Is doing business in somalia profitable or worth the risk ?

[yegu]

Somalia is ranked 190 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Somalia remained unchanged at 190 in 2019 from 190 in 2018.

Somalia Ease of Doing Business

Somalia is ranked 190 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Somalia remained unchanged at 190 in 2019 from 190 in 2018. Somalia Ease of Doing Business - values, historical data, forecasts and news - updated on July of 2025.

tradingeconomics.com

my question is this:-

1,what are the risks of doing business in Somalia and how they can be managed ?
2.how bad is the corruption in somalia and how do you prevent getting extorted ?
3.hows the security in somalia is it progressing ?
4.where does al shebab operates ?

when im talking about somalia im also including somaliland and puntland

 

[NinWero]

Its, it very profitable if you over look many of the other things.

1, what are the risks of doing business in Somalia and how they can be managed ?

Security risks like bombing and assassinations- lack legal framework - infrastructure issues and corruption among other things.



2.how bad is the corruption in somalia and how do you prevent getting extorted ?

It depends how well connected you are. Corruption is the norm in some places, so you have to go with the flow.



3.hows the security in somalia is it progressing ?

Depends, we will see what this new government does with the security situation.


4.where does al shebab operates ?

Mostly in South. If you are a business in the South you would most definitely pay tax to Alshabab

 

[Aurelian]

If you go to puntland and SL then the only problems will be corruption and bureaucracy, both will drain you

 

[repo]

Somalia is ranked 190 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Somalia remained unchanged at 190 in 2019 from 190 in 2018.

Somalia Ease of Doing Business

Somalia is ranked 190 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Somalia remained unchanged at 190 in 2019 from 190 in 2018. Somalia Ease of Doing Business - values, historical data, forecasts and news - updated on July of 2025.

tradingeconomics.com

my question is this:-

1,what are the risks of doing business in Somalia and how they can be managed ?
2.how bad is the corruption in somalia and how do you prevent getting extorted ?
3.hows the security in somalia is it progressing ?
4.where does al shebab operates ?

when im talking about somalia im also including somaliland and puntland

1. It depends on the business.
2. It's the most corrupt place in the world. You will get extorted if you operate outside your clan area however if you are from a Shabaab controlled area you will get extorted regardless.
3. Security has been the same for the past 10 years.
4. Shabaab mostly operates in the rural south.