Examining Somalia’s Private Sector Development: A Critical Report Analysis

This critical analysis examines the World Bank Group’s report “Creating Markets in Somalia: Unlocking Private Sector-Led Growth at a Critical Juncture of Somalia’s Development.” The report, published in July 2024, presents a detailed assessment of Somalia’s private sector and offers policy recommendations aimed at fostering its growth. The report labels this moment a crucial turning point for Somalia’s development. While significant political and institutional advances have occurred since the establishment of the Federal Government of Somalia (FGS) in 2012, the report stresses that this progress is fragile. It argues that to solidify these gains, Somalia needs inclusive economic growth, which must be driven by the private sector due to the limited capacity of the FGS.

This analysis will provide a detailed assessment of the report’s findings, examining its strengths and limitations, and considering potential biases that may inform its recommendations. It will explore whether the report’s focus on strengthening formal institutions and attracting foreign investment adequately addresses the complexities of the Somali context, including the deeply ingrained nature of informal institutions and the need to balance economic growth with social equity.