Somali Institute Of Economic Policy Analysis -Siepra

📢 Formal Announcement– State of the Somalia Economy Report 2025 is published.

SIEPRA Releases Landmark 2025 State of the Somalia Economy Report
New analysis highlights Somalia’s economic resilience, structural challenges, and emerging opportunities amid major political-economy shifts.

The Somali Institute for Economic Policy Research and Analysis (SIEPRA) today released its flagship publication, the State of the Somalia Economy Report 2025, offering the most comprehensive and data-driven assessment to date of Somalia’s macroeconomic performance, fiscal landscape, and political-economy realities.

The report, titled “Somalia’s Contemporary Political Economy: Challenges and Opportunities,” provides a detailed examination of the country’s economic trajectory as it enters a pivotal phase following the completion of HIPC debt relief and ongoing institutional reforms.

“Somalia stands at a defining moment in its economic history,” said Prof. Abdihakim Abdullahi Abdi (Talyani), Executive Director of SIEPRA. “Our 2025 report highlights both the resilience of the Somali people and the urgent reforms needed to build a more stable, inclusive, and sovereign economic future. This publication is a call to action for policymakers, development partners, and the private sector to align behind a shared economic vision.”
🔗 Access the full report for detailed analysis and policy recommendations here the link bellow https://1drv.ms/w/c/17f57816a400764e/EVc6kakOVoJPuzoqlwzu3QQB3QojfXpFPD1-WSypfLkYGw?e=lXZvwC
Hon Mohamud Abdirahman Beenebeene

Machadka Soomaaliyeed ee Cilmi-baarista Siyaasadda Dhaqaalaha (SIEPRA Institute) wuxuu ku dhawaaqayaa soo saarista Warbixinta Dhaqaalaha Soomaaliya ee 2025 (State of Somalia Economy 2025), taas oo bixisa daraasaat dhamaystiran oo xog ku saleysan oo ku saabsan:
-xaaladda guud ee dhaqaalaha (Macroeconomics of Somalia),
-koboca dhaqaale,( Inclusive Economic Growth of Somalia) iyo -siyaasadda dhaqaalaha (political Economy) ee Dalka Soomaaliya.
Warbixintu waxay iftiiminaysaa caqabadaha ka jira horumarinta Dahqaalaha Soomaaliya, iyo- fursadaha soo ifbaxaya, -xoojinta hufnaanta maamul-dhaqaaleedka iyo horumar waara sida loo gaari karo.

Cid walba ee danaynaysa dhaqaalaha Soomaaliya waxaa lagu dhiirrigelinayaa inay akhriyaan buugga warbixnta marxalada dhaqaalaha Dalka Soomaaliya ee Sanadka 2025 oo dhan si ay u helaan falanqayn qoto dheer iyo talooyin siyaasadeed oo dhammaystiran. Warbinta waxaad ka heli kartaa Link gaan hoos taabo.

Wasaaradda Beeraha Iyo Waraabka JFS SBC Somali TV Hon Mohamud Abdirahman Beenebeene Committee on Budget and Finance

SIEPRA focuses on research and analysis of
- Macroeconomics, public financial management (PFM)
-Trade, agriculture, climate change, social sector policies, and the geoeconomics of Somalia.

Through rigorous analysis and policy dialogue, SIEPRA strengthens national decision-making and enhances Somalia’s economic competitiveness and resilience.

The Somali Institute for Economic Policy Research and Analysis (SIEPRA) is an independent, evidence-based economic policy think tank dedicated to producing high-quality research that informs Somalia’s economic governance and development agenda.

SIEPRA focuses on macroeconomics, public financial management (PFM), trade, agriculture, climate change, social sector policies, and the geoeconomics of Somalia. Through rigorous analysis and policy dialogue, SIEPRA strengthens national decision-making and enhances Somalia’s economic competitiveness and resilience.

East Africa community economies by GDP size. Kenya 🇰🇪 is the biggest economy with $ 136 billion GDP, while South Sudan 🇸🇸 is the smaller economy with 5 billion dollars per year.
The East Africa Community has huge economy inequality. How can the economic disparities in the EAC be reduced?

The TEN biggest economies in Africa by GDP in 2025.

Talooyin (Policy Recommednation ) kasoo baxay Daraasatkii aay SIEPRA soo saartay. Talooyinkaan Waxaay Gaareen Wasaarada Wasaaradda Beeraha Iyo Waraabka JFS .
Policy Recommendations

I. Enhance Security and Governance: Strengthen government presence and authority in key farming areas to restore stability and enable development.

II. Reform Taxation. Remove the illegal taxation check-points and Streamline regulate taxation to encourage investment and reduce burdens on farmers.

III. Invest in Infrastructure: Prioritize building rural roads, cold storage facilities, and modernized port handling capacities.

IV. Support Agro-Processing: Provide incentives for private sector investment in processing industries for dairy, meat, and fruits.

V. Promote Sustainable Practices: Introduce climate-smart agriculture and support smallholder farmers in adopting resilient farming techniques.

VI. Expand Access to Credit: Facilitate loans and financial services to help farmers invest in improved tools and technologies.

VII. Develop Export Infrastructure: Establish veterinary certification systems and quarantine facilities to meet international standards for livestock exports.

VIII. Strengthen Regional Trade: Leverage partnerships with neighboring countries and regional blocs to access new markets.

Machadka Daraasaadka Dhaqaalaha Dalka Soomaaliya ayaa cilmi baaris kooban (Policy Breif) kasoo saaray Dib-udhsika waxa soosaarka ( Beeraha iyo Xoolaha ) Dalka Soomaaliya iyo Caqabadaha iyo Fursadaha ka jira Soomaaliya.
Talyooyin Wax ku'ool ah ee ku socda Wasaaradda Beeraha Iyo Waraabka JFS ayaa kasoo baxay Daraasaatkaan

Policy Brief

Written by Prof. Abdihakim Abdullahi Abdi
The Chairman and the founder of SIEPRA

Title: Rebuilding Somalia’s Agriculture and Livestock Sectors: Challenges and Pathways Forward

Executive Summary

Agriculture and livestock form the backbone of Somalia’s economy, providing livelihoods for over 60% of the population and contributing more than 60% of GDP. However, these sectors face severe challenges, including climate change, insecurity, weak governance, and inadequate infrastructure. Governance failures in key agricultural areas, burdensome taxation, and climatic shocks exacerbate food insecurity and impede growth.

Despite these obstacles, opportunities exist in value addition, export trade, and food security. Addressing these challenges with coordinated policies, investments in infrastructure, and international collaboration can revitalize these sectors, enhance trade balances, and improve food security. This brief explores these issues and offers recommendations to strengthen Somalia's agriculture and livestock industries.

1. Introduction

Somalia's agriculture and livestock sectors are critical to its economy, yet they are plagued by systemic issues. Key challenges include:
I. Environmental vulnerability: Reliance on rain-fed farming and frequent droughts and floods.
II. Governance and security deficits: The absence of government control in key farming regions such as Lower Shabelle, Lower Juba, and Middle Juba, compounded by militant's influence and fragmented authority.
III. Taxation burdens: Farmers face double or triple taxation from federal, state, and militant actors, discouraging investment.
IV. Infrastructure gaps: Limited transportation, storage, and market access hinder productivity and exports.
At the same time, opportunities lie in value addition, market diversification, and sustainable agricultural practices. These sectors must be reimagined through targeted investments and governance reforms to unlock their full potential.

2. Key Challenges

I. Climatic Vulnerability: Somalia's reliance on rain-fed farming makes it particularly susceptible to droughts and floods, as evidenced by the 2022 drought that caused widespread crop failure and livestock deaths.
II. Governance and Security: Key farming regions lack government oversight, leading to disrupted agricultural activity and displacements.
III. Double and Triple Taxation: Farmers face multiple layers of taxation, leaving minimal resources for reinvestment and perpetuating poverty cycles.
IV. Infrastructural Deficits: Poor roads, limited cold storage, and underdeveloped market facilities hinder the movement and quality of agricultural and livestock products.
3. Opportunities for Growth
I. Value Addition: Processing agricultural products like fruits into juices or dried goods and livestock into meat, leather, and dairy can significantly enhance profitability.
II. Export Potential: Somalia's livestock and mangoes are in demand in Gulf markets. Improved infrastructure and certification systems can expand exports.
III. Food Security: Climate-smart agriculture, including drought-resistant crops and better water management, can enhance resilience and self-sufficiency.

4. Policy Recommendations

I. Invest in Infrastructure: Prioritize building rural roads, cold storage facilities, and modernized port handling capacities.
II. Support Agro-Processing: Provide incentives for private sector investment in processing industries for dairy, meat, and fruits.
III. Reform Taxation Systems: Streamline and regulate taxation to encourage investment and reduce burdens on farmers.
IV. Enhance Security and Governance: Strengthen government presence and authority in key farming areas to restore stability and enable development.
V. Promote Sustainable Practices: Introduce climate-smart agriculture and support smallholder farmers in adopting resilient farming techniques.
VI. Expand Access to Credit: Facilitate loans and financial services to help farmers invest in improved tools and technologies.
VII. Develop Export Infrastructure: Establish veterinary certification systems and quarantine facilities to meet international standards for livestock exports.
VIII. Strengthen Regional Trade: Leverage partnerships with neighboring countries and regional blocs to access new markets.

5. Conclusion

Somalia's agriculture and livestock sectors are pivotal for the country's economic recovery and resilience. Addressing governance, security, and infrastructural gaps while capitalizing on export and value addition opportunities can transform these sectors into engines of growth. By prioritizing reforms and investments, Somalia can achieve food security, reduce its trade deficit, and become a competitive player in global markets.