Somalia’s new push to turn tides into jobs

• Somalia’s blue economy is set to benefit from a 18-month programme, supported by Hormuud Telecom and Salaam Somali Bank, with funding of $820,000, will deliver initiatives designed to expand employment, strengthen small businesses and the business environment, as well as promote green and digital innovation.
• The partnership supports Somalia’s wider shift toward locally led development and private-sector growth.
• With one of the youngest populations in the world, creating jobs is critical to the country’s stability and long-term recovery.

The Hormuud Salaam Foundation (HSF) and the United Nations Development Programme (UNDP) have launched a new partnership to tackle youth unemployment and unlock opportunities in Somalia’s high-potential green and blue economy. The programme will reach more than 2,000 young people and 360 small and medium-sized enterprises, with at least half being women or female-led.

The 18-month programme, supported by Hormuud Telecom and Salaam Somali Bank, with funding of $820,000, will deliver initiatives designed to expand employment, strengthen small businesses and the business environment, as well as promote green and digital innovation. Key activities include:

• Shaqo-Abuur – a new digital employment platform connecting youth with verified job opportunities, skills training, and mentorship.
• Innovation Lab – a collaborative space to test business models in renewable energy, fisheries, aquaculture, and circular waste management.
• Business incubator and accelerator – targeted training for youth and women entrepreneurs on marketing, business management, and financial literacy.
• Access to finance – Sharia-compliant microloans and seed funding for green and blue businesses through Salaam Somali Bank.
• Digital investment platform – development of an online investment management system to attract local and diaspora investors.
• Skills development – design and implementation of new TVET, job-related, and digital skills programmes for youth, including people with disabilities and displaced communities.
• Regulatory recommendations – reviewing key regulations to propose reforms that simplify procedures and create a more transparent and inclusive investment climate.

Hormuud Telecom driving digital innovation, blue economy

“This initiative is a landmark in public–private collaboration in Somalia” said Lionel Laurens, UNDP Resident Representative in Somalia.  “With the Hormuud Salaam Foundation providing financial backing, Hormuud Telecom driving digital innovation, and Salaam Somali Bank facilitating Islamic finance for young entrepreneurs, this partnership is a powerful example of Somali-led development”.

The partnership supports Somalia’s wider shift toward locally led development and private-sector growth. With one of the youngest populations in the world, creating jobs is critical to the country’s stability and long-term recovery. The partnership was witnessed by Hon. Jibril Haji Abdi, Deputy Prime Minister of Somalia, alongside the Ministers of Youth and Sports, and the Deputy Minister of Labour and Social Affairs.

Somalia’s private sector already provides around 95 per cent of all jobs, yet many enterprises remain informal and under-capitalised, operating in a complex regulatory environment. Women, who are estimated to make up approximately 60 per cent of Somalia’s small businesses owners, face particular barriers to credit and formalisation. With youth unemployment close to 67 percent and more than three-quarters of Somalis under 30, the country’s economic potential depends on unlocking access to both skills and finance.

The new programme directly addresses that gap, helping young people gain the expertise, confidence, and investment they need to build the next generation of Somali businesses. It focuses on fast-growing, job-rich sectors like renewable energy, fisheries, and digital enterprise.

Somalia’s renewable energy potential

With 3,300 kilometres of coastline, some of the highest renewable energy potential in the Horn of Africa, and among the most affordable mobile data in Africa, Somalia’s natural and digital advantages offer a powerful foundation for sustainable growth.

The new partnership helps translate those strengths into livelihoods, supporting MSMEs, green innovators, and tech-driven small firms working to formalise and digitise their operations in sectors such as fisheries, renewable energy, and digital enterprise.

Abdullahi Osman, CEO of Hormuud Salaam Foundation, said: “In every corner of Somalia, you meet young people with ideas ready to take off — from a small shopkeeper in Baidoa to a coder in Mogadishu. They don’t need charity; they need a fair chance. This partnership gives them that, the skills, capital, and confidence to build something lasting.”

By linking employability, enterprise development, and sustainability, the initiative advances Somalia’s National Transformation Plan (2025–2029) and Vision 2060. It reflects a shared belief that Somalia’s most powerful resources are its people and its natural assets. By helping young Somalis and small businesses thrive in the digital, green, and blue economies, the partnership aims to build a more resilient, inclusive, and self-reliant Somalia.

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