Somalia’s infrastructure was severely degraded by decades of conflict and neglect, leaving a nation with dilapidated roads, limited electricity, and poor basic services. Despite recent improvements in ports and telecommunications, the country’s physical infrastructure remains among the least developed in the world, imposing significant costs on the economy and public well-being. The road network is a prime example. Roughly 21,800 kilometers nationwide; only about 2,860 km (13%) are paved, and many of those have deteriorated due to a lack of maintenance.
Large swathes of rural Somalia are accessible only by dirt tracks that become impassable during the rainy season, hampering trade and humanitarian access. Urban infrastructure, such as water supply, sewage, and public transport, is also extremely limited outside a few city centers. Compounding these gaps is the extremely high cost of energy. Somalia has some of the most expensive electricity in the world, with tariffs ranging from about $0.40 to $1.00 per kilowatt-hour, compared to an African continental average closer to $0.15. This is mainly due to reliance on small-scale diesel generators run by private providers in the absence of a national power grid. Such high energy costs are crippling for businesses and unaffordable for many households, contributing to low access.
Only around half of Somalia’s population has access to electricity (about 80% of urban households, but only 20-25% of rural households)[49], and even those with access often get intermittent supply. The twin challenges of inadequate infrastructure and costly energy are interrelated and pose a serious bottleneck to Somalia’s economic recovery and quality of life improvements.
Causes of Infrastructure and Energy Deficits
Several factors explain Somalia’s deep infrastructure gaps. Foremost is the legacy of state collapse and conflict: from 1991 until the 2010s, virtually no public investment was made in infrastructure, and many existing facilities were destroyed. Roads, bridges, and power stations were casualties of war or fell into disrepair. The fledgling governments of the past decade have had limited budgets and competing security priorities, so capital investments remained low. Another factor is Somalia’s geography and low population density – connecting far-flung communities across arid regions requires significant capital, which was not available.
Additionally, infrastructure projects often depend on external financing. Still, Somalia’s fragile status and debt arrears historically made it ineligible for many large-scale projects until recently. On the energy side, the collapse of the national electricity utility (the pre-war ENEE) led to a patchwork of private power providers emerging in different towns. These providers typically use imported diesel fuel to run generators, which is an expensive generation method, especially on a small scale.
The lack of a national grid means there are no economies of scale or load-sharing between regions. Moreover, fuel has to be transported by road from the port to various towns, adding to the cost. Until a few years ago, renewable energy was scarcely used despite Somalia’s abundant solar and wind potential. The regulatory environment also contributes; without an effective regulatory authority, there has been no mechanism to standardize tariffs or force efficiencies among power companies. Each company often held a local monopoly in its town, setting high prices. Inadequate investment is both cause and effect – high risks and uncertain regulations deter significant investment in modern power infrastructure, and similarly in roads and ports.
Corruption and mismanagement in past donor-funded projects (e.g., roads built but not maintained) also contributed to the lack of sustained infrastructure. Climate and environment further strain infrastructure: heavy seasonal rains wash out poorly built roads and bridges, and extreme heat can shorten the life of pavements not designed for such conditions. Lastly, ongoing insecurity in some areas means construction crews need expensive security measures, or that some corridors are hard to work on, delaying a unified infrastructure network.
Impact: Economic and Social Costs
The consequences of Somalia’s infrastructure and energy deficiencies are dire for economic development and human welfare. High transport costs and poor connectivity hinder internal trade and integration. Farmers in remote areas struggle to get their produce to markets before it spoils, and pastoralists cannot easily truck livestock to seaports, leading to losses and low farm-gate prices. For consumers, poor roads mean higher prices for goods. It costs more to import or move items, and those costs are passed on to households.
Some regions are virtually cut off during rainy seasons due to impassable roads, exacerbating food insecurity when aid can’t reach villages or local markets run out. The lack of reliable roads and power is a significant deterrent for industries. Manufacturing or processing businesses require consistent electricity and transport to import raw materials and export finished goods; in Somalia, these conditions are not met, so such industries barely exist. Consequently, the economy remains reliant on trade and low-value activities, missing out on diversification and job creation that robust infrastructure could enable. High energy costs make Somali businesses very uncompetitive. For example, Somali manufacturers, or even icemakers, pay many times more for power than their counterparts in Ethiopia or Kenya, effectively pricing them out of regional markets.
A World Bank enterprise survey would likely find power to be cited as the number one constraint by Somali firms. Socially, infrastructure gaps affect access to essential services: without roads, rural populations have difficulty reaching hospitals or schools, and ambulances can’t get patients quickly. Electricity access, or lack thereof, also has profound social implications. Areas without power remain in the dark after sunset, limiting educational and economic activities. Health clinics without reliable power cannot run cold chains for vaccines or life-saving equipment. The urban-rural divide is stark: cities like Mogadishu have some paved streets and privately maintained generators, while many rural towns have none, contributing to inequality and urban migration. Furthermore, insufficient infrastructure undermines state legitimacy.
Citizens judge government performance by tangible improvements, such as roads and lighting; persistent gaps can breed frustration or apathy toward authorities. On the environmental side, reliance on diesel generators means higher carbon emissions and pollution. The sound of generator engines and the fumes are familiar in Somali cities, affecting air quality. Lastly, the infrastructure deficit intersects with security: poor roads and limited telecom coverage make it harder for security forces to respond rapidly to threats or to assert control in remote areas, thereby allowing insurgents to operate more freely. Conversely, building roads and extending electricity could enhance governance and stability by expanding the state’s presence.
Conclusion and Recommendations
In summary, Somalia’s inadequate infrastructure and prohibitively expensive energy are binding constraints on its development. These challenges are surmountable but will require sustained investment, strategic planning, and reforms. Encouragingly, Somalia’s recovery of sovereign debt eligibility and improved stability in some areas have opened the door for new infrastructure projects (for instance, road corridors financed by development banks are now in preparation). Likewise, the rapid decline in renewable energy costs presents an opportunity for Somalia to leapfrog into clean energy solutions that could drastically cut power costs over time. The coming years are critical to lay the foundation – literally – for Somalia’s future growth and to ensure that growth is inclusive across regions.
Policy Recommendations:
- Prioritize Infrastructure Development through Public and Public-Private Investments – The Somali government, in collaboration with international partners, should identify and focus on high-impact infrastructure projects that connect the country and lower business costs. Key priorities include rehabilitating and paving major road corridors, such as those linking the capital, Mogadishu, to other economic hubs (Baidoa, Kismayo, Beledweyne, Garowe) and connecting regional capitals.
- Expand Renewable Energy and Reduce Electricity Costs – Tackling the high cost of energy requires a two-pronged strategy: increase supply and improve regulation/coordination of the power sector. Somalia has high solar insolation and significant wind corridors, particularly along the coast. The government should facilitate investment in solar and wind farms by removing regulatory uncertainty and, if necessary, providing land or tax incentives. Encouragingly, some private firms and development projects have started installing hybrid mini grids, which have begun lowering tariffs to $0.30 or less.
Improve Infrastructure Governance and Seek Innovative Financing – Ensuring that investments translate to outcomes requires good governance. Anti-corruption measures in procurement of infrastructure projects are vital – independent oversight or third-party monitoring of big projects can prevent funds from being siphoned and projects from stalling. Community involvement in infrastructure can also enhance accountability and upkeep. Somalia should also tap into innovative financing for infrastructure where possible: diaspora bonds or infrastructure funds could allow Somalis abroad to invest in nation-building projects.