The economic landscape of the Southwest State is anchored in agriculture, benefiting from fertile lands and marine and natural resources. However, economic development is severely constrained by recurring droughts, security threats, and a lack of infrastructure. These factors not only impede agricultural productivity but also limit access to markets and discourage investment. Thus, the state’s economy remains largely informal, relying heavily on traditional farming practices, which while sustaining a large portion of the population, offers limited growth or innovation.

On the other hand, climate change significantly affects the Southwest State, with increased droughts and floods damaging agricultural productivity and exacerbating food security. This environmental instability not only heightens community tensions but also leads to resource-based conflicts, displacement, and economic instability. These challenges demand urgent attention to mitigate their impact on the state’s development and stability.

Socially, the state is deeply influenced by a complex clan-based structure, which affects governance and community interactions, often leading to interclan conflicts. The challenge is compounded by the presence of a large number of internally displaced persons (IDPs), which strains local resources and complicates social cohesion. Politically, the state is navigating a path towards democratic governance with international support, yet clan politics and insurgent activities by Al-Shabaab make the political environment particularly volatile.

To harness the state’s potential and address its myriad challenges, the policy paper recommends several strategic investments and comprehensive policy implementations. These include developing infrastructure, improving market access, promoting agricultural diversification, leveraging economic opportunities beyond agriculture, fostering job creation, enhancing social services, and increasing international cooperation. By focusing on these areas, Southwest State can promote stability and sustainable economic growth, contributing significantly to Somalia’s broader development goals.

Download the full policy brief here