In a historic shift, Somalia has entered the global conversation on human development by securing a spot on the Human Development Index (HDI) for the first time in 30 years. This milestone signifies a promising new chapter in Somalia’s journey towards sustainable growth, driven by a steadfast commitment to human capital development and substantive international support.

At the Biannual Human Capital Development Forum in Mogadishu earlier in July, Prime Minister Hamza Abdi Barre emphasized the critical need for global assistance in expanding investments in human capital. With 80% of the population struggling to meet daily needs and 75% of youth facing unemployment, Somalia’s focus on enhancing education, health, and skills development is not just strategic but essential. The country’s commitment to human capital as the fourth pillar of its National Transformation Plan highlights a clear vision for progress and prosperity.

Somalia’s predominantly young population — over 80% under the age of 35 represents both a challenge and an opportunity. Investments in this demographic are crucial for creating a resilient and skilled workforce capable of driving the nation’s growth. In partnership with the Government, UNDP’s initiatives, which includes the development of the Multidimensional Poverty Index (MPI) and Somalia’s first National Human Development Report, is a pivotal step towards understanding and addressing the multidimensional facets of poverty and development.

Despite entering the HDI at the lower end of the ranking, Somalia’s track can only move upward as it climbs the global ranking in the coming years. The country’s efforts to build a robust data system, led by the Somalia National Bureau of Statistics (SNBS) and supported by UNDP, promise a brighter future. This foundational work, including the two pioneering reports, is expected to yield significant advancements in the coming years.

Somalia’s transition from decades of civil conflict to a hopeful future is marked by complex political, economic, environmental, and social change. Since the 2012 Provisional Constitution that established the Federal Government of Somalia (FGS) and the Federal Member States (FMS), Somalia has successfully conducted three national elections completed in May 2022. Somalia’s efforts in rebuilding state capabilities have been strongly supported by international partners, including financing and extensive capacity development (CD) support.

However, substantial and sustained investment in both human and physical capital is imperative to building a resilient Somalia. The recent poverty report revealing that 52% of Somalis live below the poverty line underscores the urgency of these investments. Additionally, recurring natural disasters such as droughts, floods, and locust infestations, exacerbate the challenges of development and poverty alleviation. Internal displacement affects nearly 2.1 million people, further highlighting the need for comprehensive and inclusive development strategies.

The economic landscape presents its own set of challenges and opportunities. With an economic growth rate of 2.4% in 2023 and revenue collection increasing significantly, external debt constituting 6% of the GDP, Somalia’s per capita income (PPP) stands at $1554. While these figures indicate some progress, they clearly call for comprehensive reforms for enhancing the economic development environment and attract more investments.

Women’s participation in the labor force, currently at 31%, also highlights an area ripe for development. Empowering women through education and employment opportunities can significantly contribute to the nation’s overall growth and stability.

As Somalia prepares to publish its first-ever National Human Development Report and the Multidimensional Poverty Index Report, expected in the last quarter of 2024 or early 2025, we look forward to more in-depth national dialogue on addressing the multifaceted challenges of the country’s ongoing transition. This will, without a doubt, mark another milestone in Somalia’s human development journey.

The outgoing Deputy Resident Representative of UNDP Somalia, Ms. Sophie Kemkhadze is assuming her new position as the Resident Representative for UNDP in Libiya. Follow her at: @SophieKemkhadze