Somalia Pushes for Regional Energy Market to Drive Growth

By Asha Elmi - Reporter

Somalia, 29 January 2026 Somalia is prioritizing energy in its development and regional integration push, Finance Minister Bihi Iman Egeh said in an interview with Dawan Media on the sidelines of the Horn of Africa Initiative Forum in Mogadishu on Wednesday.

“It is a privilege to host the Horn of Africa Initiative meeting in Mogadishu for the first time. Energy remains a cornerstone for development and for building resilience across the region. We have prioritized energy as a key agenda in the Horn of Africa Initiative,” Egeh said.

He emphasized that energy is crucial for job creation, economic growth, industrialization, and improving livelihoods.

“Energy will play a key part in deepening regional integration, particularly in border areas where access to energy is most needed. Cross-border transmission of energy will ensure accessible, reliable, and affordable power, and we are envisaging the creation of a common energy market in the region,” he added.

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Somalia faces significant energy challenges, with nearly 49 per cent of its population lacking access to electricity. The government has established policy frameworks and institutional arrangements while strengthening coordination mechanisms and national institutions.

Somalia is also investing around $250 million in renewable energy, primarily solar projects, with the goal of reducing energy costs by 50 per cent n the coming years. Egeh said broader regional cooperation and external support will be essential to meet the country’s energy needs and tap into the region’s energy potential.

“Energy requires huge investment, so $250 million is just a start. We are pursuing a broader regional integration approach to fully leverage available energy resources and external assistance to meet domestic demand,” he said.

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