Housing Finance in Somalia

Overview

This profile is also available in French here.

To download a pdf version of the full 2021 Somalia country profile, click here.

After 20 years of civil war, Somalia is a fragile state, decades of civil war have resulted in almost 2.9 million internally displaced persons (IDPs) living in informal settlements with no access to basic services. In Mogadishu alone, about 480 informal settlements could be found in and around the city in 2018. In 2020, Somalia’s urban population made up 45.5% of its total population and its urban growth rate (2015-2020) was 4.23%. If this trend continues, by 2030 another 4.5 million Somali will be packed into the already crowded urban environment.

A Country Preparedness and Response Plan (CPRP) was devised in March 2020.  The CPRP identifies IDPs, the elderly, and the urban poor as the most affected and at-risk population groups. The CPRP objectives in 2020 were to support actions to mitigate the indirect but immediate humanitarian consequences of the pandemic.

In March 2021, 270 humanitarian actors were active in all 18 regions of Somalia supporting 1.4 million Somalis in the form of food, nutrition, health, water and sanitation, and hygiene, shelter and non-food items, protection-camp coordination, and management and education.  Seventeen organisations were involved in providing shelter and   72   organisations provided water, sanitation, and hygiene services.

Somalia’s Gross Domestic Product at current market prices in 2020 was US$6,965 million and US$471 per capita decreasing by 0.3% in 2020 from 2019. The economy is projected to grow 2.9% in 2021. The contraction in the economy was largely due to the COVID-19 pandemic, lack of foreign direct investment, locust invasion, bans on livestock exports, drought, and flooding.  Per capita consumption decreased by 0.6% in 2020, mainly because of COVID-19 and the decrease in non-food products.  Somalia remains heavily reliant on imports at 84% of its GDP. The annual inflation rate decreased from 4.7% in 2019 to 4.11% in 2020. On 25 March 2020, the IMF and World Bank’s International Development Association (IDA) approved Somalia’s eligibility for debt relief under the Heavily Indebted Poor Countries (HIPC) initiative.  On 24 March 2021, the IMF granted additional assistance under HIPC of approximately US$0.97million. This will allow Somalia’s debt to be further reduced over the next two years. Given the significant amount of aid Somalia has received over the past year, this is a good indicator that the country is reintegrating into the international community. COVID-19 continues to pose a challenge in Somalia, but the country is benefitting from the COVAX program supporting the procurement of vaccines, with over 410000 doses received in August 2021

Find out more information on the housing finance sector of Somalia, including key stakeholders, important policies, and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2021 edition, which has up-to-date profiles for 55 African countries.

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