Nairobi — A new World Bank Group report finds that cost-effective and smart development investments, particularly in climate-smart agriculture, resilient cities, disaster risk management, and stronger institutions, could cut projected economic losses for Somalia by half and deliver more stable, productive jobs for its people.
Launched today by the Government of Somalia and the World Bank Group, the Country Climate and Development Report (CCDR) for the Federal Republic of Somalia emphasizes the importance of linking adaptation to employment and productivity, which can enable Somalia to convert resilience investments into job opportunities, advancing its ambition to reach middle-income status by 2060.
“Our focus is to ensure that climate action directly benefits our communities while building a stronger, more resilient Somalia,” said Bashir Mohamed Jama, Minister of Environment and Climate Change for Somalia. “Our priority is to ensure that climate resilience supports economic stability and opportunity for our people. This report provides valuable analysis to guide coordinated action across sectors and strengthen collaboration with our partners”.
Somalia is among the countries most vulnerable to climate shocks. Without urgent action, climate change could reduce Somalia’s GDP by up to 13.5 percent by 2060, compared to a scenario without climate impacts, undermining growth and employment and exacerbating fragility.
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“Building a climate-resilient Somalia is a shared responsibility. Through coordinated leadership, evidence-based policy, and strong partnerships, Somalia can turn climate challenges into opportunities for employment and productivity,” said Hideki Matsunaga, World Bank Country Manager for Somalia. “With smart investments, particularly in resilient rural livelihoods, climate-smart cities, and stronger institutions, Somalia can break the cycle of vulnerability, create jobs, and unlock its development potential.”
Somalia has made important strides in state-building and macroeconomic stabilization, completing the Heavily Indebted Poor Countries (HIPC) Initiative debt relief process in 2023 and acceding to the East African Community in 2024. However, decades of conflict, weak institutions, recurrent droughts and floods continue to erode livelihoods, displace millions, and strain public services. The report emphasizes that integrating climate and development strategies can reduce vulnerability while supporting private-sector-led growth and job creation, shifting from crisis response toward sustained economic opportunity.
Investments in early warning systems, disaster preparedness, water management, and climate-smart agriculture are not only cost-effective, but they are also essential for protecting lives, supporting growth, and sustaining jobs and livelihoods in communities affected by conflict and displacement. Analysis shows that higher-quality growth and targeted climate action can sharply reduce economic losses from climate change compared to a business-as-usual scenario.
At the same time, the report notes that while Somalia will continue to rely on external funding in the near term, over the longer term it will need to take stronger leadership in planning, implementing, and financing climate action. Deepening partnerships with the private sector will be essential to translate resilience investments into durable employment and reduce dependence on humanitarian assistance.
Contacts
In Nairobi: Lydia Gachungi
In Washington: Daniella Van Leggelo Padilla
About Country Climate and Development Reports (CCDRs)
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The World Bank Group’s Country Climate and Development Reports (CCDRs) are new core diagnostic reports that integrate climate change and development considerations. They will help countries prioritize the most impactful actions that can reduce greenhouse gas (GHG) emissions and boost adaptation, while delivering on broader development goals. CCDRs build on data and rigorous research and identify main pathways to reduce GHG emissions and climate vulnerabilities, including the costs and challenges as well as benefits and opportunities from doing so. The reports suggest concrete, priority actions to support the low-carbon, resilient transition. As public documents, CCDRs aim to inform governments, citizens, the private sector and development partners and enable engagements with the development and climate agenda. CCDRs will feed into other core Bank Group diagnostics, country engagements and operations, and help attract funding and direct financing for high-impact climate action.