A new report released by the World Bank yesterday evening has emphasized the critical importance of fostering a vibrant and inclusive private sector in Somalia to achieve sustainable economic growth, job creation, and resilience against fragility.
According to the Somalia Country Private Sector Diagnostic (CPSD) report, concerted efforts are needed to address policy and regulatory gaps, enhance infrastructure, and unlock investment opportunities across key sectors. Despite the private sector’s remarkable resilience, productive tradable sectors remain subdued, and foreign direct investment remains limited.
The report identifies opportunities for growth in the energy and finance sectors, including upgrading on-grid energy infrastructure, promoting renewable technologies, investing in digital financial services, and expanding access to microfinance.
World Bank Country Manager for Somalia Kristina Svensson noted that Somalia can develop reforms to enable effective and equitable formal institutions and regulatory frameworks, facilitating private sector-led economic transformation.
The report’s findings underscore the private sector’s crucial role in Somalia’s economic development, accounting for an estimated 95% of total jobs created. Continued policy reforms are essential to support private sector participation in the country’s journey toward sustainable and lasting economic development.
IFC’s Director for North Africa and the Horn of Africa, Cheick-Oumar Sylla, emphasized the importance of the private sector in unlocking Somalia’s full potential.
The report’s recommendations aim to support Somalia’s transition from fragility and generate more inclusive economic dividends for its people.
