Somalia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in somalia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Selling to the Public Sector
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The Somali government procures services and goods locally, and almost all the ministries and agencies have procurement departments.  Due to low government expenditures, there are very few large tenders issued.  Although a centralized public procurement authority has yet to be established, the Procurement, Concessions, and Disposal Act 2015 is in place which provides a legislative framework and addresses issues related to procurement, concessions, and disposal of public assets.  The Ministry of Finance handles processes related to procurement, concessions, and disposal through Requests for Proposals.  U.S. companies may explore tendering for public projects, including hardware supply to the security forces and technology provisions.

Somalia is expected to reach the completion point of the IMF’s debt relief process by the end of the year, thus making the country potentially eligible for credits from multilateral institutions to support its development. With the announcement of Somalia’s “Centennial Vision 2060” government tenders are expected to grow significantly.  These tenders may provide opportunities for the supply of goods and services by U.S. companies.  Additionally, the government is expected to continue the implementation of the National Development Plan.  More information on public procurement can be found at the Public Procurement Department of the Federal Ministry of Finance.

U.S. companies bidding on foreign government tenders may also qualify for U.S. government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities.  The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts.  Advocacy assistance can take many forms but often involves the U.S. embassy or other U.S. government agency officials expressing support for the U.S. exporters directly to the foreign government.  Consult the Advocacy Center’s program web page on trade.gov for additional information.

There are several development-partners-funded projects in Somalia that source goods and services.  The following donors are predominant in Somalia: USAID, the World Bank, IMF, and the Africa Development Bank.

Financing of Projects

Under its National Development Plan (NDP-9), Somalia plans to rehabilitate its old infrastructure and build new infrastructure to support its economic growth agenda.  Considering limitations in government budget financing, the Somali government primarily relies on grant support from countries through government-to-government projects.  Infrastructure projects such as the Mogadishu airport, the Mogadishu seaport, the Mogadishu-Afgoye highway, and the Mogadishu-Jowhar highway were built via government-to-government projects.  However, with the expected debt relief by the end of 2023, Somalia may be able to finance some major projects directly.  The government is also encouraging public private partnerships (PPP) to meet key infrastructure needs.  Notable examples of PPP are found in the ICT sector, ports (such as Berbera and Bossaso port with significant investments by DP World), and operations at the Mogadishu Airport.  Three sources of external assistance exist: multilateral, bilateral, and Private Voluntary Organizations (PVOs).  The first category can further be divided into United Nations Organizations and non-United Nations multilateral institutions.

Multilateral Development Banks and Financing Government Sales

Somalia is not qualified to borrow funds from bilateral and multilateral financial institutions through concessional loans and government bonds.  However, the country implements grant projects funded by MDBs such as the World Bank, the African Development Bank, IFC, and others.  The government usually sets up a Project Management Unit but follows the World Bank procurement guidelines for competitive bidding.  The Federal Ministry of Finance has a procurement portal where advertisements are made.  Leading local jobs/ tender advertising websites often take this up and repost it on their platforms.  For more information on doing business with Multilateral Development Banks (MDBs), a Trade Finance Guide is available.  

To remain competitive, bidders must review a checklist of all eligibility requirements mentioned in the tender documents.  It is imperative that a company bidding on any government tender adhere to all the conditions stipulated in the tender documents, no matter how minor the requirement seems.  MDBs have funded roads, electrification programs, education, private sector development, humanitarian assistance, ICT projects, and health projects across the country.  

The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.

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Under its National Development Plan (NDP-9), Somalia plans to rehabilitate its old infrastructure and build new infrastructure to support its economic growth agenda.  Considering limitations in government budget financing, the Somali government primarily relies on grant support from countries through government-to-government projects.  Infrastructure projects such as the Mogadishu airport, the Mogadishu seaport, the Mogadishu-Afgoye highway, and the Mogadishu-Jowhar highway were built via government-to-government projects.  However, with the expected debt relief by the end of 2023, Somalia may be able to finance some major projects directly.  The government is also encouraging public private partnerships (PPP) to meet key infrastructure needs.  Notable examples of PPP are found in the ICT sector, ports (such as Berbera and Bossaso port with significant investments by DP World), and operations at the Mogadishu Airport.  Three sources of external assistance exist: multilateral, bilateral, and Private Voluntary Organizations (PVOs).  The first category can further be divided into United Nations Organizations and non-United Nations multilateral institutions.