Issue No. 503

Published 06 Feb 2023

A Blue Economy in Somalia: Opportunities and Challenges

Published on 06 Feb 2023 22:47 min
A Blue Economy in Somalia: Opportunities and Challenges
 
The blue economy-- economic activities related to oceans, seas, and coastlines-- is gaining traction globally. More countries are adopting sustainable models of harnessing the economic potential of their marine and coastal ecosystems. At the same time, climate change is  a major threat to the quality of maritime life. This limits countries from realising the full potential of their ports and shipping, fisheries, offshore wind, marine biotechnology, and a variety of other maritime natural assets. Building an economy based on the ocean that is also resilient to the consequences of climate change requires supportive policies, innovations in institutional and financial systems, and access to long-term and large-scale finance. 
 
In Africa, more countries are embracing the blue economy model. Just recently, the Federal Government of Somalia (FGS) organised a high-level meeting to strategise on harnessing the immense potential of its coastlines and oceanic natural resources. Somalia has taken steps towards building a blue economy despite significant challenges. These challenges include still poor governance and the absence of an appropriate policy and legislative framework, which chokethe macro-economy. 
 
The recent meeting came as no surprise given Somalia’s economic and regional ambitions.  The high-level meeting shows that Somalia is committed to investing significantly in harnessing its maritime resources as a way to rebuild its stagnating economy. Moreover, the FGS sees a blue economy as leverage with the East African Community (EAC), where it hopes to become an important regional player.
 
The extraordinary potential of Somalia’s blue economy is unparalleled in relation to most countries. Somalia is a crucial departure and entry point for some of the world's most vital international commercial shipping lanes with a coastline of over 3,000 kilometres long. . Most of Somalia's ocean freight is handled by several large ports, each with protected deep-water facilities. Mogadishu is responsible for most of Somalia’s general cargo imports and exports. Berbera, Boosaaso, and Kismaayo each specialise in shipping different commodities of general cargo and livestock. 
 
According to the Maritime Security Index, Somalia is in an extremely favourable situation in terms of both ability to sustain itself and resistance to the effects of climate change. This allows the country to invest in its maritime sector without first having to repair the damage caused by years of overfishing. One of the most valuable blue resources that Somalia has is its fishing industry. In 2014, international and local vessels together hauedl in more than USD 260 million worth of fish from Somali waters. Out of 38 countries in Africa that report their annual fish catches, Somalia has the 15th-highest catch.
 
However, these resources are largely under-utilised. In 2012, fish only accounted for roughly 3% of overall exports and 2% of the country's gross domestic product. Previous fear of being attacked by pirates caused a significant number of foreign vessels, especially industrial long liners and gillnetters, to steer clear of waters off the coast of Somalia. This delayed the development of a thriving marine sector.
 
Somalia’s embrace of the blue economy ideal is closely tied to its quest to join the EAC regional bloc. By becoming a full member, Somalia will be able to collaborate with other member states to better exploit its oceanic resources. Somalia’s southern neighbour Kenya has already made significant steps in developing its own blue economy. 
 
However, despite the benefits that Somalia stands to gain from an ocean-based economy, and despite its regional and international ambitions, several challenges make it difficult to achieve its blue economic goals. Most prominent, Somalia continues to face issues of poor governance that limit its ability to focus on developing a blue economy. The country is still emerging from a violent and chaotic past, and its nascent structures and institutions still lack the capacity to effectively exploit natural resources.

Currently, Somalia’s still nascent army and security structures make it almost impossible for the FGS to hold full control of its oceanic waters. Also, the country lacks resources such as human capital and financial support necessary to exploit the potential of a blue economy. Finally, Somalia lacks sufficient structures to guide the effective exploitation of a blue economy; existing legal and policy mechanisms are adequately enforced due to capacity. There are no proper institutions like the navy, maritime authority and parastatals empowered to help harness a blue economy.
 
To fully maximise the potential of a blue economy, Somalia needs to invest significantly in developing its coastlines and taking advantage of the natural resources in its oceanic waters. In areas where the country is deficient in resources and capacity, it might partner with other countries, such as thosewithin the EAC once it is admitted as a full member. Moreover, Somalia requires legislative reform, stronger democratic institutions, and progressive policies to create an enabling environment for a blue economy to take hold.

 
By The Somali Wire Team

To continue reading, create a free account or log in.

Gain unlimited access to all our Editorials. Unlock Full Access to Our Expert Editorials — Trusted Insights, Unlimited Reading.

Create your Sahan account Login

Unlock lifetime access to all our Premium editorial content

You may also be interested in

Issue No. 966
A New Spring in His Step: How HSM Engineered His Rebound
The Somali Wire

Today marks exactly two months since Somali President Hassan Sheikh Mohamud (HSM) unveiled his unilateral one-year term extension. While it is too early to draw definitive conclusions, HSM has evidently survived, rebounded, and consolidated power in ways that defy earlier predictions. A leader whom many had been wont to dismiss as too tarnished to retain executive power beyond May 2026 remains firmly in the saddle, holding the political initiative and dictating terms. His opponents, meanwhile, are in deep disarray. Their cohesion is fracturing, they lack a coherent, unified strategy, and they are locked in a dialogue of attrition designed to wear down their will and force their capitulation.


24:38 min read 16 Jul
Issue No. 965
The Somaliland-Ethiopia MoU: Ethiopia Missed a Milestone While Somaliland Avoided a Historic Mistake
The Somali Wire

The Somaliland–Ethiopia Memorandum of Understanding (MoU) was hailed as a historic breakthrough. In reality, it was a strategic gamble built on contradictions—and its apparent failure may prove to be a blessing in disguise for Somaliland and Ethiopia.


6:03 min read 10 Jul
Issue No. 964
Part II/The Human Rights Deficit in Somalia's New Penal Code
The Somali Wire

For the first time in over six decades, Somalia has overhauled its foundational criminal law - the 1962 Law No. 5. Now awaiting parliamentary and presidential approval, the Draft Somali Penal Code (SPC) nonetheless struggles with multiple hurdles and will likely face significant objection, not least, from Somalia’s Western partners and liberal-minded younger generation of Somalis disappointed with the new text’s failure to break away from its historical illiberal roots.


16 min read 08 Jul
Issue No. 963
Part I/The Fault Lines in Somalia’s Penal Reform
The Somali Wire

The Federal Government of Somalia (FGS) has published a new Draft Somalia Penal Code (SPC) - marking its first comprehensive legal overhaul in 64 years. The 136-page draft was first submitted to Parliament in January 2026 and underwent its first reading but the process of endorsing it became entangled with the escalating electoral and constitutional dispute, forcing the government to shelve it. The changes aim to update the 1962 Law No. 5 Penal Code and codify Islamic criminal law (uqubat). If endorsed by parliament and approved by the President, they will formally embed the three pillars of the Sharia punitive framework into the statute - fixed punishments (hudud), retributive justice (qisas), and statutory judicial discretion (ta'zir).


16:49 min read 03 Jul
Issue No. 129
Centring North Eastern Kenya - The Rise Of Kenya's Ethnic Somalis
The Horn Edition

A president does not pay a visit to Wajir by accident. When William Samoei Ruto chose Wajir as the centre stage for Kenya’s Madaraka Day celebrations on 1 June — the first sitting president to do so — he was not merely varying the ceremonial calendar. He was making a premeditated statement about who belongs at the centre of Kenya’s state and who no longer belongs at its margins. The message was not merely ‘taking Nairobi to NorthEastern.’ It was the centring and mainstreaming of an ethnic Somali-dominated region that, for much of Kenya’s post-colonial history, has been treated as a security issue rather than a political constituency.


28:45 min read 26 Jun
Issue No. 962
Somaliland’s Recognition Angst
The Somali Wire

Somaliland President Abdirahman Irro’s trip to Israel in June (from 14-17) was far more than symbolism. Not only was it a calculated strategic diplomatic play, and a chance for Somaliland to appear on the world stage, but also an opportunity for Somaliland to present itself as a fully-functional state, able to conduct foreign relations and cut bilateral deals. Irro, a seasoned former diplomat, navigated the intricate demands of state protocol with remarkable ease - cutting an immaculate, regal figure in his navy-blue suit. Accorded full head-of-state honours, he laid a wreath at the Theodore Herzl mausoleum, engaged in high-level talks with President Isaac Herzog and Prime Minister Benjamin Netanyahu, opened the new Somaliland embassy in Jerusalem and convened meetings with Knesset members, senior officials, and business leaders. For Israel, hosting President Abdirahman Irro in Jerusalem functioned to signal its strong commitment to deepening strategic ties while also countering perceptions of waning diplomatic momentum.


22:37 min read 24 Jun
Issue No. 961
Deciphering Al-Shabaab's Radio Silence
The Somali Wire

Never interrupt your enemy when they are making a mistake. Napoleon Bonaparte’s classic rule of combat seems to be the guiding doctrine behind Al-Shabaab’s sudden, uncharacteristic radio silence as Mogadishu’s political elite tear themselves apart. As the ‘government-in-waiting’, one would have assumed the militants would take full advantage of its adversaries’ internal divisions, maximising the propaganda opportunities this offers, and campaign for their own cause. Typically quick to weaponise any intra-Somali division, the militant group's decision to sit out the latest intra-Somali fracturing is intriguing. By withholding its usual blitz of propaganda, the group is playing a longer, quieter game - waiting for the federal house to implode further before stepping in.


20 min read 17 Jun
Issue No. 960
The Galmudug Vote – The Next Powder Keg
The Somali Wire

While much international attention is on Mogadishu – understandably so - another electoral crisis is brewing in the regional state of Galmudug. Historically unstable, prone to Al-Shabaab violence and destabilisation and wracked by chronic inter-clan frictions and periodic armed hostilities, the looming vote appears likely to aggravate the situation and foment more divisions.


7:13 min read 10 Jun
Issue No. 959
Mogadishu on the Edge: The Danger Has Not Passed
The Somali Wire

Two days of heavy clashes (3–4 June) in the Somali capital, Mogadishu, between federal troops and opposition-aligned forces have underscored both the fragility of the city’s security environment and the volatility of electoral politics. Although relative calm has since returned to the two hardest-hit districts - Hawl Wadaag and Abdiaziz - and mediation efforts have intensified, tensions remain high, fuelling fears of renewed armed skirmishes. Credible reports of mass clan militia mobilisation on the edges of Mogadishu speak to a conflict that is widening. The militarisation of politics and elite fragmentation over the electoral process have shattered a core assumption: that Somali leaders will ultimately step back from the brink to negotiate a way forward. Consequently, the country is entering a perilous phase in which domestic factions alone cannot resolve the impasse, making neutral, external mediation a necessity.


10:12 min read 08 Jun
Scroll