Unlocking Somalia’s Future: Youth and Entrepreneurship Opportunities

In Somalia, where 70 percent of the population is under the age of 30 (World Bank, 2023), supporting youth and entrepreneurship is no longer a choice, but a necessity. Young Somali adults are no longer stuck in a narrative of scarcity, and with both challenges, and resilience that has shaped them, young Somali adults are rewriting the pathway of opportunity. Carefully, I first stepped onto a small tech hub in Garowe in 2023. The entrepreneur I met took a simple idea of delivering groceries through Whats App and created a successful community-based business. He reminded me in the midst of the limited resourced, paired with an unmatched level of youthful ambition and creativity can create sustainability if continually nurtured. It is difficult to give a complete account of opportunities available to young entrepreneurs in Somalia in 2025, but I hope this article shares some practical examples, tangible actions, and a vision to demonstrate young entrepreneurs can turn ideas into impact

Why Does Youth Entrepreneurship Matter in Somalia

 Youth entrepreneurship in Somalia is more than just creating new small business and small business startups; it is a way to address unemployment, promote innovation and creativity, and create sustainability in local economic development.

Here is why it matters:

• Youth unemployment rates are high, estimated to be greater than 60% (UNDP, 2022).

• Unearthed talent and creativity in sectors: tech, agriculture, services, etc.

• Growth of digital infrastructure, mobile usage above 70% penetration. • Remittances and diaspora networks create opportunities in mentorship and access to capital

Digital and Tech Startups

Somalia’s internet access is expanding significantly, resulting in huge opportunities in:

• E-commerce (selling groceries, clothing, tools, electronics amongst other things).

 • Freelance digital services (graphic design, web development, content writing etc).

• EdTech which eliminates existing barriers to education. For example, a group of university graduates in Mogadishu created an EdTech app that connects Somali students with remote tutors. The app gained over 5,000 active users in 18 months, and exposes just how much distance solutions can be successful in even fragile contexts

Agriculture, Agri-business and Food Security Agriculture

Employs about 65% of the labour force and improvements in this sector would be significant. Examples of opportunities:

• Organic farming, livestock raising for the local and export markets.

 • Startups in Agri-processing (milk, honey, dried fruit and spoilage goods).

• Climate-smart solutions – solar powered irrigation and drought-resistant seeds. case study: In Hargeisa, a youth-led dairy cooperative increased the milk supply 40% through solar cooling systems and also provided jobs to over 50 young people.

Obstacles for Young Entrepreneurs

Even as opportunities increase challenges remain:

• Access to finance is limited (few banks, high collateral).

• Policy and regulatory gaps for businesses opening.

• Limited mentorship and training in business skills.

• Infrastructure gaps particularly in rural areas.

Comparison Table: Opportunities vs Challenges

Sector	Opportunities in 2025	Key Challenges
Digital & Tech	E-commerce, EdTech, freelancing platforms	Internet costs, lack of investor trust
Agribusiness	Processing, organic farming, export potential	Limited finance, climate vulnerability
Renewable Energy	Solar, wind, eco-startups	High initial investment, policy gaps

Practical Steps for Young Somali Entrepreneurs

Harness Existing Local and International Networks

 • Leverage Somali diaspora connections for mentorship and funding.

• Participate in innovation hubs (e.g. iRise Hub Mogadishu, Innovate Ventures) to receive training.

Start Small but Ensure Your Business Model Can Be Scaled

• Utilize micro-business models at first and scale over time.

• Use mobile money (e.g. EVC Plus) for cashless operations.

Use Alternative Financing Solutions

• Utilize crowdfunding (e.g. GoFundMe, network in the diaspora).

• Identify and partner with NGOs who may be providing seed grants as well as accelerator programs.

Adopt Digital Solutions

• Leverage free online courses (from Coursera, YouTube, Google Digital Garage)

Build visibility through social media marketing

Final Through

Somalia’s youth are not going to wait for opportunities; they are establishing opportunities. Real stories reveal that transformation takes place through young people from digital startups in Mogadishu to agribusinesses in Hargeisa and renewable energy programs in Baidoa. As it stands in 2025 for Somali youth’s future in entrepreneurship, the inquiry is not can they become entrepreneurs—it is how much support they will receive from policymakers, investors, and communities.