Somalia Rises: A Nation Rebuilding - Eyes from Africa

The World Bank today commended Somalia's significant progress in rebuilding its economy and state institutions. A key milestone was achieved in March 2024, when Somalia successfully settled $4.5 billion in debt owed to international financial institutions. This accomplishment was made possible through the support of the International Development Association , the International Monetary Fund , the African Development Bank , and other creditors, including members of the Paris Club. This debt resolution paves the way for Somalia's reintegration into the global financial system, a major step forward from its pre-civil war status.

Somalia's economic recovery efforts are further bolstered by the Paksnano program, launched in collaboration with the World Bank. This first-of-its-kind national safety net program aims to assist 3.7 million Somalis with cash transfers to support early recovery from shocks and contribute to poverty reduction efforts. The program also targets an increase in the average daily income, currently estimated at $2.15 per person. By December 2025, it's anticipated that roughly a quarter of the population will benefit from Paksnano.

Somalia's commitment to regional integration was solidified in late 2023 with its accession to the East African Economic Community. This landmark event, as highlighted by the Somali President, symbolizes a brighter future for Somalis. It unlocks opportunities for economic development, expands market access through the elimination of trade barriers, and facilitates the movement of goods, services, and people within the region.

Somalia is experiencing a remarkable transformation, a stark contrast to the decades of civil war that ravaged the nation. Abdi, a building contractor, reflects this optimism. "Somalia has become attractive to investors," he says, his voice brimming with pride. He and his team are working at a rapid pace, creating jobs for a diverse range of construction workers.

"We waited a long time for this," Abdi continues. "From the start of the civil war until 2018, Somalia was like a patient in critical condition. But now, there's a sense of recovery and security stability."

This newfound stability is drawing investment from across the Horn of Africa. Abdi works with a group of investors from Kenya, Yemen, Sudan, and Turkey, all recognizing the potential in Somalia. "There's a significant increase in business," he confirms, "Somali suppliers are finally finding opportunities."

Comparisons are now being drawn between Somalia and its more developed neighbors. "Clients tell me Somalia is flourishing faster than many other African countries," Abdi says. "Analyses show we're rising from the bottom of the list. Somalia, once a model of a failed state, is excelling in construction and other sectors. Look at the pictures of Mogadishu – they speak for themselves."

Somalia's resurgence is further fueled by the positive developments in the region. "Ethiopia and Kenya's growth, Djibouti's stability, and the success stories of South Africa and Rwanda – all these inspire Somali youth," Abdi explains. "There's a shared dream of a secure and prosperous future."

This optimism extends beyond Somalia's borders. "Somali nationalists in neighboring countries and the diaspora are eager to contribute," Abdi says. "They're waiting for a sign, a reason to return and rebuild."

Somalia's construction industry is a prime example of how far the nation has come. "We're building sustainably, learning from others," Abdi emphasizes. "Our workforce is more professional now. We're all determined to showcase a Somali renaissance that will fill us with pride."

Abdi's work is a testament to the transformative power of stability. "People are thinking positively, seeking opportunities, and utilizing government services," he observes. "Every region is undergoing beautification."

While income levels remain below those of neighboring countries, Abdi sees a bright future. "There's a noticeable improvement," he says. "The rise in average income across sub-Saharan Africa gives me hope for Somalia."

This hope is bolstered by Somalia's rich potential. Oil exploration permits have been issued, with promising signs offshore. The fishing, livestock, and agricultural sectors all hold significant promise. Somalia's strategic location, vast coastline, and educated diaspora further strengthen the nation's position.

But most importantly, Abdi highlights the resilience of the Somali people. "For thirty years, they endured hardship," he says. "They preserved Somalia, the ancient land."

Somalia's story is one of remarkable resilience and burgeoning hope. As Africa experiences an economic renaissance, Somalia is poised to play a key role, provided its people unite, prioritize peace, and embrace a brighter future.