We’re talking about the average income per capita , that’s a national baseline, not the extremes. Some people will exceed it, others will fall below it. You don’t measure it by the millionaire class or, conversely, by those who have lost everything, like IDPs.
Even many of those now displaced by natural disasters were once living stable lives, earning through trade, farming, or local business in towns like Jowhar, Baidoa, and Beledweyne and other villages. You can read their own accounts of how life was before displacement. IDP's are not a reflection of any systemic problem to the economy.
People who raise livestock in Somalia aren’t exactly nomadic. Most live in settled rural areas where they graze animals within a familiar range. Many actually combine livestock rearing with crop farming, especially to grow feed or maintain food security for the household.
And importantly, they earn income. Whether it’s through selling milk, meat, or livestock itself, pastoral communities are economically active. Plus, it’s common for family members to be spread across different livelihoods.
That’s why I already counted them when referring to agricultural earners, they’re producers, not dependents.
To give this more weight:, milk production alone was valued at $6.58 billion in 2013 (and likely higher now with new processing facilities), while livestock exports are worth about $3 billion and meat exports around $266 million. ( Alot of these numbers are also underestimations since it happens in the informal and through mobile money)
But here is the key point. The $500 figure excludes rent, which is often paid separately or subsidized in many households, especially in rural areas. Many families have multiple income earners contributing, not just one person.
The $500 is for basic necessities, not total consumption, which includes secondary spending on education, health, transport, savings, remittances, and so on.
Hargeisa is more stable, but the cost of living is also higher there compared to many rural areas.
So basically, So the $5,000-6k per person figure refers to purchasing power parity (PPP) adjusted GDP per capita, which includes all goods and services consumed or produced per person in a year, not just basic family expenses. It’s a broader economic measure, not just a sum of household bills.
Actually, the assumption that only 4 million people are working while the rest are entirely dependent doesn't align with the available data or economic activity on the ground
According to Somalia’s official labor force statistics from 2023, about 60% of people aged 15 and over are employed, while around 20/21% are classified as unemployed. That means the majority of working-age Somalis are economically active in some form , across formal employment, informal markets, agriculture, pastoralism, or services. So the idea that most people are just “mouths to feed” doesn’t hold up.
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Most Somalis are employed , even in rural areas do they have employment like i have actually told you.
And it's important to remember ,employment in Somalia doesn't just mean office jobs. Livestock traders, fishermen, street vendors, agro-pastoralists, transport workers, builders, remittance agents, market traders, and mobile money operators all count. Most rural households combine multiple income sources , herding, farming, and side businesses , often seasonally. Even youth and women play a huge role in household income generation.
Also, your example about telecom salaries seems anecdotal and on the lower end. According to Somali government estimates, average salaries at major employers like Hormuud or Dahabshiil are significantly higher , reportedly around $1,500 per month
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Your $450 estimate per working person might be modest for low-income earners, but it doesn’t reflect the diversity of income levels. And relying on a flat $200 figure for “those without degrees” is misleading, since many informal workers acrosss different roles and sectors , often earn far more than degree-holders in formal roles and those with degrees depending on their job roles also earn varied incomes.
So if anything, Somalia's real economy is much more active and nuanced than the narrow view of one breadwinner supporting a passive household. That’s exactly why remittances, consumption patterns, business growth, and purchasing power , like we see in cities and rural trade hubs alike , are all far higher than just $450 x 4 million would suggest
You're throwing around numbers like $150 per person in remittances and $7.2 billion per year without any credible source to back it up. That’s not how serious economic analysis works. You can’t just multiply a made-up figure by another guess and treat it like fact.
The point isn’t just about Hargeisa or one city , the broader Somali economy is interconnected, and consumer prices reflect real purchasing behavior, not isolated exceptions.
The lady in the video listing her expenses that
@Barkhadle1520 shared shows that basic staples like rice cost $7–8 per bag and powdered milk is $18.
And this isn’t limited to the north , grocery stores in South-Central Somalia, including major cities like Mogadishu, list similar prices online.
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These stores, markets, and suppliers wouldn’t survive , let alone grow , if there wasn’t sufficient demand. You can’t have shelves stocked with high-cost goods, multiple branches, and daily turnover unless people have enough disposable income to afford them.
Also, while insecurity and displacement affect some areas more than others, they don’t erase the reality that people are still earning, buying, and consuming across regions. Even families in difficult regions have income sources , from livestock/agriculture, remittances, trade/businesses, or extended family. The idea that only an ‘elite few’ support all this activity doesn’t match the scale of what we’re seeing on the ground.
So if prices are consistent and shops are operating across Somalia, that tells you purchasing power is real , and more widespread than assumed.