of khat are imported,
approximately there are 130 maqsins that deal with the importation khat in different towns of
Garowe , Garowe central business district is a major town having maqsins, maqsins acts
wholesalers of khat there are individuals those bought from wholesalers and re-sale as retail
about 120% of these retailers are woman employees setting sides of long streets punt land
ministry of planning and statistics estimates about 500 employees re-sale khat in different
positions in Garowe alone the study was also to display number khat employees living other
Sub-towns in Garawe. therefore, this study was focused on the selected around 30 of in garowe
city so our target population was 30.

3.3: Sample size:

The sample size was 30 maqsins that were to 5% of the total maqsin of GAROWE
region, which n = 30/ 1 +30*(0.05) ²
n = 30/ 1 +30*(0.0025)
n = 30 / 1.075
n = 285% is enough to derive detailed data at an affordable cost in terms of time, finance
and human resource.

13
3.4: Sampling procedure:

The sampling procedure that was used is Simple random sampling within population

The reason of choosing this procedure is in order to give population equal chance of
being respondents and prevents the use of bias.

3.5: Research instrument:

A questionnaire instrument was developed by the researcher covering all the aspect of the study
and adequate information were obtained from respondents though the question, the study also
considered with target respondents in their respective places such as khat business positions and
maqsin and asking them questions of which the researcher was recorded all the responses by the
himself. The questionnaire was first pre-tested before administering it to the actual selected
respondent.

3.6: Validity and reliability of the study:

The questionnaire was pre-tented for its reliability and validity before administering it on the
selected employees of khat.

A) validity refers to the trustfulness of the finding or the extent to which instrument is relevant in
measuring what it is supposed to measure, the relevance of the questions used to measure the
validity of the instrument.

B) Reliability of a measure indicates the extent to which it without bias therefore ensures
consistent measurement across time and across the various suggesting items in the statement
suggesting that the finding would be consistently the same if the study was done over again.

14
3.7: Data gathering procedures:

The data used were collected using both primary and secondary sources of collection; the
secondary sources consist of Journals, Newspapers and magazines as well as texts. The primary
sources are questionnaires and direct interviews. 28 of questionnaires took to the respondents in
Garawe.

3.8: Data analysis:

This research employed EXELSHEET (Statistical Package for Social Sciences) software to
statistically analyze the primary data.

The raw data generated though the questionnaires all cleaned, sorted, and coded. The coded data
was be entered safety hard disk or flush and careful examined the respondent’s answers were
related to questions asked questionnaires. Qualitative data collected using questionnaires guides
and documentary review will be analyzed and categorized, the data was used to reinforce
information gathered though questionnaire in order for the researcher to draw a meaningful
conclusion.

3.9: Ethical consideration:

Ethical measures are principles, which the researcher was bind himself with; in conducting his
research in this study, the researcher followed the following ethics:

3.9.1: Permission to conduct the research:

In order, the researcher to conduct the study he sought an approval from the ministry of import,
export, and Bosaso University Garowe section before data is collected and processed his duties.

3.9.2: Informed consent:

I am open-handed my consent to be part of the research study of Mr. Abdullahi research that was
Focus the effects of khat on economic growth, I was be guaranteed of privacy, secrecy and
confidentiality and that I was be given the option to refuse contribution and right to pull out my
participation anytime

15
 I have been informed that the research is volunteer and that the result was be given to me if I ask
for it.

3.10: Limitation of the study

The research had limitations where the Khat sellers were suspicious of a possible investigation by the
competing industries and firms hence give bias results, but the business sellers were assured of all the
intentions of the research findings was purely academic.

There were limitations where extra information may not be gotten because of the questionnaire, but the
research got more information from interviewing the managers, Vendor’s observations and document
analysis.

Some government staff had busy work schedule e.g., Attending to customers and clients but this was
solved by sticking to the allocated time and appointments where necessary.

16
 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.1: Introduction
This chapter presents the data analysis, discussion of the data collected and interpretations of the
study. This chapter involves the effects of khat on economic growth in Garowe City, Puntland-
Somalia. This research studied how khat effect human mentally and physically.

The 28 completed questionnaires a guide schedule questions were edited for accuracy,
uniformity, consistency and completeness. Summaries of data findings together with their
possible interpretations have been presented by use of percentages, frequencies and tables. All
the survey questionnaires were filled correctly which means the response rate representing 100
percent.

4.2 Demographic Characteristics of the Respondents

Table 4.1 Gender of the Respondents

Gender Frequency Percentage (%)

Male 21 75%

Female
7 25%

Total
28 100%

Source: Primary Data, 2022

As indicated in the above table 4.1, 21 (75%) of the respondents were male and 7 (25%) of the
respondents were female. This shows that the majority of the study respondents were male.

17
Table 4.2: Age of the respondents:

Age interval Frequency Percentage

10-20yrs 2 7.1%

21-30yrs 7 25.0%
31-40yrs 10 35.7%

Above 40yrs 9 32.1%

Total 28 100.0%
Source: Primary Data, 2022

CHART TITLE

Jobless Student

Businessman

Soldier

Driver

Source: Primary Data, 2022

As shown the above table 4.2, 10 (35.7%) of the respondents were aged 31-40 years. 9(32%) of
the respondents were above40 years, 7(25%) of response were age 21-30yrs, and the remaining 2

18
(7%) were 10-20yrs. This reveals that the majority of the respondents were aged between 31-40
years and in the most productive age brackets of their life.

Table 4.3 Marital Status of the Respondents

Status Frequency Percentage

Single 18 64.3%

Married 10 35.7%

Total 28 100.0%
Source: Primary Data, 2022

As illustrates the above table 4.3, majority 18 (64.3%) of the respondents were single, while 10
(35.7%) of them were single, this means that the majority of the respondents were single.

4.4: How many years are you ate the KHAT?

Years Frequency Percentage

0yrs 4 14.3%

1-3yrs 12 42.9%

4-10yrs 8 28.6%

Above 10yrs 4 14.3%

TOTAL 28 100.0%
Source: Primary Data, 2022

As shown the above table, 12(42.9) were 1-3yrs, 8(28.6) were 4-10yrs while remaining part were
equals 4(14.3), so majority were 1-3(42.9).

19
Table:4.5: Occupation of the responders:

Job Frequency Percentage

Student 4 14.3%
Businessman 3 10.7%

Driver 2 7.1%
Soldier 5 17.9%

Jobless 4 14.3%

Government 10 35.7%

Total 28 100.0%
Source: Primary Data, 2022

OCCUPATION
Student
14%
Government
Businessman
36%
11%

Driver
7%

Soldier
Jobless 18%
14%

As shown the above table, 10(35.7) were the majority government, 5(17.9) were soldiers, 2(7.1)
were drivers, 4(10.7) were businessmen and remaining parties were equals and they 4(14.3)
students and jobless, this means the majority were the people who worked the government.

20
Table 4.6: khat users they spend money carelessly on Khat consumption than foods and other
basic needs

Responders Frequency Percentage

Agree 10 35.7%

Strong agree 12 42.9%

Un-decided 3 10.7%

Dis-agree 2 7.1%

Strong disagree 1 3.6%

Total 28 100.0%
Source: Primary Data, 2022

khat users they spend money

carelessly on khat
36.00% 1.2

35.00% 1

34.00% 0.8

33.00% 0.6

32.00% 0.4

31.00% 0.2

30.00% 0
10 9

Series1 Series2

As indicates the above table, 12(42.9) of responders is strongly agree,10(35.7) were agree ,3(10)
were undecided,2(7.1) were disagree and finally 1(3.6) were disagree, so majority was strongly
agree that tells us khat users they spend their money on khat carelessly.

21
Effects of khat on the economy:

The habit of Khat chewing does manifest a number of socio-economic problems. Khat chewing
leads to loss of work hours decreased economic production, malnutrition and diversion of money
in order to buy further khat. Family life is harmed because of neglect, dissipation of family
income and inappropriate behavior and khat is quoted as a factor in one in two divorces in
Djibouti. Acquisition of funds to pay for khat may lead to criminal behavior and even
prostitution.

Table4.7: khat has led to increased national income of the country

Responders Frequency Percentage

Agree 5 17.9%

Strong agree 3 10.7%

Un-decided 1 3.6%

Dis-agree 10 35.7%

Strong disagree 9 32.1%

Total 28 100.0%
Source: Primary Data, 2022

KHAT HAS LED ECONOMIC OF THE

COUNTRY
Agree
Strong disagree 18%
32%
Strong agree
11%

Un-decided
3%

Dis-agree
36%

22
From the above table, 10(35%) were dis-agree,9(32.1) were strong dis-agree,5(17.9) was
agree,3(10.7) were strongly agree and finally 1(3.6) was undecided, so the greatest part were dis-
agree.

Table 4.8: There are families and relatives of khat benefit from the khat revenues

Responders Frequency Percentage

Agree 6 21.4%

Strong agree 8 28.6%

Un-decided 6 21.4%

Dis-agree 5 17.9%

Strong disagree 3 10.7%

Total 28 100.0%
Source: Primary Data, 2022

Responders families benefit from khat

0%

Dis-
agree Agree
20% 24%

Un-
decided Strong
24% agree
32%

As indicates the above table, 7(28.6%) were strongly agree, 6(21.4) was agree, while undecided
were 6(21.4%), 5(17.9) were disagree and finally were strong disagree 3(10.7), so the families
were trading the khat were effected to the Somali community.

23
Table 4.9: The benefit of negative effects of khat is more than its positive effect.

Responders Frequency Percentage

Yes 20 71.4%

No 8 28.6%

Total 28 100.0%
Source: Primary Data, 2022

As indicates the above table, 20(71.4%) were yes, where the remaining part were 8(28.6) no, so
the above table tells us the negative of khat was more than the positive.

Table 4.10: Does the khat effect the health of the consumers?

Responders Frequency Percentage

Yes 26 92.9%

No 2 7.1%

Total 28 100.0%
Source: Primary Data, 2022

As shown the above table, 26(92.9) were yes while remaining part were no, so the above table
tells us the majority were yes so tells it khat effects the health of the consumers.

24
Table 4.11: Job creation is a possible solution to the khat problem?

Responders Frequency Percentage

Yes 23 82.1%

No 5 17.9%

Total 28 100.0%
Source: Primary Data, 2022

As shown the above table, 23(82) were yes while remaining part were no, so we said job creation
is one of the solutions of khat problem.

Table 4.12: if we increased the tax on khat imported is a possible solution?

Responders Frequency Percentage

Yes 27 96.4%

No 1 3.6%

Total 28 100.0%
Source: Primary Data, 2022

As shown the above table, 27(96.4) were yes while other was no, so we said if we increasing tax
on the importation of khat is possible solution of khat.

25
Table 4.13: The selling of khat and other drugs should only be sold to government have
authority to control and end khat.

Responders Frequency Percentage

Yes 22 78.6%

No 6 21.4%

Total 28 100.0%
Source: Primary Data, 2022

As shown the above table, 22(78.6) were yes while other part was no, so the above table tells us
government authorized the khat selling and then end it.

26
 CHAPTER FIVE

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1: Introduction
The previous chapter discussed data analysis, interpretation and findings. This chapter Draws
conclusions and proposes recommendations which will assist the Puntland government in
effective policy-making to mitigate the high level of khat consumption which exists in Garowe
and other regions of the country. The preceding chapters are summarized and the research
objectives are revisited. The main objective of this study was to determine the effects of khat on
economic growth the in Garowe-Puntland-Somalia.

5.2: FINDINGS
The major findings of the study were interpreted and presented in relation to the objectives of
the study. During the analysis of data presented in chapter four, the researcher found out that,
that the majority of the respondents were males since they were 75% and their female
counterparts were 25% of the staff of maqsin. Whereas the workers of maqsin place emphasis
on gender balance and equity in all places of selling khat was found to have less women than
men. Simply because most women prefer staying at and looking after the family and also knows
the researcher the highest level of consuming khat were above 1-3yrs those are 42.9%.

The researcher was interested in knowing the area of residence of the respondents and the most
resident were Garowe District.

5.3: CONCLUSIONS
The major conclusion of the study was interpreted and presented in relation to the objectives of
the study. During the analysis of data presented in chapter four, the researcher found out that,
that the cause of khat consumption activities include Unemployment of many youths, availability
of Cheap khat used in the trade, few or no police guarding the Somalia drugs activity, Less and
inadequate national and international war against khat and its business and consumption. These
make khat retailers and wholesalers piracy to continue thriving.

27
Lack of Regulation: In some quarters there has been erosion of the view that khat chewing is
drug use crime in Somali when the Somalia central government prohibited khat chewing and
khat business. As shows in table 4.4 the major of the khat chewers have not academic education
they haven’t any educational background but they have experience due to khat chewing.

The researcher found that most of khat chewers in Puntland are government staff, drivers also
have major conception of khat. Also, unfortunately the researcher found that the khat
consumption in Puntland is increasing and the market of khat is one of the highest speeds in the
Puntland markets.

Garowe town is the major population of Puntland towns so that has the biggest khat market of
Puntland; it also has more maqsins which distribute khat to the retailers. The most khat retailers
are female a few of them are khat chewers, although there is clear increase of female whom
become khat chewers. Before Somalia became famous for its consumption of khat and khat
business activities the decease of cancer was very little but know cancer is much more
However, poverty, hunger, and unemployment thrived.

5.4: RECOMMENDATIONS
However, in this research that a khat affected all aspects (social, political, economic and cultural)
of human being so that it totally was brought on all negative actions for human being and I
would like to suggest in this recommendation to the following articles.

To get central government that will operate prevent on its people both socially and economically
to reduce the chat that the imported into the country, to give the Somali population of khat
consumers social awareness and community orientation against khat consumption.

To take necessary steps in order to reduce a khat imported in the country through imposing a
high taxation on it, forming and intervals to be imported like every 2 weeks only one day
imported, then ban it or prohibited.

If it is being banned, it is necessary to look for challenges/alternatives to replace it like creating

entertainment center, making recreational Centre, establishing a high educational opportunity I
order to full fill the gap/position.

28
There is evidence to the answer of respondents many of khat consumers have claimed an un
employment so, an idleness pushes you to take khat chewing said one of them after that it must
be created job, job opportunities and also expanding the educational facilities and social
mobilization.

To encourage the individual those prohibited themselves and also pray of Allah to be hated on
khat consumers.

After the completion of the study on the khat and the potential effect on its consumers in
Puntland local authorities some recommendations were formulated on the basis of the findings
obtained, so as to help the khat consumers and to make awareness about khat consumption.

Puntland government must make match effort to make a good decision against khat, by
increasing tax of the khat, and making good reward to the khat business organization if they stop
that drug and make axial business and.

In Puntland sheikhs must make them effort by telling to the people the bad effects of khat
consumption and that Allah prohibited all drinks or foods that can change your mental and effect
badly to your healthy.

The population must know the effects of khat chew and punt land ministry of healthy must have
a good policy due to khat and its consumption.

29
 REFERENCE
ACMD. (2005). Khat (qat): Assessment of risk to individual and communities in the UK.

In Advisory Council on the Misuse of Drugs (ACMD) (Ed.). London: British

Home Office.

Adugna, F., Jira, C., & Molla, T. (1994). Khat chewing among Agaro secondary school

students, Agaro, southwestern Ethiopia. Ethiop Med J, 32(3), 161-166.

Ahmad, B., Mufti, K. A., & Farooq, S. (2001). Psychiatric comorbidity in substance

abuse (opioids). J Pak Med Assoc, 51(5), 183-186.

Ahmad, A., Sundelin-Wahlsten, V., Sofi, M. A., Qahar, J. A., & von Knorring, A. L.

(2000). Reliability and validity of a child-specific cross-cultural instrument for

assessing posttraumatic stress disorder. Eur Child Adolesc Psychiatry, 9(4), 285-

294.

Ahmed, A. G., & Salib, E. (1998). The khat users: A study of khat chewing in Liverpool's

Somali men. Med Sci Law, 38(2), 165-169.

AKUF. (2003). Kriege Archiv: Somalia. Hamburg: Arbeitsgemeinschaft

Kriegsursachenforschung der Universität Hamburg.

Al-Ghdaian, A. A. (1983). Khat in the shari'ah (islamic law). Paper presented at the

International conference on Khat: The health and socio-economic aspects of Khat

use, Antananaribo, Madagascar.

Al-Habori, M. (2005). The potential adverse effects of habitual use of catha edulis (khat).

Expert Opin Drug Saf, 4(6), 1145-1154.

Al-Hebshi, N. N., & Skaug, N. (2005). Khat (catha edulis)-an updated review. Addict

30
Biol, 10(4), 299-307.

Al-Motarreb, A., Baker, K., & Broadley, K. J. (2002). Khat: Pharmacological and

medical aspects and its social use in Yemen. Phytother Res, 16(5), 403-413.

Alem, A., Kebede, D., & Kullgren, G. (1999). The prevalence and socio-demographic

correlates of khat chewing in Butajira, Ethiopia. Acta Psychiatr Scand Suppl, 397,

84-91.

Alem, A., & Shibre, T. (1997). Khat induced psychosis and its medico-legal implication:

31
 APPENDIX: QUESTIONNAIRE

My name is Abdullahi Mohamed Ali a Student of Bossaso University (UOB) in Garowe,

Puntland-Somalia, pursuing a Bachelor Degree of Accounting. I am, carrying out the
research on the effect of khat on economic growth in Garowe, Puntland-Somalia. I kindly
request you to provide me with information and feel free.it will be treated as confidential and
used for academic purpose only.

SECTION A: RESPONDENTS BACKGROUND INFORMATION.

1). Your sex? Male [ ] Female [ ]

2). Your age? 10-20yrs [ ] 21-30yrs [ ]

31- 40yrs [ ] above 40yrs[ ]

3. Marital status: Single [ ] Married [ ]

4.how many years are eating khat:

0 yrs. [ ] 1-3yrs. [ ]

4-10 [ ] Above 10years

5. Your occupation is:

Student [ ] Businessman [ ] Driver [ ]

Soldiers [ ] Government [ ] Jobless [ ]

32
SECTION B: EFFECTS OF KHAT TO SOMALI COMMUNITY

Please indicate your response to the following statement measuring Khat Growing by ticking
the appropriate corresponding choice

1: Strong agree, 2; Agree. 3: Undecided 4: Dis-agree, 5: strongly disagree

Statement SA A U D SD
6 Khat users they spend money carelessly on Khat
consumption than foods and other basic needs
7 khat has led to increased national income of the
country
8 There are families and relatives of khat benefit from
the khat revenues

9: The benefit of positive effects of khat are more than negative effects

Yes [ ] no [ ]

SECTION C: EFFECT OF KHAT ON THE CONSUMERS

10. Does the khat effect the health of the consumers?

Yes [ ] No [ ]

SECTION D: POSSIBLE SOLUTIONS TO KHAT

11: Is job creation a possible partly solution to khat problem?

Yes [ ] No [ ]

12: If we increased the tax on khat imported is a possible solution?

Yes [ ] No [ ]

13: the selling of khat and other drugs should only be sold to government have authorized the
khat selling and then end it.
Yes [ ] No [ ]

33
 APPENDIX Iv: TRANSMITAL LETTER

Student with his letter is students of university BOSASO garowe and pursuing bachelor degree
of commerce in accounting

They are currently conducting research on the effect of khat on economic growth. Your
organization has been identified as a valuable source of information pertaining to his research
project the purpose of his letter is to request you to avail them with the information, they may
need any information shared with him from your organization shall be treated with ut most
confidentiality.

Any assistance rendered to them will be highly appreciated

You truly

Mohamed Omar Jama

Dean faculty of commerce and modern management

………………………………..

34
 APPENDIX II: INFORMED CONSENT

I am open-handed my consent to be part of the research study of Mr. Abdullahi research that was
Focus the effects of Khat on economic growth, I was be guaranteed of privacy, secrecy and
confidentiality and that I was be given the option to refuse contribution and right to pull out my
participation anytime

I have been informed that the research is volunteer and that the result was be given to me if I ask

for it.

Initials: ________________

Date___________________

35
 APPENDIX I: RESEARCH INSTRUMENT
Questionnaires was used for collecting data concerning the relationship between Livestock and
the Government's ability to pay its employees. This was chosen due to the data to be collected,
time and financial constraints as well as considering the objectives of the study. The
questionnaire is a carefully designed instrument for data collecting in accordance with the
specifications of the research questions, which consists a set of questions to which the subject
respondent responds in writing, Oslo Willis (2003) the questions was semi-structured and close-
ended questions. The researcher believes this tool was most reliable instrument to get the
necessary information.

36
 CV
Abdullahi Mohamed Ali
Garowe
Mobile : +252907555400 E - mail : [email protected]

Personal Profile
I am a loyal, talented and caring teacher who loves making a difference in the lives of
young children. I am open - minded, patient and supportive towards other people,
especially towards children or those who suffer from disabilities. In my previous role as
a primary school teacher, I have taught and nurtured more than 100 pupils from all
backgrounds, successfully preparing them for the next stages of their young lives.
Education
➢ Al-waha primary and secondary school Graduated 2019 -
( ) -
➢ Bosaaso university garowe (accounting Will graduated 2019- - 2022

Work Experience
➢ Home teaching 2016 - 2019

Skills
➢ IT Skills – being able to use the computer to accomplish tasks
➢ Communication – being able to listen/talk to people in a constructive manner
➢ Problem - solving – being able to offer solutions to problems
➢ Teamwork – being able to work with other people to achieve a common goal
➢ L leadership – being able to take responsibility, lead/mentor others, etc.
➢ Organization – being able to meet deadlines, plan and schedule tasks, etc.

Hobbies and Interests

In my free time, I like to visit the eyl and take time my family and helping student and
participate the corban and helping my family and I hope to achieve my goals.

Referees
37
Name : Mr. Mohamud Abdullahi area assistance of civic education facilitator

Email : [email protected]
38