Somalia Roundup: Border issues, humanitarian crisis, economic recovery

Humanitarian crisis

Somalia is facing a dire humanitarian crisis amid ongoing threats from the terrorist group Al-Shabaab. The UN is urging international partners to provide funding to meet the increasing demand for lifesaving support. Additionally, the departure of AU forces is underway, but concerns remain about the capacity of Somali security forces to maintain control, Daily News reports. The UN is also urging peaceful resolution of regional tensions between Ethiopia and Somalia.

Somalia, Ethiopia border issues

Somalia's ambassador accuses Ethiopian troops of entering its borders illegally, leading to clashes with local security forces. Ethiopia has thousands of soldiers in Somalia as part of a peacekeeping mission. Somalia requested a postponement of troop withdrawal and relations soured after Ethiopia offered recognition to Somaliland in exchange for a coastline lease, Africa.com reports.

Economic recovery

Saudi Arabia has signed an agreement with the OPEC Fund to support economic recovery in Somalia. The agreement aims to help Somalia overcome its security and financial challenges. According to Alarabiya, Saudi Arabia's efforts align with the IMF and World Bank's initiatives to ease debt burdens on poor countries. The OPEC Fund focuses on meeting basic needs such as food, energy, water, healthcare, and education in low-income countries.

Somaliland and Somalia

Somalia celebrates 65 years of independence amid internal division and security challenges. There is tension between Somalia and Somaliland, and also between Ethiopia and Somalia over a possible naval base. VOA reports that as peacekeepers prepare to leave, concerns remain about the country's ability to handle security, particularly in the face of ongoing threats from al-Shabab. Both regional tensions and internal divisions pose significant challenges for the country.

Private sector growth

Private sector vital for resilient growth in Somalia, accounting for 95% of jobs. However, private sector activity is mainly in commerce and non-tradable services, limiting overall productivity and job generation. The World Bank recommends reforms to establish equitable institutions, promote private participation, and improve selected value chains. Private investment opportunities in energy and finance are seen as feasible and critical for creating markets in the near term. Fostering a vibrant and inclusive private sector is crucial for sustainable economic growth and job creation in Somalia, according to Mirage News.