Somalia

Region: Eastern Africa Regional Economic Communities (REC): CEN-SAD · COMESA · EAC · IGAD

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(To be linked)

• CEN-SAD
• COMESA
• EAC
• IGAD

Somalia’s population is estimated at approximately 19.7 million (2025).

The informal economy is dominant:

• Approximately 82.5% of employment is informal

Key sectors include:

• Livestock trade
• Telecommunications
• Remittance-based activities

Regulatory note: The informal economy functions as a primary survival system, rather than a marginal sector.

Somalia has a plural legal system, combining:

• Statutory law
• Islamic law (Sharia)
• Customary law (Xeer)

Somalia has been a member of the International Labour Organization (ILO) since 1960.

The Decent Work Country Programme (2023–2025) focuses on:

• Institutional reconstruction
• Employment creation
• Economic development
• Strengthening governance structures

Somalia’s labour framework is centred on the Labour Code of 1972, which:

• Provides for:
  • Weekly rest
  • Maternity leave
  • Collective bargaining
  • Prohibition of forced labour and child labour

However:

• Enforcement capacity is extremely limited
• Labour institutions remain underdeveloped
• Social dialogue structures are weak

Trade union rights formally exist, but:

• Representative organisations are fragmented
• Tripartite systems are not fully operational

Regulatory note: Strong “rights on paper”, but severe enforcement deficit.

National Employment Policy (2019)

• Recognises the need to:
  • Strengthen labour institutions
  • Support informal sector workers
  • Develop representative organisations

Somali National Tripartite Consultative Committee (SNTCC)

• Emerging platform for social dialogue

Regulatory note: Policy recognition exists, but implementation remains limited.

• No specific legislation governing domestic workers
• General labour law applies (1972 Labour Code)

Key issues:

• Lack of formal contracts
• Irregular wages
• No social protection coverage
• High vulnerability to exploitation

A new draft Labour Code is under development but not yet enacted.

Regulatory note: Regulatory vacuum with high vulnerability.

Regulation is primarily municipal and informal.

Key features:

• Local authorities regulate permits and locations
• Constitutional basis for municipal control
• Zoning and location restrictions

Requirements:

• Permits issued by municipalities
• Business registration (for formal operations)

Challenges:

• Weak legal protection
• Harassment and confiscation of goods
• Unclear regulatory framework

Regulatory note: Highly decentralised and inconsistent regulation.

Somalia lacks a comprehensive legal framework.

Recent developments:

• Environmental Protection and Management Act (2024)
• Oversight by Directorate of Environment and Climate Change

Emerging initiatives:

• Recycling projects
• Community waste sorting
• Ban on single-use plastics

Regulatory note: Sector is in early-stage regulatory development.

• No specific legislation on remote work
• Labour Code (1972) does not address home-based work

Regulatory note: No formal recognition of remote work.

No specific legal framework exists.

Applicable structures:

• General labour law (limited relevance)
• Business registration system (SBRS, 2022)

Key issues:

• No worker classification framework
• No social protection coverage
• No platform-specific regulation

Relevant frameworks:

• Foreign Investment Law (2015)
• Basic labour protections

Regulatory note: High legal uncertainty and regulatory gaps.

Regulated under:

• Labour Code (1972)
• Provisional Constitution (2012)
• Foreign Employment Act (2015)

Key protections:

• Prohibition of forced labour
• Minimum age provisions

Challenges:

• Weak enforcement
• Child labour risks
• Poor working conditions

Regulatory note: Agricultural sector remains highly informal and underregulated.

Current situation:

• Outdated 1984 Mining Code
• New Mineral and Petroleum Resources Development Bill (2023/2025) pending enactment

Proposed reforms:

• Establish Somalia Mining Authority
• Formalise artisanal mining
• Attract foreign investment

Current reality:

• Legal grey area
• Limited regulation of artisanal mining

Regulatory note: Transition phase toward formalisation.

• No detailed sector-specific legislation
• General business registration required

Constraints:

• Weak infrastructure
• Security challenges
• Fragmented governance

Regulatory note: Sector shaped more by security conditions than regulation.

Highly informal and largely unregulated.

Key features:

• Governed by informal systems and local practices
• Limited state oversight

Some measures:

• Ministry of Trade allows small-scale trade under value thresholds

Regulatory note: Informal trade operates largely outside formal legal frameworks.

• IIAG – Somalia: https://iiag.online/locations/so.html
• Somalia National Employment Policy (2019)
• Somalia Labour Code (1972)
• Environmental Protection Act (2024)