Somalia is rich in natural resources, including minerals, fossil fuels, fisheries, and agricultural land. The country has valuable mineral reserves, including uranium, iron ore, tin, gypsum, bauxite, copper, and salt.
The gypsum deposits near the port city of Berbera are among the largest in the world. Somalia also has large oil and natural gas reserves, especially in offshore areas like the Gulf of Aden and the Arabian Sea.
These resources have great potential for future energy production and export. With a 3,333 km coastline, the longest in mainland Africa, Somalia enjoys some of the richest fishing grounds on the continent.
Tuna and other fish species are in high demand and have opportunities for international trade. Agriculture and livestock are also key parts of the economy.
Somalia exports camels, sheep, and cattle to nearby countries. Major crops include sorghum, maize, and cash crops like sesame seeds.
In 2021, natural resources contributed about 11.24% of the country’s GDP. However, political instability, lack of infrastructure, and limited investment have slowed down the development of these sectors.
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Somalia’s Natural Resources And Their Locations
Here’s a list of natural resources that have been found in Somalia and their locations:
| Natural Resources | Locations |
|---|---|
| Uranium | Galguduud and Bay regions |
| Iron Ore | Burco and Hargeisa regions |
| Gypsum | Berbera |
| Oil and Gas | Gulf of Aden, Arabian Sea, Puntland region |
| Copper | Kismayo region, Lower Jubba |
| Tin | Mudug and Nugaal regions |
| Bauxite | Middle Juba and Gedo regions |
| Salt | Hafun Peninsula, northeastern coast |
| Fisheries | Indian Ocean coastline |
| Agricultural Land | Shabelle and Juba River valleys, fertile highlands in Bay and Bakool regions |
Discoveries Of Somalia’s Natural Resources
Somalia is rich in natural resources, though many remain undeveloped due to years of political instability and limited infrastructure.
One of the most notable discoveries is uranium, found in the Galguduud and Bay regions during the 1980s. These reserves are considered substantial. Iron ore has long been known in Burco and Hargeisa but has yet to be fully explored.
Berbera is home to one of the world’s largest gypsum deposits, estimated at around 13 million tons. Copper has been located near Kismayo, while tin is found in the Mudug and Nugaal regions.
Oil and gas exploration began in the 1960s and expanded in the 1980s with companies like Conoco and Range Resources. Notable reserves have been seen offshore in the Gulf of Aden and the Arabian Sea.
Recent studies suggest Somalia may have over 100 billion barrels of oil, placing it among the most promising untapped regions globally.
Somalia’s 3,333 km coastline is rich in marine life, including tuna and lobster. While these resources have been used for generations, commercial fishing is underdeveloped. The fertile lands along the Shabelle and Juba rivers have supported agriculture for centuries.
Sorghum and maize are traditional crops, while bananas, introduced in the third century CE, became major exports by the 20th century. Other resources include small-scale mining of gemstones and minerals like niobium, granite, marble, and quartz.
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Viability Of Somalia’s Natural Resources
Somalia’s natural resources have great potential, but their viability depends on key factors like political stability, infrastructure, and governance.
Offshore oil reserves are estimated at over 100 billion barrels, making Somalia one of the most promising untapped oil regions globally.
Exploration was disrupted by past conflicts, but recent partnerships with Turkey have renewed interest. However, risks like piracy, weak infrastructure, and changing global energy trends pose challenges.
Progress is being made, with surveys underway and drilling expected soon. The country also has rich mineral deposits, including uranium, gypsum, iron ore, and copper.
Gypsum near Berbera is promising. Yet, most mining remains small-scale due to poor infrastructure and a lack of investment.
Agriculture and livestock are the backbone of the economy, employing 80% of the population. Exports of sheep, goats, and camels bring in most of the country’s foreign income.
Despite its viability, issues like land degradation and climate change threaten long-term productivity. Somalia’s coastline has vast fishing opportunities, with an estimated 1.8 million tons in sustainable catch potential.
Tuna is a key asset. However, the sector is held back by limited facilities and illegal foreign fishing. In addition, Somalia is a major producer of frankincense and myrrh, which are harvested using traditional, sustainable methods. With steady global demand, this niche sector is highly viable and could be expanded for more economic gain.
Export Potential of Somalia’s Natural Resources
Somalia has vast untapped natural resources with strong export potential. While some sectors are already contributing to trade, others remain largely undeveloped.
1. Oil And Gas
Somalia has offshore oil and gas reserves estimated at over 30 billion barrels. Though no exports have begun, successful exploration could generate massive revenues. Its location near major importers like Saudi Arabia and India strengthens export potential.
2. Minerals
Gypsum is Somalia’s main mineral export, with over 13 million tons of high-quality reserves. The country also has large deposits of uranium, copper, and iron ore.
Exporting these could position Somalia as a major global supplier. Still, issues like poor infrastructure and illegal mining must be addressed.
3. Agriculture
Agricultural exports, including sesame seeds and bananas, also support the country’s economy. In 2024, $67.5 million was invested in this sector. Expanding supply chains and sustainable farming could boost exports.
3. Livestock
Livestock is Somalia’s top export, making up 34.8% of total exports. The Gulf countries are the main buyers. Expanding to East Asia and improving veterinary services could drive further growth.
4. Fisheries
Despite a rich coastline, fisheries contribute just 5% to exports. With better facilities and marine protection, the sector could grow rapidly, especially with the high global demand for tuna and lobster.
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Economic Impact Of Somalia’s Natural Resources
Somalia’s natural resources are essential to its economy, supporting livelihoods, boosting GDP, and offering potential for future growth.
Here’s a look at their economic impact.
1. Contribution To GDP
According to World Bank data, natural resource rents, including oil, gas, minerals, and forests, made up about 11.24% of Somalia’s GDP in 2021. This number was higher in past years, peaking at 17.67% in 2016.
However, agriculture is the largest contributor to GDP, accounting for over 70%. Livestock alone contributes around 40% and is the country’s biggest export earner. Somalia also has large oil reserves in Puntland, but these are untapped as commercial production has not yet started.
2. Employment
Natural resources are a major source of jobs in rural and coastal areas. Agriculture and livestock support about 80% of Somalia’s population.
Coastal communities depend on fishing, supported by the country’s 3,333 km coastline, though the sector is still underdeveloped. Mining is mostly small-scale and provides few jobs, but future development could increase employment significantly.
3. Fiscal Revenue Generation
Natural resources contribute to government revenue through taxes, royalties, and rents. Historically, resource rents have added about 11% of GDP in fiscal terms.
Agriculture and livestock also generate revenue through export taxes and licensing fees, with livestock exports alone earning over $377 million in 2023.
Oil and gas have not yet contributed, but exploration and the formation of the Somali Petroleum Company may change that.