The objective of the Banana Sector Study for Somalia as is to assess the banana industry in the context of irrigated crop production. Based on the assessment, a strategy to improve banana production to an internationally competitive level will be developed. In case this is not sustainable, a strategy for diversification of irrigated crop production will be developed. The study is carried out in two phases. Phase I was implemented between February 13th and March 3rd, 2003 by H. Hack, and H. McKilligan. The result of Phase I is presented in the Preliminary Assessment and Strategic Options Report(this report), providing the baseline for the decision on the focus of the support programme under the Special Framework of Assistance for Traditional ACP Suppliers of Banana in the Lower Shabelle region. Phase II is scheduled for May/June 2003.