Siyad Ali, 2, a severely malnourished refugee from Somalia, is fed food supplements inside the stabilisation ward in the International Rescue Committee, (IRC) clinic at the Hagadera refugee camp in Dadaab, near the Kenya-Somalia border.
Siyad Ali, 2, a severely malnourished refugee from Somalia, is fed food supplements inside the stabilisation ward in the International Rescue Committee, (IRC) clinic at the Hagadera refugee camp in Dadaab, near the Kenya-Somalia border.
Siyad Ali, 2, a severely malnourished refugee from Somalia, is fed food supplements inside the stabilisation ward in the International Rescue Committee, (IRC) clinic at the Hagadera refugee camp in Dadaab, near the Kenya-Somalia border.
Siyad Ali, 2, a severely malnourished refugee from Somalia, is fed food supplements inside the stabilisation ward in the International Rescue Committee, (IRC) clinic at the Hagadera refugee camp in Da

Among Somalia's famine victims, some must walk and some can take the bus


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LIBOI, Kenya // Even among refugees fleeing famine-stricken Somalia there are the "haves" and "have-nots": those who cross the border in a battle for survival and those who can pay for a car.

"I paid $150 to be brought here from Mogadishu," said Abshira Abdullahi, speaking in the courtyard of a guesthouse after emerging from a crowded mini-van.

For most of the destitute families trekking through rebel-controlled southern Somalia, their livelihoods destroyed by the triple shock of conflict, the worst drought in decades and a lack of food aid, that is a princely sum beyond dreams.

Abdullahi left her five children in the care of her younger brother, saying life had become unbearable in Mogadishu's Madina district, near the capital's old quarter, where once-majestic colonial facades now tumble into the turquoise ocean.

Two decades of civil war in Somalia have reduced much of the city to rubble. An insurgency started in 2007 still rages on, with almost daily tit-for-tat artillery fire and gun battles between Al Qaeda-linked Islamist militants and Somali forces.

"Life in Mogadishu was like being under house arrest," said Abdullahi, a 30-year-old divorcee.

The United Nations has declared famine in two regions of Somalia and says 3.7 million people in the country are going hungry because of drought.

In a report for countries sending aid, the UN's umbrella humanitarian agency, OCHA, said the crisis was expected to continue to worsen during 2011, with the whole of the south slipping into famine.

The sandy, windswept town of Liboi, a small trading centre patrolled by marabou storks less than 20km from the border, was Abdullahi's final stopping point on her way to the overflowing Dadaab refugee camp 80km deeper inside Kenya.

In early 2007, Kenya officially closed its frontier with Somalia, marked outside Liboi by a single concrete pillar and two makeshift military road-blocks, in an effort to block the movement of Somalian Islamist rebels.

The closure forced the shutdown of a transit centre in Liboi where the UN refugee agency screened, registered and handed out food rations to incoming asylum seekers before transporting them to Dadaab.

Several lodges have sprung up in the dusty alleyways behind the main street, owned by Liboi's bigwigs, who see money to be made from the wealthier refugees before their final push to Dadaab.

Business has boomed with the recent influx of refugees. A local administrator, speaking in the courtyard of another guesthouse, where as many as 10 family members were squeezed into a single room with three beds, said: "We run this as a private lodge."

A young boy collecting cash said the charge was 100 Kenyan shillings (Dh4) per person, though for a couple with five children this was discounted to 400 shillings.

Over mugs of sweet milky tea, some residents muttered that it was not surprising that some officials were reluctant to throw their weight behind re-opening the transit centre, given that it would probably kill the lodges' business.

Hassan Mahmoud Mohammed would have welcomed a UN reception centre.

His family sat exhausted in the grounds of Liboi's clinic, the children's feet deeply cracked after dragging their scrawny limbs for 15 days from southern Somalia's Lower Shabelle region, the famine's centre.

Mr Mohammed, who has seven children, told Reuters: "We walked up to 12 hours a day without anything to drink, no water, no milk, only what people we passed gave us.

"The children don't understand what is going on. At least we're told here we'll get assistance," he said

But he was wrong. Apart from water from the town's borehole, there would be no help until they reach at Dadaab, a sprawling tent and shack city of more than 400,000 people and the world's largest refugee camp.

A local resident, Adow Noor Burl, said: "They're needy and vulnerable people but what more can we give them? There's also a drought here. It would be too much of a burden." .

Moments later, a gang of loud-mouthed youths kicked Mohammed and his family out of the clinic, demanding they take their illnesses elsewhere.

Visiting aid workers watched as Mohammed and his children trudged wearily down the road to Dadaab.

While Mohammed asked for nothing more than food, water and safety for his family, Abdullahi, a bus ticket to Dadaab in hand, had grander expectations.

"Perhaps I will be resettled to Australia where I have family," she said.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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- Abdullah Ishnaneh, Partner, BSA Law