Economic growth and job creation
Somalia is still emerging from the effects of a long civil war, political-social conflicts and extended drought. Despite this, the economy, mainly based on traditional primary productive sectors, is growing. Through the National Development Plan, the New Partnership Agreement and the Economic Recovery Plan, the Federal Government of Somalia (FGS) has set out an ambitious agenda of reforms needed to support the economy.
Somalia has diverse livelihood systems: pastoralists, agro-pastoralists, fishing and coastal communities. Agriculture provides 60% of the country's GDP, 80% of its employment and 90% of its exports. The livestock and crop sectors remain the main sources of current economic activity and employment.
Live animal export and cereals are critical to consolidate and improve the quality of the high number of existing jobs in some regions. Meat production and hide and skin also have some potential to create jobs along the chain if investments are made for small-medium industries in urban areas with big demand. There is a high potential to increase cereal productivity with Good Agricultural Practices (GAP), better inputs and post-harvest management. Horticulture (mainly fruit and vegetables) has the biggest potential to create new jobs especially to supply urban areas. Banana production potential remains large, as Somalia used to be the largest banana exporter in East Africa before the start of the civil war.
With the longest coastline in Africa (3,330 km) and a large Economic Exclusive Zone (EEZ) the fishing industry has a high potential for growth and job creation in Somalia. However, fishery remains artisanal, virtually unmanaged, and subject to commercial exploitation by foreign and mostly illegal fleets.
The lifting of state constraints on private enterprise led to improved economic performance and to the provision by the private sector of many services previously provided inefficiently by the public sector (telecommunications, air transport, money transfer, and, though inadequately so, urban water, electricity, and social services). Contributing to the improved economic performance is the large emigration of skilled Somalis. The booming informal trade with neighbouring countries provided a new source of income.