The Current State of Construction in Somalia Opportunities and Challenges

 

In the heart of Mogadishu, construction noises are becoming part of the city’s soundtrack. Cranes, cement mixers and the hammering of nails echo through neighbourhoods once marked by silence and rubble. For many Somalis, this sound signals something important: a country rebuilding itself one brick at a time.

Somalia's construction sector is experiencing a quiet but powerful resurgence. With the return of diaspora investors, urban migration and a growing demand for housing, real estate and infrastructure, construction is now one of the most active and vital industries in the country. But the path to rebuilding Somalia is far from smooth. The sector faces a unique blend of opportunities and challenges that require attention, planning, and collective effort.

A Nation Rebuilding from the Ground Up

After decades of civil war and instability, much of Somalia’s infrastructure was either destroyed or abandoned. Roads fell apart, bridges collapsed, and public housing deteriorated. For many years, construction in Somalia was limited to emergency shelters or small-scale projects by NGOs and the United Nations.

But things began to change in the past decade. Cities like Mogadishu, Hargeisa, and Garowe began to see a slow but steady growth in urban construction. Diaspora Somalis returned with money, experience, and a desire to rebuild homes, businesses and communities. The private sector, largely driven by small to mid-size contractors and local entrepreneurs, began to fill the gap left by weak public institutions.

Opportunities in Somalia’s Construction Sector

Despite the ongoing political and security issues, there are numerous reasons to be optimistic about the future of construction in Somalia:

1. High Demand for Housing

Urban population growth is surging in cities like Mogadishu and Hargeisa. Somalia has one of the fastest urbanising populations in Africa. People are moving to cities in search of better lives but they need places to live. Real estate developers are struggling to meet the demand for affordable housing. This presents a massive opportunity for construction companies, architects and investors.

In newer districts like Darussalam and Garasbaaley, entire neighborhoods are sprouting up, complete with paved roads, perimeter walls, and water tanks often built by private investors targeting middle-class families.

2. Diaspora Investment

The Somali diaspora is a key driver of construction. Every year, the diaspora sends back over $ Millions  in remittances and a growing portion of that is now being directed toward real estate and infrastructure projects. Whether it's building a rental apartment, a hotel, or a retail plaza, diaspora-backed projects are everywhere.

Many families invest in "income homes" buildings with rental units on the ground floor and a residence on top. These offer both shelter and financial returns.

3. Job Creation and Skills Development

Construction is labor-intensive and has become a vital source of employment for young Somalis. From bricklayers and carpenters to site supervisors and civil engineers, thousands are finding work on construction sites.

In cities like Bosaso and Kismayo, vocational centers now offer construction-related training programs in masonry, plumbing, electrical work and welding. This is not only helping youth gain practical skills but also contributing to safer and higher-quality building standards.

4. Infrastructure Development

As Somalia continues to stabilize, infrastructure projects are slowly picking up. Roadworks, bridge repairs, and airport upgrades are being initiated through government partnerships with international donors. The African Development Bank, Turkey’s TIKA agency, and the World Bank have funded several key infrastructure initiatives in recent years.

One notable example is the Mogadishu-Afgoye Road rehabilitation project, which is considered a critical artery for both humanitarian and economic activities.

The Challenges: What’s Holding the Sector Back?

Despite this progress, Somalia’s construction sector remains one of the most difficult environments to operate in. Several key challenges continue to slow or even derail development.

1. Lack of Regulation and Building Codes

There is currently no unified national construction code in Somalia. Most buildings are constructed based on contractor experience and client budgets, rather than engineering standards. This leads to safety concerns, poor structural integrity and in some cases, building collapses.

A tragic example occurred in Hamar Weyne in 2022, where a poorly constructed three-story building collapsed during heavy rain, killing two people. It shocked the local community and raised questions about the lack of oversight in building practices.

2. Land Disputes and Ownership Issues

Land titles are a frequent source of conflict. Many plots in urban centers are sold without proper documentation or sold multiple times to different buyers. The absence of a reliable land registry makes large-scale development risky and time-consuming.

Some investors have lost money after purchasing land only to be dragged into years-long legal disputes. This discourages both locals and diaspora from investing in larger construction projects.

3. High Cost of Materials

Almost all construction materials from cement and steel to tiles and plumbing fixtures are imported. This drives up prices significantly. The lack of domestic manufacturing means developers are at the mercy of global prices and shipping delays.

For instance, the price of a 50 kg bag of cement in Mogadishu can range between $7 and $9 nearly double what it costs in neighbouring Ethiopia or Kenya.

4. Insecurity and Instability

Security remains a critical concern, especially in southern and central Somalia. Projects in areas near conflict zones face the risk of attacks, extortion, or being halted altogether. Developers often factor in the cost of security when pricing their projects, further increasing the cost of construction.

What Needs to Be Done?

To overcome these challenges and unlock the full potential of the sector, several steps need to be taken:

• Develop and Enforce Building Codes: A national construction code should be introduced with training programs for local contractors and inspectors.

• Digital Land Registry: A transparent, accessible land registration system would reduce disputes and improve investor confidence.

• Invest in Local Manufacturing: Somalia should begin producing basic materials like cement, and steel rebar domestically to reduce costs.

• Public-Private Partnerships: The government should work with private developers and the diaspora to co-fund affordable housing and infrastructure projects.

• Expand Vocational Training: More investment in construction-related skills will ensure safety, employment, and long-term industry growth.

Final Thoughts

Somalia’s construction sector reflects the broader story of the country full of hope, energy and resilience, but still navigating serious obstacles. There’s a clear demand for housing, infrastructure and economic opportunity. Somali youth are eager to learn. The diaspora is willing to invest. What’s needed now is coordination, vision, and leadership.

At BuildHub Somalia, we believe construction is more than bricks and mortar. It’s about building trust, building livelihoods and building a future. If we get it right, the next decade could see Somalia’s cities transformed not just structurally, but socially and economically.

The foundation is already there. Let’s build on it