From Turmoil to Trade
With bold reforms, untapped potential, and sectors opening up, Somalia offers real opportunities for forward-looking investors.
Since the collapse of its central government in 1991, Somalia has endured decades of civil war, lawlessness, political fragmentation, and economic shutdown. Millions were displaced, institutions crumbled, and investment was unimaginable. Citizens faced daily insecurity and hardship.
But a remarkable revival is underway.
In 2012, the country held its first presidential election since the outbreak of the civil war. The establishment of federal member states and institutions, coupled with the 2015 foreign investment law and IMF-backed reforms, has laid the foundation for a more stable business environment. Today, Somalia’s GDP grows at 3–4% annually, remittances exceed $2 billion, and the country boasts one of Africa’s fastest-growing mobile money systems and a functioning stock exchange — driving commerce and connectivity.
To accelerate this momentum, the Government of Somalia launched the National Transformation Plan (2025–2029), recognizing the private sector as a key driver of economic growth and long-term sustainable development. In partnership with the Somali Government at federal and federal member state levels, as well as the international community, the UNDP is supporting the implementation of this ambitious plan.
A landmark initiative—Transformational Governance — was signed by UNDP and the Government of Somalia, with support from the Government of Sweden. This project aims to strengthen institutions, modernize the public sector, advance digital reforms, and unlock private-sector-led growth. It’s a vital step toward attracting investment and expanding opportunities in agriculture, energy, ICT, financial services, and beyond.
At the Global Somali Entrepreneurship Forum (GSEF2025), held in Nairobi, UNDP hosted a side event titled “Enhancing Business Environment and Opportunities in Somalia.” The event witnessed a wave of optimism swept through the packed venue as industry leaders, innovators, policymakers, and investors came together to reimagine Somalia’s future. Once viewed solely through a lens of fragility, Somalia is now rising as a vibrant, opportunity-rich market.
“Somalia is no longer a question mark on the map, it’s a rising star,” said Jibril Ibrahim Abdulle, Somalia’s Ambassador to Kenya. “The energy, talent, and determination in this gathering today is a proof that Somali enterprise is not just surviving, it is reshaping economies, rebuilding communities, and redefining our future. To the world, I say: come and invest, come and partner. Somalia is open for business, and the best is yet to come.”
He continued, “Somalia is standing tall again, its government stronger, markets opening up, and people eager to forge a better future. Investors, this is your moment: bring your capital, ideas, and partnerships to fuel inclusive growth, jobs, and sustainable transformation in the Horn of Africa. Join us as Somalia rebuilds and redefines the future of investment and development.”
“Local businesses and startups are the backbone of Somalia’s future,” said Lionel Laurens, UNDP Somalia Resident Representative at GSEF2025. MSMEs not only drive jobs and innovation, they help prevent conflict, reduce poverty, and build peace from the ground up. That’s why UNDP Somalia puts them at the center of its economic programming.
At a UNDP-hosted side event on enhancing business environment and opportunities in Somalia: panelists underscored the transformative role of the private sector in shaping Somalia’s economic resurgence.
Prof. Eise M. Halane, Deputy Director of the Somali Chamber of Commerce and Industry, emphasized, “Somalia’s business environment is at a turning point. With strong regulatory frameworks and institutional capacity, we can scale local enterprises and attract global investors.”
Bahja Shuriye, Director of SIMAD iLab and a leading woman entrepreneur, added, “Our startups and SMEs in Somalia are the engines of growth and peace. When youth and women are included in economic development, communities thrive.”
“Financial inclusion in Somalia means more than just access to banks, it’s about building trust, the right infrastructure, and financial solutions that truly reflect the needs of Somali people,” said Hassan Musa Osman, CEO of the Somali Stock Exchange, highlighting the importance of collaboration between the government, the private sector, and communities.
“Somalia’s growing use of mobile payments creates a powerful opportunity to expand access to credit, savings, and secure financial services especially for small businesses and people outside the formal banking system,” said Phyllis Kamau, VISA Inc. representative.
UNDP remains deeply committed to supporting Somalia’s journey towards sustainable development by fostering private sector engagement, aligning investments with the Sustainable Development Goals (SDGs), and creating inclusive business models. Through innovation, climate-focused partnerships, institutional reform, and capacity building to shape a more equitable and prosperous future.
