Economic: Nyumba

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By most modern standards, Nyumba is a very weak or failed state economically. A relatively small group of powerful individuals controls the financial, trade, banking, and commodity sectors within the country. The main focus of this group is to ensure that they remain in power and control of the country and its economy. The country ranks high on the GINI index of the distribution of income within the economy, with the ruling elite holding 85% of the wealth. There are some tribal influences in the government and its handling of the economy, but generally those in power do whatever is necessary to remain in control. Manipulation of all resources to further the wealth and gain of the group is a common theme - fostering lax regulation and oversight of economic activities. Legitimate and illicit activities exist on equal footing in Nyumba, with the poor bearing the burden.

The country’s basic infrastructure does not support economic growth. Few modernized roads, a limited power distribution grid, no rail lines, pipelines, or other basic infrastructure severely restricts economic development. Lack of basic infrastructure does lend itself to development opportunities if the government can find the funds or investors interested in undertaking high risk projects. A recent railroad project between Kismaayo and Lamu is a prime example. The government is borrowing $1.1B from the Olvana Export-Import Bank and an Olvanan construction company is leading the project.

With oil as the main revenue generating resource for the country, the economy is subject to commodity value swings. The recent downturn in worldwide oil prices is reflected in the GDP trending downward and the government running an ongoing deficit. To counter the trend, the Nyumba Finance Minister recently doubled last year's production targets and implemented economic austerity measures.

Economic characteristics include;

• Comparatively low and declining GDP growth; Downward trend in GDP over the past 5 years
• Very low level of government regulation of financial activities; labor laws are very rudimentary with child labor accepted as the norm
• Government has difficulty curbing Illegal activity such as counterfeiting and in some cases government officials are actually the head of illegal activities.
• Gross corruption and financial mismanagement
• Hampered by lengthy internal conflict between tribal groups with little government control over much of the country
• Very limited infrastructure to support economic development
• Vast and largely untapped natural resources; oil reserves in limited production; uranium reserves but no current production
• Foreign aid and humanitarian relief contributes to corruption in the involved government agencies
• Foreign investment is very low due to the lack of stability and high risk environment caused by the on-going low-level conflict

Table of Economic Data

Measure	Data	Remarks (if applicable)
Nominal GDP	$2.92 billion	Agriculture 31.4%, Industry 63.4%, Services 5.2%
Real GDP Growth Rate	-6.3%	5 year average 0.6%
Labor Force	5.3 million	Agriculture 65.4%, Industry 25.0%, Services 9.6%
Unemployment	13.0%
Poverty	79.6%	% of population living below the international poverty line
Net Foreign Direct Investment	$173.59 million	No outbound FDI
Budget	$419.63 million revenue $441.89 million expenditures
Public Dept.	18.4% of GDP
Inflation	2.5%	5 year average 3.3%

Participation in the Global Financial System

Nyumba’s oil production leads its involvement in the global financial system. It is caught between the desire to reap the benefits of cartel membership and the pressure to maximize production to maintain income when oil prices are low. This circumstance also motivates Nyumba sell oil to countries under United Nations sanctions.

Nyumba is not a rival to its neighbors in terms of legitimate economic activities. Illicit activities, on the other hand, are a significant issue. Nyumba targets the financial sectors of its neighbors for penetration and exploitation using North Torbia’s cyber capabilities. Nyumba’s diaspora provide a critical source of income that helps meet national income requirements. International humanitarian aid and diaspora contributions do much to feed the population during famine.

Nyumba’s poorly guided approach to trade, loans, and grants makes it susceptible to economic manipulation from numerous sources. This is particularly true of Olvana and the tendency for its loans or aid to come with significant conditions and, in some cases, outright coercion. Nyumba carries loans from the International Monetary Fund (IMF) and all quarters of the globe, including North America, Olvana, Donovia, Western Europe, and the Middle East.

World Bank/International Development Aid

Nyumba is the most oil-dependent country in the world. Its long legacy of conflict and limited development leave it with significant economic challenges. Declining oil revenues from exports caused by declining oil prices, coupled with disruption of oil production by the continuing conflict, severely handicap the country's ability to progress economically. Prolonged conflict destroyed much of the infrastructure used to support financial operations or prevented new facility construction.

World Bank programs comprise 8 infrastructure development projects totaling $141 million dollars spread through 37 locations in Nyumba. The three elements of the programs include: refurbishment or reconstruction of the pre-conflict regional facilities, establishment of interim regional administrations (IRAs), and emergency works to respond to natural disasters.

Foreign Direct Investment (FDI)

Nyumba seeks FDI from all sources in an effort to expand the economy, particularly in the area of oil production and export. Further development of oil production capability is viewed as an initiative that will support development of other resources such as natural gas or uranium. Infrastructure projects such as new roads, ports, and power generation will serve to expand Nyumba’s ability to benefit from the export of natural resources. The government actively pursues FDI with Olvanan and North Torbian companies.

Olvana’s development project involves several East African countries with Nyumba being principle among them. One of the largest components is the investment in the construction of a deep-water port at Lamu and supporting road network. The multi-billion dollar projects provide significant benefit to Nyumba but it also makes the country reliant on Olvana. Olvanan companies use very little Nyumban labor for construction and even less for supervision of its projects.

Trying to gain more control over FDI, Nyumba covertly approached North Torbia to develop potential interest in oil and uranium extraction. Lacking capital, North Torbia struck a barter-type agreement exchanging natural resources for Information, Communications, and Technology (ICT) assistance. The international sanctions against North Torbia make it critically important that the agreement remain secret, so Nyumba carefully segregates its dealings with Olvana and other foreign business partners. For its part, North Torbia uses a network of shell companies to create an outward image of legitimate business operations.

Economic Activity

Corruption at the highest levels of leadership in the country remain the main detractor for Nyumba’s economic activity. That coupled with the downturn in worldwide oil prices caused the country’s economy to slow in recent years. Most economic activity centers on production of agricultural products and the slow development of the oil sector. Overall no specific sector serves as the driving economic engine for the country but the expectation is that the investment by Olvana will serve as a stimulus for the oil sector and all associated supporting businesses.

There is wide separation between the majority of the population and the wealthy elite. Nyumba is working towards reinstatement with the International Monetary Fund (IMF) and other international donors after it was suspended when senior leaders borrowed $1.2B in government backed loans without parliamentary approval. Following their ouster, the new government agreed to an international audit and increased IMF monitoring.

Economic Actors

The ruling elite of the country use their position for personal gain with significant corruption and manipulation of the economy in all levels of government. A diplomat recently characterized the group as, “shameless looters who are living in luxury while showing breathtaking indifference [to their people].” Leaders and government officials manipulate economic policies to enhance their personal benefit. Only because of pressure from the population are they interested in economic improvements that ensure they will remain in power. Government leaders influence humanitarian aid shipments as a tool to retain power as well. Contracts for food or aid distribution flow to those supporting the leadership whenever the opportunity develops.

The people of Nyumba are adept at navigating through these risky financial seas. Using tribal influence and leverage they are able to maintain day-to-day existence. Dealings with businesses outside the tribe typically involve an alternate producer price for commodities they sell. The outsider price includes a markup in anticipation of the inevitable “baksheesh” payments necessary to successfully complete a business transaction. Business reciprocity is actively practiced as well. Bargaining and negotiating involve expected concessions that create and maintain relationships that will be repaid at some future time. Balanced reciprocity creates an informal balance ledger between trusted businesses that characterize normal transactions. Nepotism and cronyism, as defined by the West, are both strongly entrenched in not only the government but also in many leading businesses in Nyumba. Both practices are normal and expected in Nyumban business dealings.

Legitimate business owners struggle to establish and maintain normal operations in Nyumba. Only by joining in and using the influence of power brokers in the government are they able to remain competitive. Illegitimate operators find that there are few government policies or laws related to financial activities that hinder their enterprises. Customs officials can easily be bribed to authorize shipment of what would otherwise be seized contraband. These common arrangements also allow criminals to siphon off humanitarian aid donations from other countries or aid organizations for sale on the black market.

Financial institutions maintain dual business positions. They have legitimate business operations for dealing with national and international businesses and illegal operations that conduct money laundering, predatory loan practices, or other illegal activities. As Nyumba seeks outside investment, the presence of foreign businesses is more prevalent in large transactions. Principally, Olvanan businesses operate in Nyumba with backing from both governments that gives Olvanans a significant advantage over local firms attempting to compete. This advantage allows the Olvanans to strike advantageous agreements for commodities and labor.

Trade

Nyumba’s trade continues to be dominated by agricultural and growing oil exports. Oil trade partners are in the lower tiers of international oil consumers but are critical to Nyumba’s economic health. Worldwide declining oil prices have a significant impact on the country’s economy. Even through Nyumba runs an increasing trade deficit, it is essentially trapped in the cycle because of the limited commodities available for international trade.

Hoping to relieve the growing deficit, Nyumba is actively working with international investors to develop other sectors such as mining, natural gas, and fishing. To secure these sectors the government launched security programs to protect the resources in anticipation of the development.

Internal security forces actively patrol to prevent or stop illegal mining. Coastal security patrols attempt to secure Nyumban fishing grounds, where the main threats are foreign fishing fleets. These fishermen report Nyumban patrol craft firing on trawlers under the cover of darkness in efforts to sink or damage the vessels.

Nyumba imports all finished products since they lack manufacturing and refining facilities. Even though agricultural products are a major export for the country, it still must import much of the food necessary to feed the population. The same is true for refined petroleum products.

As a result, the government maintains very liberal trade policies with few tariffs in an effort to simplify and encourage trade. This approach extends to practices that include allows Nyumban businesses to trade with international partners that are under UN or US sanctions. North Torbia is a key trading partner for oil and a growing consumer of Nyumban seafood.

Commercial Trade

Commercial trade for Nyumba totals 1.6 billion; exports of $550 million and imports of $1.05 billion. The large deficit is the result of low oil prices, limited refining and manufacturing capabilities, and limited markets for agricultural products. Nyumba’s’ largest trading partners are Olvana, Persian Gulf states, and North Torbia. Oil (64%) is the primary export, agricultural products (20%), livestock (12%), seafood (3%), and charcoal (1%). Approximately one quarter of the exported oil makes its way to North Torbia through commercial shippers via Asian shell companies.

Leading imports are fuel (35.3%), petrochemicals (4.1%), other vegetables (30.9%), sugar (10.0%), rice (9.6%), wheat flour (9.3%), and agricultural implements (.8%). Principle trading partners for imports are Olvana, Persian Gulf states, South Asia, and the European Union. Nyumba's single port, Kismaayo, has limited pier space and lacks modern cargo transfer and customs processing. This can cause lengthy delays for import commodities to clear to their final destination. Humanitarian food aid is often delayed without payment of an expediting fee to a government official. Food aid is often diverted to the black market during these delays.

Military Exports/Imports

Nyumba is under an arms embargo by the United States due to the country’s continuing conflict and the resulting on-going humanitarian crisis. In spite of the embargo, the government was able buy $8 million of conventional weapons, down from $61 million for aircraft, armored vehicles, artillery, radar systems, missiles, small arms and ammunition five years ago. The declining economy caused the precipitous drop, with the country unable to maintain or replace many of the damaged systems. This is another area where North Torbia attempted to fill the gap, using a similar barter scheme.

North Torbian technological expertise and services as well as some petrochemicals are not officially tracked but are agreed compensation for oil shipments. North Torbian hackers live and work in Nyumba to provide training and operational skill for Nyumba's cyber activities.

Economic Diversity

Nyumba’s economy consists of limited sectors, including hydrocarbon, agriculture, and services sectors. Of these, the hydrocarbon sector is the largest income generator accounting for 57% of the GDP. It is also the main target for diversion and smuggling. Production of crude oil is the only portion of the sector currently active; exploration and development of natural gas is a major economic goal of the government. The abundance of oil resources is the country’s economic lifeline and also a major challenge.

Although oil exports and revenues are a lucrative source of national income, they make the country vulnerable to fluctuations and volatility in the international commodities market. Largely for that reason, Nyumba’s main goal in the economic arena is to diversify—strengthen other sectors in order to lessen the country’s dependence on oil. It accounts for more than half of the governments’ revenues and over 70 percent of its export earnings.

Meanwhile the agriculture sector employs 65 percent of the population with a seasonal surge to 70 percent during harvests. The sector contributes over 31 percent of Nyumba’s GDP. Markets for Nyumba’s agricultural products are limited to the Arab states. The sector is also vulnerable to the weather extremes in much of the country.

The services sector operates at a low level, providing only 6 percent of the GDP. Working with Olvana, the government hopes to significantly change the services sector standing with the construction and operation of a new shipping port at Lamu.

Energy Sector

As the mainstay of the country’s revenue production, the government leaders maintain direct control over oil production. Economic pressures are driving the government to seek partnerships that will expand oil production and export. The decision to authorize a large loan with Olvana is a key element of the expansion program. Additional exploration is underway to expand the base of the energy sector by developing additional resources such as natural gas.

Excepting one wind farm, Imported refined oil is the only fuel for power generation in Nyumba. Cities and urban areas are the primary users of electricity because of the limited number of power generating plants and distribution lines. Rural communities rely on individual generators with the majority of the population using charcoal for cooking. Production and sale of charcoal continues in spite of the United Nation ban.

Oil

The main income generating commodity for Nyumba; once the infrastructure projects are completed production is expected to jump 300%. Lamu’s critical feature is the deep-water natural harbor of Manda Bay, and the 460 km2 planned development on the mainland peninsula directly north of Lamu Island. It features rail and pipeline terminals connecting directly to a 30+ berth marine terminal. A refinery and power plant would occupy the northern tract adjacent to the port facility.

The pipeline will connect Lake Turkana oil fields to the deep-water port. While it represents an economic leap forward, the remote pipeline route is vulnerable to theft and smuggling. Potentially 30-40% of Nyumba's annual production, $750M at current prices, is at risk.

Natural Gas

Natural gas (NG) is not in commercial production but international consortiums are working with Nyumba to develop the discovered reserves. Initial natural gas exploration indicates there are significant fields along the Indian Ocean coast, and in territorial waters. Recent exploration discovered an additional 75 Trillion Cubic Feet (TCF) that can be economically exploited. This find compliments the proven recoverable land-based reserves of 6 tcf.

Agriculture

Nyumban agriculture employs 65 percent of the labor force full-time and an additional 5 percent part-time, producing 31% of the national GDP. The western region plays a very important role in this sector. Only 7.1% of Nyumba’s land is arable. Most farming takes place near Turkana and the western coastal regions along the Juba River; the rest is either pasture or desert scrub vegetation. Due to reasonable rainfall, most irrigation in the country occurs in the drier eastern region. Crops produced in Nyumba include bananas, sugar, sorghum, cow peas, sesame, maize, wheat, cassava, groundnuts, millet and beans. Sorghum, millet, cassava, maize, and wheat are exported, primarily to the Arab states. Despite the large agricultural economy, the country does not grow enough cereal grains to feed its populace and is often subjected to famines in times of drought. Climatic conditions are not optimal for agriculture due to prolonged periods of drought or seasonal heavy rains resulting in flooding.

Mining

The mining sector is idle due to the civil war and lack of investment. Continuing low-level conflict suspended most geological exploration. Despite this, the government is working to restart pre-war mining operations, offering large incentives to risk-tolerant partners.

The mining restart mainly focuses on uranium ore extraction from pit mines in the Amsas-Coriole-Afgoye (ACA) Block. Prior to the civil war, the known uranium reserves were 73,000 Metric Tons (MT) of 0.2% high grade U₃O₈ ore deposits. The ACA mineral exploration group, Da’an Coriole, estimates that the untapped reserves may be as high as 280,000 mt.

Teaming with an Olvanan investment firm and ACA exploration, the government provides forces for security. While uranium ore prices are generally in decline worldwide, Nyumba hopes to use its relationship with Olvana to sell ore at a higher price to North Torbia.

Manufacturing

Nyumba has no large scale manufacturing, with only low-level hand-labor type manufacturing of very basic items. Basic production using local resources supports local markets with no surplus for wider distribution and sale.

Steel

There is no steel production in Nyumba.

Automotives

There are no vehicle manufacturing operation in Nyumba nor is there any production of repair parts. Vehicle repairs are often accomplished by cannibalization, reworking similar parts, or using native ingenuity to replace the part altogether with an innovative solution. Small businesses, much like blacksmith shops, operating at the local level supply the vast majority of mechanical services. International humanitarian relief organizations and peacekeeping forces typically import needed vehicles and repair parts. Trucks, armored personnel carriers, or other vehicles that break down sit idle until the necessary repair parts can be shipped in from an international supplier.

Petrochemicals

Although recent exploration indicates that Nyumba is apparently rich in oil and natural gas there is insufficient development to create a domestic petrochemical industry.

Defense Industries/Dual Use

There are no legitimate defense industries in Nyumba. There are indicators of illegal groups adapting existing systems and resources to supply insurgent forces but nothing of significant volume.

Services

From the standpoint of Gross Domestic Product (GDP), services comprise the smallest sector of the national economy—accounting for 6 percent of GDP last year. The government is working to expand port services for the western Indian Ocean and worldwide shipping by developing the port at Lamu. Transshipment of Nyumbaan oil and international shipping services are expected to rapidly grow this segment of the economy once the port project is completed.

Banking and Finance

Public Finance

As a perpetually troubled state, Nyumba’s government enjoys little trust and confidence from not only the international community but also the country’s population. Public banking and finance are a strong point of contention over the growing divide between “haves” and “have-nots.” Manipulation of the banking system is a constant point of contention in the public with little trust of the country’s financial system. Nyumba’s leadership is undertaking a five year financial reform and modernization plan to gain control of inflation, restore creditworthiness and confidence in the financial structure of the country.

An almost total reliance on oil revenues causes the economy to fluctuate based on changing worldwide prices. Seeking diversification to buffer the effects of oil price swings, Nyumba is working to improve the tax base, diversify into other economic sectors, and restore confidence in the economy. Fraud and corrupt practices make it very difficult to regain that confidence in short order.

Taxation

Tax revenue, both corporate and individual account for only 6.5% of the GDP. Through reforms of the tax formula and collection measure the country’s goal is to increase revenue by 5% for each of the next 5 years. If all reforms are successful the individual income tax should increase from .1% of the GDP to .3% of the GDP. Reforms of the corporate tax structure should see revenue rise from .4% to 1.5% of GDP over the same period. The challenge is to levy new taxes at a rate low enough to prevent increased smuggling of exported/imported commodities or increased bribery of customs officials to undervalue cargoes. Both individual and corporate revised tax rates will rely on newly issued taxpayer identification numbers.

Reforms of the tax code and administration are the main tenants of Nyumba’s efforts to improve tax revenue. Increased taxes on imported goods are problematic as the majority of the population requires those commodities for day-to-day subsistence. Initially, the government will impose a graduated tax on luxury items and goods that are injurious to public health or the environment. The main issue is the increased tax on imported Khat used by the upper economic echelons. Domestically produced Khat is ubiquitous throughout the country but imported Khat is supposedly purer and more desirable. The government seeks to gain additional revenue, causing Khat users to switch to domestically produced product, and focus on a non-essential commodity.

Corporate income tax will also be expanded to focus on high income taxpayers. Including non-governmental organizations (NGOs) in the high income category leverages the humanitarian expenditures Nyumba receives. The new rates treat taxpayers by their revenue potential.

Currency Reserves

Nyumba holds no currency reserves while continuing to operate with a large budget deficit. Financial confidence in the country is very poor and financial risks are high causing the government to borrow money at a high rate.

Currency, the Nyumba people’s pound (NPP), is not recognized or traded on world exchange markets. There is no established exchange rate with world currencies but an unofficial rate exists with the US dollar. All transactions are conducted using this informal exchange rate using cash for domestic trade. Lack of confidence in the limited number of commercial banks causes the public to hold large sums of cash to pay for transactions large and small. The cash economy continues to provide a beneficial environment for large-scale money laundering and counterfeiting.

Private Banking

There are a three commercial banks with limited operations in the country, all located in the capital. Widespread banking services are hampered by the lack of an effective banking sector with a well-defined financial framework. Lack of skill staff, adequate security, insurance companies, and a pervasive legal framework, all contribute to the country continuing to operate with the informal financial system. Little public trust exists for the commercial banks in Nyumba causing the economy to remain cash-based.

Banking System

The Central Bank of Nyumba, while not a state-owned bank, serves as the hub of the national banking system. At the direction of the government it acts as the fiscal agent of the treasury, implements financial policy related to currency controls, transaction controls with commercial banks, and implements reform programs.

Stock/Capital

The country has no national stock exchange. Several attempts were made by the government in recent years but insufficient expertise caused each initiative to end in failure. Accumulation of capital is not tied to currency or stocks in Nyumba. Individuals accumulate capital in the form of assets such as camel herds, fishing boats, or other physical items. Typically, those with accumulated wealth do not invest in outward displays such as big homes or expensive cars because these will mark them as a target.

Informal Finance

As with a number of other African countries, Nyumba has a sizable informal sector, due to an oversize labor pool that lacks the specialized skills demanded by a modernizing economy. Hawala informal money transfers are generally in use by the Arab population. The most ubiquitous money service used by the population is a mobile phone-based money transfer service, known as M-Pay, available on all cell phone carriers. With limited mobile access for much of the population there are access vendors that supply the phone and users install their own SIM chip to conduct transactions. Nyumbaan diaspora and insurgents use the system to conduct transfer of billions of dollars. Large transactions are possible due to few laws and non-existent policing of the electronic transfers.

Employment Status

Until new infrastructure comes on line and there is a decrease in the risk environment there is little expectation of improvement in the Nyumbaan labor market. Continuing low level conflicts drive away foreign investors with low risk tolerance. Even organizations focused on improving the economies of poor and struggling countries find Nyumba daunting. The complexity of business dealings also make it very difficult for new business to start in the Nyumbaan marketplace. The government has little expertise in how to foster a positive business environment to attract new businesses.

Labor Market

Foreign investment projects from Olvana or North Torbia supply the labor force from the funding country. This foreign labor force spans corporate-level directors all the way to unskilled laborers. Few Nyumbaans are employed as part of the development projects and those that are typically receive a substandard wage that is 50% lower than the prevailing average. Nyumbaan workers benefit little from large foreign projects as a result.

Employment and Unemployment

Unemployment is high due to a large portion of the workforce employed in non-wage agriculture and that there are few in the labor population that have the time or resources available to seek work. The few with excess labor available are often children that the families seek to find employment to bring in additional income for the family group. Children are regularly hired out to work in mining, agriculture, or illicit activities to produce income.

Official unemployment persists at 26% or higher of the workforce; youth unemployment is higher 68%. The unemployment rate dropped from approximately 16% in 2001 to 10.2% in 2006, but with persistent droughts and low oil prices the rate rose back to the 26% level. Limited job growth is perpetuated by the poor infrastructure to support new business. Public sector job growth has been hampered by corruption and nepotism that restricts labor movement between agencies or locations. The government expects some job growth from the Olvanan port project as the result of increased demand for support services.

Illegal Economic Activity

Illegal economic activity in Nyumba is a very relative concept and highly complex. Nyumbaans conduct financial and business activities based on their allegiance to their family, tribe, and business interests. Depending on the motive behind a business transaction Nyumbaans may be competitors for one transaction but partners on others. In all dealings, Nyumbaans are not locked into supporting any particular group or ideology but rather treat each business transaction based on self-interest and the best long-term outcome.

Nyumba endures a broad spectrum of illegal economic activity, some of which is grounded in the chronic poverty and famine that has gripped the rural countryside for decades. A composite of the illegal activities found in Nyumba is estimated to approach the GDP of $2.9 billion in value.

• Charcoal production in spite of the international ban on production and shipment.
• Smuggling has a long history in Nyumba and is an accepted element of the economic culture. Smuggling of contraband using long established routes is very efficient and an effective mode of moving goods and people. Typically smugglers establish informal business arrangements with local police and security forces to allow free passage of caravans both into and out of the country. Smugglers move people, weapons, drugs, poached animal commodities, oil, high-value minerals and gems, and any other commodity that has high value and demand.
• Human trafficking is a thriving industry that preys on the displaced populations from not only Nyumba but also from surrounding countries. A well historic smuggling route to Europe transits Nyumba and many refugees fall victim on their journey. Smugglers agree to assist refugees with travel to an imagined safe destination only to find themselves sold into slavery in illegal mining, agricultural, or sex industries. Human trafficking is not limited to adults and estimates are that Nyumba has as many as 9,000 missing children. Children as young as 4 years of age are forced into mining, agriculture, sex slavery, or as soldiers in the various groups involved in the continuing conflict.
• Kidnapping is a low level enterprise that is most commonly practiced between tribes in conflict. Important tribal leaders are targeted for kidnapping and are released in return for either a monetary ransom or for concessions.
• The main drugs produced in Nyumba are cannabis and khat but all forms of illegal narcotics transit the country through the smuggling routes headed into Europe. Nyumba is the largest producer of the two drugs in Africa. The drug trade in the country exceeded $1 billion last year with the largest use among the young population between 18 and 22.
• The arms embargo on Nyumba created a lucrative industry to supply the warring factions with weapons and munitions. Most of the arms shipments are limited to small arms, ammunition, explosives, and anti-aircraft (AA) guns.
• Animal poaching of protected/endangered species
• The government includes theft of oil and excavation of valuable mineral ores as elements of illegal mining in Nyumba.
• Piracy continues at a low level with many fishermen alternating between piracy and illegal fishing.
• E-crime Nyumbaan criminal elements are expanding into e-criminal activities with a particular focus on the banking industry in Africa. Many financial networks in countries surrounding Nyumba do not have adequate network safeguards for their systems.

Summary

Nyumba's economic profile does not easily conform to Western standards and expectations. The country has a thriving barter and informal business sector that uses the formal financial system only when necessary. The population is poor by world standards but money is plentiful for necessary transactions. Families and tribes band together to pool their resources when a critical need occurs. This includes a large amount of remittances by the diaspora from around the world. The continuing conflicts in Nyumba created a large diaspora that reliably returns part of their earnings to their family remaining in Nyumba.

The government, by and large, is corrupt and ineffective. The leadership is putting new economic programs in place in an effort to remain in power. These programs seek out international investment from Olvana, North Torbia, and other countries in efforts to improve infrastructure and expand markets for Nyumbaan resources.