Somalia

Somalia benefits from the EU's "Everything but Arms" (EBA) scheme for least developed countries. Somalia is considered a low-income economy according to the current World Bank classification, with a per-capita income of $ 600 (2022). Despite growing overall imports from Somalia, preferential imports have shown considerable fluctuations. Since 2020, the country has not taken advantage of EBA preference.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Somalia flag
group

17,60 M

Population

account_balance
Federal Parliamentary Republic

Government

trending_up

2.40%

GDP Growth

equalizer

3.2% (est)

Inflation

money

$ 10,42 B

GDP

8 ^

Freedomhouse index

5+ -

ITUC Global Rights Index

- -

Environmental Performance Index

Facts about Somalia's economy

Strategic Location

Somalia is strategically well located on the Horn of Africa along major international shipping routes through the Suez Canal and the Red Sea.

Export Products

An important export good for Somalia are live animals (sheep and goats in particular), which are mainly exported to the Arabian Peninsula. Other main export goods are bananas, skins, charcoal and scrap metasesame seeds, lac and natural gums, molluscs, frozen fish, and other fish products.

Trade Partners

Somalia's most important trading partners are China and India, which account for a cobined share of 45% of total trade. Oman and Saudi Arabia are the most important export markets for Somali products. Most imports originate also from China and India.

Economic Structure

The agricultural sector, which is dominated by livestock, contributes the largest share to the GDP. The agricultural sector mainly focusses on palm oil, copra, and cocoa for export. The extensive exploitation of fish and timber in the past led to the depletion of these resources. Somalia possess some mineral resources like bauxite and phosphates. The industrial sector focusses on the processing of agricultural commodities, mainly the production of oil from coconut and other vegetables.

Usage of EBA Preferences

Only a small share of about 1% of total EU imports from Somalia are eligible for EBA preferences. In 2022, Somalia, did not make use of EBA preferences.

Trade with the EU

Total trade with the EU amounted to € 196 million in 2022. With a share of 4.7%, the EU only plays a minor role in Somalia's trade relations.

Somalia and the EU (2022)

Imports from Somalia by product section

Imports from Somalia over time (in € m)

SOMALIA AND THE EU’s GSP

Economic Impact

1%

Only a small share of Somalia's exports to the European market are eligible for EBA preferences.

0%

Somalia currently does not take advantage of EBA preferences.

Preference utilisation and export diversification

Somalia's imports to the EU

Preference Utilisation vs. total eligible imports

The relevance of EBA trade preferences for Somalia remains small. In 2022, Somalia did not take advantage of EBA preferences. Important products imported from Somalia, for example, sesamum seeds, already benefit from zero most-favoured-nation duties.

The largest product sections under EBA

SUSTAINABLE DEVELOPMENT

As a beneficiary of the EBA, Somalia is not obligated to ratify any conventions to be able to benefit from preferential access to the European market. Somalia has ratified 11 out of 15 core international conventions on the protection of human rights and labour standards. Additionally, Somalia has ratified 8 conventions on the protection of the environment and two conventions on good governance.

Core international conventions on human rights and labour standards

Ratified

  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)

EU-Somalia Bilateral Development Assistance

DG INTPA

Access all info about EU-Somalia relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/somalia_en

Opportunities in Somalia

  • An improved security situation opens the opportunity to address domestic economic and social challenges
  • Ongoing projects aim at improving institutional capacities, establishing opportunities for skill development and enhancing Somalia's infrastructure

Contact points