Prior to 1991, there was a small manufacturing sector, based primarily on the processing of agricultural products, and consisting of a few large state enterprises, hundreds of medium-sized private firms, and thousands of small-scale informal operations. Large-scale enterprises were dedicated mainly to the processing of sugar, milk, and hides and skins. Overall manufacturing output declined during 1980s as a result of inefficient state enterprises failing under market conditions. Manufacturing activity was further curtailed by civil war and collapse of the Somali state. By 1990 manufacturing ceased to play a significant role in economy and is currently about 5 percent of GDP.
At 0.3 percent of the GDP in 1988, mining's contribution to the economy was negligible, despite substantial deposits of gypsuman hydrite, quartz and piezoquartz, uranium, and iron ore. Gold deposits are suspected but not confirmed.
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