NAIROBI, March 5, 2026 — The World Bank Group’s latest report emphasizes that targeted, cost-effective investments in climate-smart agriculture, resilient cities, disaster risk management, and stronger institutions could cut Somalia’s projected economic losses by half while creating stable, productive jobs. Launched jointly with the Somali government, the Country Climate and Development Report (CCDR) highlights how linking climate adaptation to employment and productivity can transform resilience efforts into sustainable economic opportunities, supporting Somalia’s ambition to reach middle-income status by 2060.
Somalia remains highly exposed to climate shocks, and without timely action, climate change could reduce its GDP by up to 13.5 percent by 2060, threatening growth, employment, and social stability. The report stresses that investments in resilient rural livelihoods, climate-smart urban planning, and institutional capacity can break cycles of vulnerability, generate jobs, and unlock long-term development potential.
The country has made important strides in state-building and macroeconomic stabilization, including completing the Heavily Indebted Poor Countries (HIPC) debt relief in 2023 and joining the East African Community in 2024. Despite these gains, decades of conflict, weak governance, and recurrent droughts and floods continue to displace millions and strain public services. Integrating climate and development strategies can reduce vulnerability while promoting private-sector-led growth, shifting the focus from reactive crisis management toward sustained economic opportunity.
Investments in early warning systems, disaster preparedness, water management, and climate-smart agriculture are both cost-effective and essential for protecting lives, sustaining livelihoods, and supporting economic growth, particularly in communities affected by conflict and displacement. Analysis shows that such targeted climate action can substantially reduce economic losses compared to a business-as-usual approach while fostering higher-quality, resilient growth.
While Somalia will rely on external funding in the near term, long-term success depends on strengthened domestic leadership in planning, implementing, and financing climate action. Expanding partnerships with the private sector is crucial for converting resilience investments into durable employment and reducing dependence on humanitarian aid.
The World Bank Group’s CCDRs offer diagnostic guidance for integrating climate and development priorities, identifying strategies to lower greenhouse gas emissions, enhance adaptation, and advance broader development objectives. These reports support governments, the private sector, and development partners by attracting financing and directing investments toward high-impact climate action in Somalia and other vulnerable nations.
