Somalia Import Data

Somalia's Import/Export Overview and Domestic Market Update

Imports & Exports

• Top Trade Partners: Somalia's major trade partners include the UAE, China, and Saudi Arabia, reflecting a diverse but selective global engagement strategy.

• Top 5 Imports: Livestock, foodstuffs, textiles, machinery, and vehicles. Together, these items account for over 60% of total imports, emphasizing the country's needs for both consumer goods and industrial inputs.

• Top 5 Exports: Livestock, bananas, charcoal, fish, and frankincense. These exports represent nearly 80% of total exports, highlighting Somalia's agricultural and natural resource potential.

• Trade Balance: Somalia faces a significant trade deficit, with imports far outweighing exports. Despite attempts to boost export capacity, the country struggles to meet its domestic demand with local production.

• Trade Policy: Somalia has been liberalizing its trade policies to attract foreign investment. However, issues such as piracy and political instability in the past have deterred significant economic partners.

Domestic Market

• Consumer Spending: Consumer spending in Somalia is robust, driven by remittances from the diaspora and increasing urbanization. However, high levels of poverty limit the purchasing power of the majority.

• Interest Rates & Inflation: High interest rates and inflation rates impact the cost of living and business operations. Lack of stable financial institutions exacerbates these issues, making economic stability a challenge.

• Supply Chain: Supply chain inefficiencies are common due to inadequate infrastructure and political instability. This leads to higher costs and intermittent shortages of goods, affecting both the import and domestic market.

• Industry Performance: The agriculture, fishing, and livestock sectors are the backbone of the economy, but face challenges such as drought and conflict. The service sector is growing, particularly in urban areas.

Overall Outlook

Somalia's economic prospects are tied to its ability to stabilize its political situation and improve its infrastructure. Enhancing trade relationships and developing local industries could significantly boost economic growth, despite the ongoing challenges.