This information was relayed via the bank’s latest edition of Somalia Economic Update, as seen in the East African news publication, The East African.
As economic activity picks up, Somalia is expected to strengthen over the medium term, with growth estimated to progressively increase to 3.7% in 2024 and 3.9% in 2025.
Somalia’s economic hindrances
The World Bank’s projection of growth decline in the East African country is predicated on the country’s lack of economic diversification, low resistance to natural disasters, and a heavy dependence on foreign aid and businesses.
“Water insecurity, including exposure to floods and droughts, is amplified by environmental degradation, deforestation, and climate change,” said Chantal Richey, World Bank Senior Water Supply and Sanitation Specialist. “Managing water better is critical for helping Somalia cope with climate variability and economic shocks, particularly from floods and droughts.”
The report notes that the country’s vulnerability to climate change, highlights the need for it to develop a better water management system.
“To build a strong economy, Somalia must have fair and effective policies and regulations for managing water resources. This means making sure everyone has access to water and reducing conflict around water. By giving water a top priority in economic plans and decisions, Somalia can create a sustainable and prosperous future,” the report reads.
“Water holds the key to Somalia’s economic resilience and growth. The integration of climate change considerations into the country’s growth agenda is essential for navigating the challenges posed by water scarcity and climate variability,” the report adds.
“Formerly comprised of 7 member states, Kenya, Tanzania, Uganda, the Democratic Republic of Congo, Burundi, Rwanda, and South Sudan, Somalia on Friday, November 24th, became its eighth member. Following a year of deliberation by the other heads of state, Somalia was finally admitted into the bloc, after the regional event; the 23rd ordinary summit of the heads of state held in Arusha, Tanzania.”