Fostering a Vibrant and Inclusive Private Sector is Key to Somalias Resilient Growth [Video]

Since Somalia’s private sector accounts for an estimated 95 percent of total jobs created, marshaling the private sector to support the country’s development is critical for reconstruction, transitioning from fragility, and generating more inclusive economic dividends for it’s people. The country also needs to focus on growth (to avoid falling back into debt), create jobs, and enhance economic opportunities for citizens.

Published today, the Somalia Country Private Sector Diagnostic (CPSD) notes that while private businesses have been remarkably resilient and presently provide most of the products and services on offer in the country, Somalia’s productive tradable sectors remain subdued and fall short of providing a strong basis for structural transformation. Furthermore, private sector activity is concentrated on commerce and other, mostly non-tradable, consumption-driven services. This consumption-driven growth often benefits a few firms that leverage their market-dominating positions. Therefore, most Somali firms remain highly disadvantaged, leading to a “missing middle” and …