The role of the private sector in creating employment opportunities in Somalia

The private sector is Somalia's largest employer. It is estimated that close to 90% of Somalia's working-class do work for the privately owned business. For example, Somalia's leading Telecommunications firm, Hormuud employs 10,000 individuals, nearly twice the number of Somalia's workforce on the government payroll. This is a true testimony that Somalia's private sector is the backbone of the country's livelihood. 

"It is an obligation made incumbent upon us by humanity; we are proud that we are Somalia's leading employer. This is due to the fact we are a big company that works all over Somalia," said Mahamed Noogsane, Head of Human Resources at Hormuud Telecomms.

Level of innovation in Somalia 

While there are thousands of graduates in Somalia, the level of innovation and creativity is very low in the country. The skilled workforce in Somalia are also focused in securing a job and don't create new business initiative which leads to soaring unemployment rates in the country. Several banks including Salaam Somali Bank have supported the investments of many small-scale businesses that need capital to operate. Despite the existence of such opportunities, few unemployed people are ready to make the most out of it.

"We have supported many youth investments, and we will continue with these efforts. This saved youth from emigrating that would have endangered their lives while looking for a better livelihood," said, Ahmad Farah Fidow, the Head of Murabaha at the Saalam Somali Bank.

Government efforts to address unemployment

Due to restrictions imposed as part of the IMF reforms, the government of Somalia has halted the recruitment of new employees. However, the government has recruited many on casual engagement funded through the budget from the taxpayer income.

Apart from the private sector and the government, many International Organizations operate in Somalia that hire ex-pats from their respective countries for jobs that locals can do. There are ongoing efforts to address this. There is a need for the Federal Government of Somalia to pursue with the same efforts the high unemployment rates and come with a plan to address this issue which is a big threat to national security.