The End of AID Dependency

A new development vision for Somalia

Stacks of gold coins with one coin on top

A man smiles surrounded by many happy children and women.

Somalia should embrace the new development cooperation based on trade, investment, technology transfer, and private-sector-led economic growth. The future of Somalia's development lies in moving beyond humanitarian aid and project-based assistance, led by UN agencies, toward long-term partnerships that promote investment, innovation, industrialization, and sustainable prosperity.

Beyond food Aid

For more than three decades, Somalia has been a recipients of international humanitarian aid and development assistance. The International community has been providing billions of dollars in humanitarian relief, governance support, and project-based development programs, through UN development agencies and International NGOs. These contributions have undoubtedly saved lives and helped stabilize key institutions during difficult periods.

Today, Somalia stands at a different stage of its development priorities. The country's greatest challenge is no longer simply recovering from conflict, it is creating sustainable economic growth, generating employment, and attracting investment. Rather than relying primarily on traditional development assistance delivered through individual aid projects, Somalia should seek a comprehensive bilateral strategic partnership focused on trade, investment, technology transfer, and private-sector development.

Limitations of Traditional Development Assistance

Traditional development assistance have saved lives, reduced human suffering, and supported vulnerable populations during periods of conflict, drought, and economic hardship. However, traditional aid has been less successful in fostering self-sustaining economic development. They have often fallen short of transforming national economies, creating competitive industries, or generating sufficient employment opportunities to reduce long-term dependence on external assistance. Several structural limitations have constrained the effectiveness of the traditional aid model.

A) Aid creates dependency: Somali's development financing is dominated by food aid, grants and externally funded projects. The country becomes reliant on continuous donor support instead of building productive sectors, expanding domestic revenues, and attracting private investment.

B) Isolated, project-based interventions. Many donor-funded projects operate independently and are not fully integrated into the country's national development and economic strategy. They often function outside government coordination and seek funding directly from international donors,

C) Concerns about accountability. Many externally managed projects are accountable primarily to their donors rather than to the Somali Government. They are generally not subject to government performance audits or oversight, which can limit national ownership and make it more difficult for government institutions to independently verify project results, outcomes, and value for money.

These limitations underscore the need for shifting from aid-based and humanitarian assistance to development intervention centered on trade, investment, technology transfer, industrial development, and private-sector-led economic growth.

Emerging New Development Pathway

In announcing reforms to U.S. foreign assistance, President Donald Trump argued that the traditional USAID model had become inefficient, costly, and overly bureaucratic. He stated that, despite decades of development assistance, many recipient countries had experienced limited long-term economic transformation. His administration advocated replacing traditional aid with an approach that places greater emphasis on trade, private investment, economic partnerships, and advancing mutual national interests.

Not only in the USA, the global development landscape is shifting from traditional aid toward economic partnerships. Through its Global Gateway strategy, the European Union has moved beyond a model centered on grants to one that mobilizes trade, investment, and sustainable infrastructure financing. Similarly, countries such as the United Kingdom, Japan, Canada, and Italy are increasingly using bilateral partnerships and development finance to catalyze private investment, promote technology transfer, and support long-term economic growth rather than relying solely on traditional grant-based assistance.

Somalia's next Development Approach

International development assistance has played a central role in Somalia's recovery. During this period, many UN agencies and international NGOs have designed, funded, and implemented development projects with significant operational autonomy, often working through parallel delivery systems and reporting primarily to external donors.

As the global development landscape evolves, Somalia should embrace the new development approach based on bilateral cooperation, equal partnerships, trade, investment, and technology transfer. Development cooperation should strengthen national ownership by aligning external support with the country's long-term economic strategy and empowering Somali institutions and the private sector to lead development.

Future development interventions should prioritize economic transformation rather than isolated projects. Investments should focus on building productive industries, creating decent jobs, expanding exports, attracting private capital, and increasing technology and skills transfer. By shifting from an aid-driven model to an investment-led partnership model, Somalia can build a more resilient, competitive, and self-sustaining economy.

About the Author

Abdi Siyad Omar is an Architect and Urban and Regional Planner with over 25 years of international experience in land, natural resources, rural development and environmental planning. He has worked with the United Nations and the World Bank on major infrastructure and water projects in Somalia and Angola, Afghanistan, Pakistan and with Alberta Environment in Canada on land and water management. His work focuses on sustainable development, project management, evaluation and monitoring, Environmental and social impact assessment, climate resilience, and community-driven planning.

New Path - Economic Development Partnerships