Somalia

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Somalia - In Short.

Overview of Somalia

Humans with ancestral links to ethnic Somalis inhabited the northern Somalia Peninsula beginning as early as 5000 BCE and gradually expanded from the coast to occupy all of present day Somalia, Djibouti, the Ogaden region of Ethiopia, and parts of northern Kenya. By 2480 BCE, these humans were engaged in trade with Egypt, and between 800 AD and 1100 AD, immigrant Muslim Arabs and Persians set up coastal trading posts along the Gulf of Aden and the Indian Ocean, solidifying Somalia’s close trading relationship with the Arab Peninsula. In the late 19th century, Britain and Italy established colonies in the Somali Peninsula, where they remained until 1960, when British Somaliland gained independence and joined with Somalia Italiana to form the Republic of Somalia. The country functioned as a parliamentary democracy until 1969, when General Mohamed SIAD Barre took control in a coup, beginning a 22-year authoritarian socialist dictatorship. In an effort to centralize power, SIAD called for the eradication of the clan, the key cultural and social organizing principle in Somali society. Resistance to SIAD’s socialist leadership, which was causing a rapid deterioration of the country, prompted allied clan militias to overthrow SIAD in early 1991, resulting in state collapse. Subsequent fighting between rival clans for resources and territory overwhelmed the country, resulting in a manmade famine and prompting international intervention. Beginning in 1993, the United Nations spearheaded a humanitarian mission supported by international forces, but the international community largely withdrew by 1995 following Black Hawk Down – an incident in which two American Sikorsky UH-60 Black Hawk helicopters were shot down in Mogadishu, killing 21 international forces and wounding 82.International peace conferences in the 2000s resulted in a number of transitional governments that operated outside of Somalia. Left largely to themselves, Somalis in the country established alternative governance structures; some areas formed their own administrations, such as Somaliland and Puntland, while others developed localized institutions. Many local populations turned to using sharia courts, an Islamic judicial system that implements religious law. Several of these courts came together in 2006 to form the Islamic Courts Union (ICU). The ICU established order in many areas of central and southern Somalia, including Mogadishu, but was forced out when Ethiopia intervened militarily in December 2006 on behalf of the Somali Transitional Federal Government (TFG). While the TFG settled in the capital, the ICU fled to rural areas or from Somalia altogether, reemerging less than a year later as the Islamic insurgent and terrorist movement al-Shabaab, which is still active today. In January 2007, the African Union (AU) established the AU Mission in Somalia (AMISOM) peacekeeping force, which allowed Ethiopia to withdraw its forces, took over security responsibility for the country, and gave the TFG space to develop Somalia’s new government. By 2012, Somali powerbrokers agreed on a provisional constitution with a loose federal structure and established the central government in Mogadishu. Since then, four interim regional administrations have been established and there have been two presidential elections. However, significant and fundamental governance and security problems remain..
Value
Country Full Name
Somalia
Country Code
SOM
Region
Sub-Saharan Africa
Income Group
Low income
Currency Unit
GDP
6965285325
Population
15893219
Land Area
627340
Net National Income Per Capita
240.3233223
GDP per Capita (PPP)
1245.743885

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Somalia - Economic

Economy of Somalia

Despite the lack of effective national governance, Somalia maintains an informal economy largely based on livestock, remittance/money transfer companies, and telecommunications. Somalia’s government lacks the ability to collect domestic revenue and external debt – mostly in arrears – was estimated at about 77% of GDP in 2017.Agriculture is the most important sector, with livestock normally accounting for about 40% of GDP and more than 50% of export earnings. Nomads and semi-pastoralists, who are dependent upon livestock for their livelihood, make up a large portion of the population. Economic activity is estimated to have increased by 2.4% in 2017 because of growth in the agriculture, construction and telecommunications sector. Somalia’s small industrial sector, based on the processing of agricultural products, has largely been looted and the machinery sold as scrap metal.In recent years, Somalia’s capital city, Mogadishu, has witnessed the development of the city’s first gas stations, supermarkets, and airline flights to Turkey since the collapse of central authority in 1991. Mogadishu’s main market offers a variety of goods from food to electronic gadgets. Hotels continue to operate and are supported with private-security militias. Formalized economic growth has yet to expand outside of Mogadishu and a few regional capitals, and within the city, security concerns dominate business. Telecommunication firms provide wireless services in most major cities and offer the lowest international call rates on the continent. In the absence of a formal banking sector, money transfer/remittance services have sprouted throughout the country, handling up to $1.6 billion in remittances annually, although international concerns over the money transfers into Somalia continues to threaten these services’ ability to operate in Western nations. In 2017, Somalia elected a new president and collected a record amount of foreign aid and investment, a positive sign for economic recovery.

Unemployment Rate

Inflation Rate

Somalia - GDP Composition

GDP Composiiton & Value Added of Somalia

Last Updated: Jan, 2021, Updated For 2020.

Somalia - GDP, Value Added

Demographics of Somalia

distribution varies greatly throughout the country; least densely populated areas are in the northeast and central regions, as well as areas along the Kenyan border; most populated areas are in and around the cities of Mogadishu, Marka, Boorama, Hargeysa, and Baidoa as shown on this population distribution map
Geographic Location

Eastern Africa, bordering the Gulf of Aden and the Indian Ocean, east of Ethiopia

Races

Somali 85%, Bantu and other non-Somali 15% (including 30,000 Arabs)

Languages

Somali (official, according to the 2012 Transitional Federal Charter), Arabic (official, according to the 2012 Transitional Federal Charter), Italian, Englishmajor-language

Religion

Sunni Muslim (Islam) (official, according to the 2012 Transitional Federal Charter)

Dependency & Expectancy of Somalia

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Somalia - Social Media Briefing

Somalia - Social Media & Social Commerce

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Politics & Policies of Somalia

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ACP, AfDB, AFESD, AMF, AU, CAEU (candidate), FAO, G-77, IBRD, ICAO, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IGAD, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ITSO, ITU, LAS, NAM, OIC, OPCW, OPCW (signatory), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UPU, WFTU (NGOs), WHO, WIPO, WMO

Import of Somalia

Export of Somalia

Import Destination

Export Destination