Impact of Global Food Prices on Somalia’s Economy and Households
Somalia’s economy has long been vulnerable to fluctuations in global food prices, and in 2025, this trend continues to challenge millions of households across the country. Rising international prices of wheat, rice, and fuel have created ripple effects in both urban and rural markets.
Dependence on Imports
Somalia imports nearly 90% of its staple grains. The global food supply disruptions caused by regional conflicts and shipping costs have led to price spikes of over 30% since mid-2024. For many families, basic food items such as flour, sugar, and rice have become unaffordable.
Government Measures
In response, the Ministry of Finance and Central Bank of Somalia introduced targeted subsidies and temporary tax exemptions on imported grains. Additionally, the government is working with private traders to improve port logistics and reduce delays in customs clearance.
International Response
The World Food Programme (WFP) expanded its emergency food distribution, reaching more than 2 million beneficiaries in the first quarter of 2025. The International Monetary Fund (IMF) has also pledged to support fiscal reforms to stabilize the Somali shilling.
Local Solutions
Community-based farming cooperatives are gaining traction. In Lower Shabelle, smallholders supported by NGOs are cultivating drought-resistant crops to lessen import dependence. Markets in Baidoa and Beledweyne are slowly regaining stability thanks to better domestic supply chains.
Conclusion
While Somalia remains exposed to global price shocks, new agricultural and policy reforms show promise. If sustained, these efforts could pave the way for food security and economic resilience in the coming years.