The era of developing countries relying heavily on assistance from wealthy nations is fading. Recent cuts to foreign aid and shifting donor priorities have underscored a simple reality: countries that depend too heavily on external support leave themselves vulnerable to decisions made far beyond their borders.
The lesson is clear: lasting prosperity must be created at home. That conviction shaped my priorities when I became Minister of Commerce and Industry in December 2025.
My foremost priority was strengthening Somalia’s private sector because I had seen firsthand what happens when businesses are given the opportunity to grow. Investment increases, trade expands, and the economy becomes more resilient. New businesses create jobs, raise incomes, and give young people genuine opportunities at home, reducing the pressures that drive many to undertake dangerous migration journeys or become vulnerable to recruitment by armed groups.
We’re already witnessing encouraging results. Somalia has sustained an average annual growth of roughly 5.25 percentbetween 2013 and 2024. Agriculture, a cornerstone of Somalia’s economy, has seen steady growth in the past decade. And livestock exports, including live animals, meat, and skins, reached an estimated US$1.03 billion and contributes about 10 percent of our GDP.
Likewise, the country’s blue economy experienced growth. However, it is estimated that Somalia’s Exclusive Economic Zone (EEZ) could sustainably produce up to 500,000 metric tons of fish annually, far more than it currently yields.
Somalia is positioning itself as one of East Africa’s most promising frontier markets. To accomplish these ambitious goals, we have started working on key areas that hold true promise: trade facilitation, export promotion and regulatory reforms.
Trade facilitation, especially to the East Africa community, has been of particular interest to me. In 2025, Somalia strengthened its trade ties by making significant progress toward joining both the East African Community (EAC) and the World Trade Organization (WTO), while modernizing the laws, policies and institutions needed to compete in regional and global markets.
That momentum reached another milestone in October 2025, when Somalia formally ratified the African Continental Free Trade Area (AfCFTA), joining the world’s largest free trade area and signalling that the country is ready to do business with Africa and the world.
This shift is visible not just in policy, but on the ground. Walk through the streets of Mogadishu today and you will find Turkish restaurants in bustling shopping centres, the international fashion retailer LC Waikiki, South African restaurant chain Galito’s, and American furniture retailer Ashley HomeStore. Their presence reflects the growing confidence of businesses that see opportunity in Somalia’s improving security environment and expanding economy.
My hope is that many more businesses across East Africa will come to see Somalia not simply as a neighbour, but as a compelling destination for trade, investment and long-term partnership.
Nationally, my Ministry is working to make it easier to do business by cutting red tape, expanding access to finance for small and medium-sized enterprises (SMEs), and strengthening business development services. With support from development partners, these reforms are beginning to create new opportunities for Somalia’s private sector.
The results are already becoming visible. Last year, Somali businesses participated for the first time in the annual East African Trade Fair in Nairobi, showcasing the country’s growing entrepreneurial talent. This builds on the Ministry’s Made in Somalia initiative, which promotes locally made products while connecting Somali producers with regional and international buyers.
Somalia is also strengthening commercial relationships beyond the region. For decades, Somali entrepreneurs have built strong trading links with China, importing goods that supply markets across the country. China’s decision to grant zero-tariff access for Somali exports now creates an important opportunity for Somali businesses to expand into one of the world’s largest markets.
I saw that growing interest firsthand when I spoke at a recent high level economic forum in Beijing. In my remarks, I emphasised that Somalia intends to seize the opportunities presented by China’s Zero Tariff policy to accelerate economic growth through expanded trade, investment and infrastructure development.
As demonstrated by several of our East African neighbours, a strong economic partnership with China can play an important role in advancing industrialisation and creating new opportunities for sustainable growth.
Increasingly, Somalia is being viewed by many countries not through the lens of conflict, but as an emerging market with genuine commercial potential. That shift is reflected at home as well. Today, 227 registered manufacturing businesses operate in Mogadishu. More than half are small-scale enterprises, while almost a quarter are micro-enterprises. Together, they point to a quiet but significant industrial revival driven not by large corporations, but by local entrepreneurs creating jobs, producing goods and diversifying the economy.
One of the clearest signs of Somalia’s economic transformation is the growth of its small and medium-sized manufacturing sector. From bottled water and mattresses to household goods, Somali businesses have expanded steadily over the past decade. Much of this growth has been driven by local entrepreneurs and the Somali diaspora, underscoring the resilience and ingenuity of the private sector even as the country rebuilds its public institutions.
Somalia is positioning itself as one of East Africa’s most promising frontier markets. This is not simply a Somali success story in the making. A more prosperous Somalia will strengthen regional trade, expand investment opportunities and generate shared prosperity across East Africa. The foundations have been laid. The question now is whether businesses across East Africa are ready to seize the opportunities that a more prosperous and economically integrated region will create.
Amb. Gamal M Hassan
Minister of Commerce and Industry for the Federal Government of Somalia