By Shaila Khan

Somalia's story is often told through the lens of conflict, fragility, and humanitarian need. Yet that narrative overlooks one of the country's greatest assets: its people. Across the country, entrepreneurs continue to build businesses despite insecurity, young people teach themselves digital skills, women create enterprises that sustain households, and the private sector has become one of the strongest pillars of the economy.

The question is no longer whether Somalia can develop. The real question is: Can Somalia leapfrog traditional development pathways by embracing Artificial Intelligence (AI), digital innovation, and entrepreneurship?

I believe the answer is yes.

Why Somalia should build an AI Hub

For decades, development efforts in Somalia have focused on addressing critical gaps in infrastructure, institutions, electricity, security, finance, and education. These priorities remain essential. Yet Somalia’s next chapter does not have to be defined solely by what the country lacks. It can also be shaped by what it can build. Artificial intelligence offers a unique opportunity because, unlike traditional industries, it does not depend on massive factories, extensive physical infrastructure, or vast natural resources. Instead, it relies on ideas, connectivity, skills, partnerships, and the willingness to innovate. For Somalia, with one of Africa’s youngest and most entrepreneurial populations, AI represents far more than a technological advancement—it represents a new pathway for economic transformation, job creation, and inclusive development.

Looking beyond the challenges

Somalia undeniably faces significant challenges. A rapidly growing youth population creates both a tremendous demographic opportunity and an urgent need for jobs. Women continue to face barriers to finance, technology, markets, and formal employment, while infrastructure gaps, limited access to reliable electricity, climate shocks, and insecurity increase the cost of doing business. However, these challenges tell only one side of the story. Across Mogadishu, Hargeisa, Bosaso, Kismayo, Garowe, and other cities, a different reality is already emerging. Every time I visit a startup hub or meet a young entrepreneur, I am reminded that innovation in Somalia is already happening. Fintech startups are expanding financial inclusion, coding academies are equipping young people with digital skills, freelancers are serving international clients, women-led enterprises are creating innovative businesses, telecommunications companies are connecting millions, and software developers are building solutions for local and global markets. None of these successes waited for perfect conditions—they started with determination, creativity, and the courage to act.

The AI revolution is changing the rules

Historically, countries-built wealth through natural resources, manufacturing capacity, strategic ports, and large industrial sectors. The AI economy is changing that equation. Today, value can increasingly be created through data, software, creativity, knowledge, innovation, and digital services. These are not assets reserved for wealthy nations; they are assets that can be developed anywhere talent exists. 

Somalia already possesses many of the ingredients needed to participate in this new economy. It has a young population eager to learn and a strong culture of entrepreneurship. Its diaspora connects the country to global markets and knowledge networks. Digital financial services are widely used, and a growing technology ecosystem is beginning to emerge. The foundation may not be perfect, but it is strong enough to begin.

Why an AI Hub matters

An AI Hub could become the platform that connects these emerging strengths into a coherent national ecosystem. It could help develop digital skills, support startups, foster innovation, attract investment, strengthen research partnerships, and create pathways for young people and women to participate in the global digital economy. More importantly, it could shift national conversation from managing constraints to unlocking opportunities. Somalia does not need to wait until every challenge is solved before embracing the technologies of the future. By investing in human potential, innovation, and digital capabilities today, the country can position itself to compete in an economy where ideas matter more than geography and talent matters more than physical assets. UNDP Somalia has already begun laying groundwork for this shift, launching a national digital readiness assessment to guide the country's digitalization path.

AI for development

AI's greatest value for Somalia lies in solving everyday problems. In agriculture, it can help predict droughts and connect farmers directly with buyers. In health, it can power telemedicine and Somali-language AI tutors for students who have never had access to a qualified teacher. In government, it can make tax collection and public services faster and more transparent. This is not about replacing people, it's about making them more productive.

From local businesses to global markets

Somalia's SMEs do not need sympathy—they need access to markets, information, and tools that help them compete. Thousands of Somali businesses already produce high-quality products and services, from coffee, sesame, frankincense, myrrh, honey, fish, and leather to fashion, technology, and creative services. Yet many remain invisible beyond local and regional markets. 

AI can help bridge that gap by reducing the cost of accessing global markets and improving business efficiency. Multilingual websites, AI-powered digital marketing, automated bookkeeping, customer analytics, market intelligence, and export documentation tools can help SMEs reach new customers, understand market opportunities, and connect with international buyers. 

A small enterprise in Mogadishu, Hargeisa, Kismayo, or Bosaso can use the same digital tools as much larger companies to spot new customer segments, understand buyer preferences, prepare export documentation, and reach markets once out of reach. In the digital age, success is no longer determined by the size of a business, but by how effectively it uses knowledge, technology, and innovation.

Young people don’t need to leave to succeed

For generations, opportunity was often associated with migration—the belief that success could only be found elsewhere. But in today’s digital world, opportunity is increasingly defined by connection rather than location. With access to technology, skills, and global networks, young Somalis can build meaningful careers as AI trainers, data annotators, software developers, prompt engineers, cybersecurity specialists, digital marketers, cloud professionals, and online consultants without leaving their communities. The rise of remote work and digital platforms has demonstrated that geography is becoming less important in determining economic opportunity. Companies now hire talent from anywhere, allowing skilled professionals to work for global clients while contributing to their local economies. This shift creates a historic opportunity for Somalia’s youth to participate in the global digital economy, earn competitive incomes, and drive innovation from home. In the digital age, talent no longer needs to travel physically—talent can travel digitally.

Harnessing the diaspora for innovation and growth

Somalia’s diaspora is one of the country’s most valuable yet underutilized assets. Spread across Europe, North America, the Gulf, and Africa, millions of Somalis have developed expertise as engineers, professors, entrepreneurs, investors, AI specialists, doctors, and researchers. Beyond the billions of dollars they contribute annually through remittances, the diaspora represents a vast reservoir of knowledge, innovation, and global networks that can accelerate Somalia’s development. An AI Hub could provide a structured platform to harness this potential—connecting diaspora professionals with local institutions, startups, universities, and entrepreneurs through mentorship programs, virtual teaching, research partnerships, investment opportunities, and startup acceleration initiatives. By transforming individual goodwill into coordinated action, Somalia can leverage its global talent pool to drive innovation, strengthen human capital, and build a more competitive, knowledge-based economy.

Building the coalition

No single institution can build Somalia's AI future alone. Government must create the enabling environment — policy, regulation, and digital inclusion. Universities must train the next generation of innovators. The private sector — telecoms, banks, fintechs, startups — must turn ideas into jobs. Development partners and global tech firms can offer financing, infrastructure, and expertise. And Somalia's diaspora, with its engineers, researchers, and investors scattered across the world, can bridge local ambition and global opportunity. The strength of this ecosystem will depend less on any single actor than on how well they work together.

The future of Somalia will not be determined by the challenges it faces, but by the opportunities it chooses to pursue. AI alone will not transform Somalia. People will. They are the entrepreneurs who dream bigger, the young people who learn new skills, the women who build businesses against the odds, and the leaders who invest in innovation. If we nurture that potential, the sky is not the limit—it is only the beginning. 

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About the Author
Shaila Khan is Portfolio Manager, Economic Recovery and Institutional Development (ERID) Portfolio, UNDP Somalia. Follow her at X: @ShailaKhanSO