2025, Vol. 7, Issue 12, Part A

Author(s): Ismail Ibrahim Abdullahi and Amina Omar Mohamud

Abstract: Productivity and investment in agriculture contribute to economic growth, food security, and poverty reduction in developing countries. This paper examines the factors influencing the decline of agricultural investments in Somalia, specifically focusing on the farming sector in the Lower Shabelle region. By employing a multi-methods design including surveys of 70 respondents, qualitative interviews, and a detailed analysis of the data collected, the study identified climate change and environmental degradation, conflict and insecurity, and limited access to agricultural finance as the primary causes of decline. Repeated droughts, desertification, and land title disputes have damaged the ability of farmers to produce and discouraged investment in the sector. Due to high perceived risk, limited collateral and inadequate government backing, commercial banks rarely provide loans to the sector. Recommendations for policymakers include strengthening institutional frameworks, expanding credit guarantees and insurance to address risk, investing in climate resilience, and increasing access to financial services for smallholder farmers. Addressing these challenges will be necessary for reviving the agricultural sector in Somalia and supporting sustainable development in the country.

DOI: 10.33545/27068919.2025.v7.i12a.1765

Pages: 05-07 | Views: 17 | Downloads: 7

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