SMEs Policy

Small Medium Enterprises (SMEs) play a crucial role in the economy, driving economic development in countries. In Somalia, they are the primary economic contributors, providing employment opportunities for the youth and contributing significantly to the country’s economy and production.
Despite some efforts by international sponsors and businessmen to promote the growth of SMEs in Somalia, there was no specific policy supporting their development. These efforts were not coordinated and lacked a comprehensive policy framework.
Recognizing this gap, the Ministry of Commerce and Industries in the FRS has taken up the responsibility of developing a policy to support and promote the growth of SMEs. This policy aims to align Somalia’s direction towards fostering a conducive business environment for SMEs.
The objectives of this policy include the establishment of a clear and effective policy framework, providing full support to the development of SMEs to boost the economy and generate employment. It also seeks to safeguard the growth and sustainability of SMEs by offering economic support, technical skills, and appropriate policies tailored to their development.
Additionally, this policy aims to foster collaboration between the federal and federal member state levels, promote research, innovation, and productivity improvement, encourage public-private partnerships, and create an environment that encourages innovation and business activities within and across regions.
The formulation of this policy involved comprehensive consultations with businesspersons representing SMEs, as well as experts and scholars specializing in economic development. The Policy has been finally approved by the Somali Cabinet Ministers, of the Federal Government of Somalia.