Mogadishu, Somalia — The federal Ministry of Interior, Federal Affairs and Reconciliation has declared public-private partnerships the chosen route to deliver roads, water, power and sanitation in fast-growing cities, even though enabling laws and investor safeguards are still being drafted. Director-General Abdulkadir Elmi Ali said on Sunday that PPP models “build public trust, enhance service delivery, stimulate local economies, create jobs and build resilient and sustainable cities across Somalia,” according to a ministry statement released in the capital. Official statements indicate the announcement is intended to signal strategic direction rather than launch specific tenders.
No projects, finance deals or risk — sharing instruments were attached to the communiqué, and officials have not yet published a draft PPP law or list of bankable ventures.
The government is operating under a three — year, 75 million US dollar trust-fund programme financed by the World Bank that ends this year.
The fund is meant to strengthen procurement, budgeting and regulatory systems before large — scale private capital is sought.
Independent observers say the timing reflects Somalia’s widening infrastructure gap.
The World Bank estimates the country needs an extra 2. 1 billion US dollars of spending each year on transport, energy, water and sanitation, an amount that exceeds the domestic capital budget by a wide margin.
Local reports note that urban populations have doubled roughly every 15 years, straining services in Mogadishu, Kismayo, Baidoa and other hubs.
The 2023-27 National Development Plan lists the same sectors now promoted for PPPs as national priorities. Skepticism remains among possible investors.
The 2024 Sustainable Development Goals report shows that least-developed countries, including Somalia, receive less than three percent of global political-risk guarantees, leaving private operators exposed to contract disputes or revenue shortfalls. Regional officials confirmed that federal member states have not yet been consulted on revenue-sharing or arbitration rules that would apply to future concessions. Further details are expected when the ministry releases its long-promised PPP framework later this year.
Source: sonna.
*Additional reporting by ImNews | Sources consulted: 4*
