Potential pathways to Somalia's economic recovery

Somalia's first permanent government in 22 years faces significant obstacles in getting the nation's economy back on track.

• Hundreds of camels wait at the port of Mogadishu on March 8th for export to Saudi Arabia. The Somali government collects about $84 million annually in tax revenue from the port and other resources. [Mohamed Abdiwahab/AFP]
  

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However, in comparison to the corruption rife in previous administrations, President Hassan Sheikh Mohamud's government has so far garnered positive reviews inside and outside the country, and expectations are high that his administration is in a position to jumpstart the economy.
If the government pursues innovative solutions in the telecommunications, agriculture and fishing industries, and reduces risks associated with tapping the country's natural resources, Somalia's economy could see a well-needed lift that would also be a boost for peace and development.
At present, the central government in Mogadishu collects approximately $84 million per year in state revenues sources, such as taxes on seaports and airports. It therefore must rely on direct support from foreign governments as well as local and international non-governmental organisations, and on the approximately $1.6 billion each year in remittances, according to the United Nations. Although the International Monetary Fund recognised the Somali government in April, large-scale loans are not possible until its $352 million in debt is re-financed or cleared.