Key opportunities include a vibrant private sector; a diaspora willing to invest in the country; regional integration; import substitution and export promotion; nascent agricultural, agribusiness, and fishing industries; and a young population.
The civil war also had a devastating effect on institutions and governance capacity. The public financial management system still faces challenges of transparency, ability, and legitimacy, which has delayed the startup and implementation of projects. Somalia remains insecure due to lack of effective law enforcement mechanisms; high unemployment, especially among young people; and incursions by Al-Shabaab and ISIS insurgents, among others.
Key challenges include infrastructure constraints, weak state institutions and capacity, weak public financial management systems, continued insecurity, limited resilience to environmental extremes, and large arrears to international financial institutions. Somalia lacks the infrastructure to provide basic services, including security, health, water, education, energy, and transport because so much infrastructure has been damaged and destroyed by conflict