Corruption in Somalia 

If you are a Somalian business or individual one of the challenges, you will face in your everyday life is corruption. According to Transparency International's Corruption Perceptions Index (CPI) for 2023  ​​​​​​​Soma​​​​​​​lia is the most corrupt country in the world.

The table shows the Transparency International's Corruption Perceptions Index (CPI) for 2023.

The CPI defines corruption as 'the misuse of public power for private benefit,' a deep-rooted phenomenon in Somalian society. If you are a Somalian business, you will need significant funds to bribe officials for a government contract, and it helps if you have a family contact to make a transaction happen.

One Somalian entrepreneur described some of the corruption issues associated with running their business, ‘I am usually required to randomly pay large amounts of money at any time to politicians and local militia who will threaten to destroy my business completely if I do not pay. When I try to transport goods, I will always face checkpoints where I’ll be forced to pay a fee'.

Despite efforts to combat corruption, the 2022 CPI revealed a lack of progress. Over 93% of respondents who admitted to paying bribes did not file complaints because there were no meaningful ways to report corrupt practices and little would done if something was reported.

The CPI’s report exposed significant misappropriation of funds, with millions of dollars of international assistance and tax revenues remaining unaccounted for. The dismissal of Somalia's key anti-corruption bodies, including the Anti-Corruption Commission and the Judicial Service Commission, further weakened anti-corruption moves in Somalia.

Transparency International's separate report highlighted Somalia's dire corruption situation, attributing it to decades of violence and instability. The dissolution of anti-corruption bodies and allegations of corruption against President Hassan Sheikh Mohamud has fuelled public concerns, exacerbating economic and humanitarian challenges for Somalis.

The unchecked corruption in Somalia is a significant barrier to the country’s economic development. It significantly increases the cost and time needed to do business and this reduces economic efficiency. If you want to start a business, for example, you will need to have funds to bribe officials to secure the relevant paperwork needed. Corruption is also a barrier to FDI because foreign investors are reluctant to enter markets in Somalia because of corruption. 

Some possible questions for a class

1. How would you define corruption?

2. Think of some of the reasons why corruption might be so high in Somalia.

3. Why do you think corruption is difficult for the Somalian government to deal with?

4. Discuss the significance of corruption as a barrier to economic development in Somalia.