In today’s world, marked by fierce competition and dynamic global trends, Somalia’s position on the global stage remains enigmatic. With an abundance of natural resources such as natural gas and minerals, strategic geographical locations, a favorable climate, a rich cultural heritage, and a population known for its entrepreneurial spirit, Somalia possesses a treasure trove of untapped potential. Despite these advantages, the nation lags behind the race for development, finding itself at the bottom of the list of global competitiveness. According to the Global Competitiveness Report 2020 by the World Economic Forum, Somalia ranked 153rd among 153 countries in terms of global competitiveness.This critical situation calls for transformative change to utilize Somalia’s inherent strengths and drive it towards a prosperous future, capitalizing on its resources, embracing technological advancements, and fostering innovation. This article examines how transformative development can reshape the country’s economic landscape, overcome challenges, and propel Somalia towards sustainable growth and prosperity.
Challenges and Opportunities in Somalia’s development.
Over three decades, Somalia has faced significant obstacles that have hindered its progress and impeded its economic growth. Political instability and protracted conflicts have made the nation fragile, impacting governance structures, public services, and economic stability. The precarious political landscape of Somalia is characterized by recurring leadership changes and persistent power struggles. According to the Fragile States Index 2023 of the Fund for Peace, Somalia is ranked as the world’s most fragile state. This lack of stable governance undermines policy implementation and disrupts vital developmental efforts in Somalia. Rampant corruption corrodes institutions, drains resources from crucial development projects, and deepen existing inequalities. The nation’s institutions, both government and non-government, wrestle with structural frailties that impede effective governance and service delivery. The lack of robust legal and regulatory frameworks has hampered investor confidence and discouraged foreign direct investment.
Examining the complex socioeconomic structure of Somalia reveals a convergence of multifaceted challenges that connect and shape the way Somalia grows and changes over time. The country’s high poverty rate underscores the socio-economic divide that cripples the nation. This alarming level of poverty is further exacerbated by glaring income inequality, maintain an environment in which a significant portion of the population lacks access to even fundamental necessities. Somalia’s healthcare system grapples with disparities in quality and access, resulting in high maternal and child mortality rates. Preventable diseases and limited healthcare infrastructure contribute to this challenge, diminishing life expectancy and perpetuating a cycle of ill health and economic fragility. Somalia is ranked sixth in the world, with a maternal mortality rate (MMR) of 692 per 100,000 live births (Somalia Health Demographic Survey report, 2020). Most of these deaths were avoidable. Many women experience serious issues owing to pregnancy or child-related illnesses.
Unemployment and under-employment, particularly among young people, present an image of economic stagnation. Lack of long-term job opportunities creates economic hardship and societal unrest, further entrenching a cycle of socioeconomic issues. An increasing youth population is confronted with a serious lack of employment opportunities. Over two-thirds of the Somali population is below the age of 30 years. Somalia’s youth are critical to the country’s economic revival, yet they face high poverty rates, a weak education system, and limited employment opportunities (World Bank, 2022). Gender disparities persist, with women being hindered by limited access to education, healthcare, and employment due to entrenched cultural norms. According to a recent report by the UNDP, gender equality and women’s empowerment are among the most pressing issues confronting Somalia. The country ranks fourth bottom on the UNDP Gender disparity Index, with a score of 0.776 (the maximum value of 1 implies total disparity).
The informal economy dominates, offering livelihoods, but also perpetuating informal working conditions, low wages, and a lack of job security. Despite being a cornerstone of the economy, the agricultural sector faces vulnerabilities from climate impact and outdated techniques, undermining food security and economic growth. Moreover, a deficiency in infrastructure spanning transportation, energy, and communication networks serves as a bottleneck to economic expansion, hindering connectivity, trade, and investment opportunities.
These devastating consequences have affected every facet of society and standard of living in the country. As the world hurtles the fifth generation of economic development, driven by technology and innovation, an urgent question arises: Is this opportune moment for transformative change to sweep across Somalia, propelling it towards unprecedented economic success? Within this question is the potential to harness Somalia’s inherent strengths and forge a path towards a prosperous future, one that harnesses its resources, embraces technological advancements, and unlocks the power of innovation. The Transformative Development Approach: Transformative development is an ambitious and comprehensive approach to bring about profound and lasting changes across multiple sectors of the economy and society. Unlike incremental improvements, transformative development addresses the root causes and barriers to sustainable development, paving the way for transformative change.
Somalia’s New National Transformation Plan (NTP) 2025–2029: Somalia’s newly launched National Transformation Plan (NTP) 2025–2029 marks a pivotal shift from traditional development strategies to a bold, results-driven framework aimed at catalyzing national renewal. Replacing the previous National Development Plans, the NTP aligns with Somalia’s Centennial Vision 2060 and the African Union’s Agenda 2063, reflecting a commitment to long-term, inclusive growth. Structured around four strategic pillars—Transformational Governance, Sustainable Economic Transformation, Social and Human Capital Transformation, and Environmental and Climate Resilience—the plan aims to address systemic challenges, promote good governance, and foster economic diversification. Developed through extensive consultations with federal member states, civil society, private sector stakeholders, and international partners, the NTP embodies a participatory approach to national planning, ensuring that it reflects the aspirations and needs of the Somali people.
Understanding Transformative Development
Transformative development is an ambitious and comprehensive approach to bring about profound and lasting changes across multiple sectors of the economy and society. Unlike incremental improvements, transformative development addresses the root causes and barriers to sustainable development, paving the way for transformative change. Somalia stands at a critical juncture and is poised to embark on a new era in development. In the preceding discussion, I share some transformative suggestions that hold the promise of paving the way for Somalia’s resurgence and prosperity. These transformative measures encompass crucial areas that demand concerted effort and collective commitment from the stakeholders involved. By implementing these suggestions, Somalia can chart a path towards sustainable development, resilient growth, and a promising future for its people.
1: Prioritizing Infrastructure Development
At the forefront of transformative development, there is an urgent need to address the infrastructure deficits plaguing the country. Roads, ports, airports, power grids, and telecommunication networks have suffered from neglect and destruction. By prioritizing infrastructure development, Somalia can enhance connectivity, facilitate trade, and attract investment. Improved infrastructure serves as a catalyst, unlocking the untapped potential of the economy and opening doors to new opportunities.
2: Investing in Human Capital
Investing in human capital is vital to successful transformative development. According to UNICEF, the primary school enrollment rate in Somalia is one of the lowest in the world, with only approximately 30% of the children attending school. The majority of the population lacks access to basic healthcare services because of limited infrastructure and resources. Accessible and high-quality education, healthcare, and skill training programs are essential to empower individuals, reduce poverty, and cultivate a skilled workforce. By nurturing human potential, Somalia can build a knowledgeable and capable workforce that can drive innovation, productivity, and economic growth.
3: Economic Diversification
Economic diversification is an important aspect of the transformative development. Investment in the industrial sector could contribute to inclusive growth and poverty reduction in Somalia. As of 2022, the country’s poverty rate is staggering at 73% (World Bank 2022). A vibrant industrial sector can generate income opportunities, reduce income disparities, and improve the overall standard of living for the population.Somalia’s heavy reliance on agriculture and a few primary industries calls for a shift towards a more diversified economy. By supporting sectors such as agriculture, renewable energy, and telecommunications, Somalia can stimulate economic growth, create job opportunities, and reduce its vulnerability to external shocks. Economic diversification fosters resilience and ensures long-term sustainable development in the long run.
4: Strengthening Governance and Institutions
To successfully embark on this transformative journey, strengthening governance and institutional capacities is paramount. Transparent and accountable institutions are fundamental to effective resource management, ensuring a conducive business environment, and promoting an equitable distribution of benefits. Building trust, attracting investment, and establishing the rule of law are essential for Somalia to achieve lasting economic successes. Unfortunately, Somalia has been grappling with high levels of corruption, significantly hindering its development. According to the Corruption Perceptions Index 2022 by Transparency International, Somalia ranks among the most corrupt countries in the world, scoring only 12 out of 100. This indicates the urgent need for anti-corruption measures and effective governance to address this pressing issue. By combating corruption and ensuring transparent governance, Somalia could foster an environment conducive to sustainable economic growth and prosperity. Strong leadership and governance are indispensable in the fight against corruption and setting a course for transformative development. Establishing an accountability system in which public officials are held responsible for their actions will build confidence among investors and international partners. Strengthening institutional capacities, such as law enforcement and judicial systems, is crucial for upholding the rule of law and promoting a fair and just society.
In conclusion, transformative development has the potential to unlock Somalia’s economic prowess and usher in an era of prosperity and stability. Addressing infrastructure deficits, investing in human capital, promoting economic diversification, and strengthening governance structures will set Somalia on a new path towards success. Collaboration between government agencies, international organizations, civil society, and the private sector is pivotal for materializing this transformative vision. Together, we can propel Somalia into a new frontier of economic success and stability where people’s dreams become tangible realities.
Abdikarim A Mohamed, Researcher
