Understanding sectors for growth in Somaliland and economic opportunities for migrants

Executive summary

Geographically, Somaliland serves as an important part in the economic dynamics in the Horn of Africa, serving as a transit point for goods moving to Ethiopia and especially for livestock being sold in the Middle East. Findings from the assessment indicate private sector stakeholders dominate the market, dotted with Small and Medium-sized enterprises (SMEs), which apart from trade livestock and remittances remain the backbone of the economy. The financial sector includes both formal and informal financial services, challenges for accessing service are due to the high cost of collaterals. The sample size from the respondent’s population group indicates a large presence of migrants within the economy and a demand for highly skilled migrants remains.  

Findings indicate a versatility in the skill and technical proficiency profile of the labour market especially in urban centers ranging from construction to computer-related skills. However, the labor market can be expanded in line with private sector demands. Lack of large-scale industries especially manufacturing and dependency on imports for food remain a hindrance to the economy, but sustained investments in improved physical and social infrastructure along with improving the transport systems can further assist with strengthening and increasing the economic structure.