Since 1991, the rural population in Somalia has declined from 70% to 53% by 2020.

[1] Many former rural
residents now live in IDP camps, facing limited prospects of integration or return due to the absence of
large-scale resettlement programs and ongoing climate challenges. As a result, these displaced individuals
rely on international humanitarian aid, with 3.9 million people—24% of the population—living in camps by
2022.

[2] Rapid urbanization has also increased food demand, while declining domestic agricultural
productivity has led to a heavy dependence on food imports, reaching $1.19 billion in 2021.

[3] The Somali economy is based on traditional, primary productive sectors. Livestock and agriculture account
for 60% of the country’s Gross Domestic Product, 80% of employment, and 90% of exports

[4]. The agriculture sector has great potential to provide food security, create employment, generate income,
increase exports, and contribute to economic prosperity for the country. However, this potential is
hampered by low levels of productivity. Key factors inhibiting the productivity of the sector include high
vulnerability to climate change, insecurity, flooding, drought, poor product quality, inadequate skills and
capacity of producers, the private sector actors, and the limited government efforts to produce, participate
in, and strengthen the trade and production environments

[5]. Labor force participation rates are exceptionally low, with significant gender gaps. Only one-third of men and 12% of women participate in the labor market. Almost half of those employed are living below the poverty line, indicating that jobs are of low productivity.