March 26, 2025
Somalia, a country grappling with numerous challenges, is at a crucial juncture in its efforts to harness its natural resources for economic development. The country is said to hold unlimited and untapped wealth and resources both obvious in terms of agricultural lands and marine space, perhaps the biggest in Africa with a coastal belt of over three thousand kilometers and underground. Beneath its lands, mountains and seas also lie immeasurable wealth in terms of oil and gas, gold, lithium, uranium (a third of known global reserves of the mineral), copper and many others.
Despite notable advancements, particularly in the petroleum industry offshore, several obstacles hinder the growth of the mining sector and even food production in the country. This potential wealth of Somalia is complimented by a geostrategic location which makes it the envy of many other nations. This article delves into the key challenges and opportunities that define Somalia’s mining landscape, the opportunities, and the obstacles in the way, both internal and external. These include, among others, the following:
Infrastructure Development
After going through years of conflict, there is no doubt that the country’s infrastructure has deteriorated over the years. Ports, roads, and airports all need improvements, and this could be from both the public and private sectors. The Mogadishu Port and Airport have been improved through Turkish investments, while most of the other ports and airports have also been marginally improved. Both Berbera port and Hargeisa and Berbera airports can now receive international airlines and larger container ships and have been improved. The process should continue.
If Somalia’s mining is to thrive, it must prioritize the construction of roads and seaports and perhaps even railways to connect the country’s length and breadth. This will improve, in the process, the governance infrastructure and the collection of data and information. Efficient infrastructure is critical for stimulating exports and facilitating the import of necessary equipment and materials.
There are currently some 21,830 kilometers of roads in the country, of which only 2,860 kilometers are estimated to be paved (some 13 percent). (Source: USA International Trade Administration – Somalia Commercial Guide). Most of the paved road network is believed to be in poor conditions. Many of the Somali ports along the long coast of the country are reported to need improvements in cargo storage, cold chain storage and handling, additional berths, logistics support, and management services. Without these advancements, the mining sector’s potential and, for that matter, any other exports and imports, will remain constrained.
Capacity Building
There is a pressing need to uplift the skills of the workforce. Somalia has undergone a severe and long civil and governance breakdown. However, and despite the attempts to assist Somalia’s educational capacity and the skills of its workforce, Somali communities in the country were more than enough to build their own institutions both at the public and private levels from early age to higher tertiary education. The process is certainly not complete but it has been much better than the funds purportedly used by NGOs to finance capacity building in the country. There is currently a lack of training and expertise in the mining sector, which impedes progress and development in this sector. It will be crucial for the country to invest heavily in the skills of mining and minerals in the country to support and sustain the potential mining operations of the country. At Amoud University of Awdal region, we are introducing a new college of geology and mining to the skills the school provides.
Absence of Bankable Data
Another significant challenge is the absence of reliable data. Information is crucial for any activity and in Somalia, lack of it remains one of the main obstacles in every front. There is lack of information in the government to communicate with its own citizenry and there is lack of any information to provide to any party who may be interested in investing in the country be it for mining, agriculture and/or marine and other activities.
Statistics Somalia, although it may exist in name, is practically absent and many who live in the country live through hunch and possibilities and not from hard evidence and data. For mining companies to invest in Somalia, there must be certainty about the existence and viability of mineral resources.
Although Somalia has focused on developing its petroleum industry lately with the help of the Turks, the need to encourage mineral exploration is becoming increasingly apparent. Reports abound of the potential availability of many minerals crucial for the technologies of today and those of tomorrow.
Many companies are reported to have stationed themselves in Halane district of Mogadishu and illegal mining appears to be taking place night and day in the country without the government knowing what is being taken from right under its nose – Aden Abdulla Osman International Airport of Mogadishu. The lack of information and generation of quality data through exploration is essential for the mining industry.
Many companies who are currently illegally mining in the country would not be able to carry on their nefarious activities and proper investors would have come forward to invest in the country through the availability of bankable information and data.
Control and Security Issues
Despite the potential wealth, the country is marred by political instability, some of it, of its own making but most of it, of the making of others, who have interest in the country and its wealth. Abiye’s insistent call for an outlet to the sea should be a marker! The underdeveloped infrastructure, the greater part of the country being rural, and the simple life style of the people as nomads and/or agro-pastoral, has not only been unhelpful but has also enabled malicious terror groups and mercenaries to settle in the lands and impose their will on the people through terror and false religious pretentions.
Most rural areas in Somalia remain under the control of the imposed Al-Shabaab, who came to the country some eighteen years ago while others remain under the control of the ISIS, another imported terror group, which showed its ugly face in recent years, with many districts being besieged and inaccessible.
The regions they control are the main sources of food and wealth (mineral resources), both underground and above ground in the country and in the maritime areas, to ensure they cow the people. This lack of security poses a significant threat to the stability required not only for producing the country’s own food but also for mining operations. Ensuring safe access and control over these regions and the country in general is paramount for any meaningful progress in these sectors – mining and food production. The weak and corrupt governance in the country also financed and funded by external sources, has not been helpful to the country and its poor people – their own kind and kin and kith.
Corruption
And finally, one must note that the Corruption Perception Index is a leading indicator of public sector corruption. In 2024, Somalia was scored 179th out of 180 countries scored. It is not making any strides towards improving itself and this remains one of the main obstacles to becoming a more stable country and nation. Ranked at the bottom of the Transparency International Corruption Perception Index, the country presents a challenging environment not only for foreign oil and mining companies, but also for its own people and hence its political stability.
The lack of robust measures to combat corruption exacerbates this problem, deterring potential investors. If the leaders are dancing on their heads, what would the followers be doing? There is a rampant corruption and a deeply entrenched clan patronage in the country that has been the pain of Somalia for years now and it is perhaps high time, the good silent majority rose to the challenge and replaced the corrupt current political class both governing and in the opposition with the good ones in their ranks.
Conclusion
Somalia is navigating through many challenges, which include not only its political turmoil and hence instabilities but also fighting off terror groups and those behind the curtains pushing them to disrupt lives and lovies in the country. It will, however, be crucial, as well, that Somalia recognizes its curently untapped mineral wealth.
By addressing security concerns, generating reliable data, combating corruption, developing infrastructure, and enhancing workforce capabilities, Somalia can create a more conducive environment for mining investments.
The time has come for Somalia to encourage and welcome investors and mining companies to explore and develop its mineral resources not only from the Turks who are involved in the oil and gas sector offshore but also the other crucial minerals, which may include the large uranium reserves, the lithium, the copper, the bauxite, the iron ore and coal for an efficient steel industry in the country, and others