weighted score 7.8 · nine dimensions
Country Risk Profile
Somalia
Sourcing risk, regulatory exposure and audit intelligence for Somalia-origin supply chains.
Forced & child labour
8
Al-Shabaab imposes forced labour, forced taxation, and child soldier recruitment. Bonded labour endemic in charcoal production and agriculture. No functioning state labour protections.
Worker rights & FOA
8
No functioning state institutions to protect worker rights. Freedom of association non-existent in Al-Shabaab areas. Clan-based power structures override any formal rights framework.
OHS & audit transparency
9
Audit access impossible across most territory. No occupational health and safety regulation or enforcement. Al-Shabaab-controlled areas completely opaque to any external monitoring.
Food & product safety
8
No functioning food safety regulatory system. Livestock (60% of foreign exchange) has limited veterinary certification. No product safety standards enforcement.
Environmental & regulatory
6
Charcoal production drives deforestation. IUU fishing endemic in Somali waters. No environmental regulation enforcement capacity.
Governance & anti-corruption
9
TI CPI 2025: 9/100 — joint lowest globally. 70% of federal budget from foreign donors. Al-Shabaab operates parallel taxation system. State institutions barely functional.
Tariff & preferential access
5
EBA eligible as LDC but practical trade volumes minimal. Arms embargo in force. Charcoal export ban under UN Security Council resolutions.
Non-tariff barriers
8
UN and EU sanctions create severe barriers. Al-Shabaab terrorist designation means any supply chain connection triggers counter-terrorism financing obligations. Practically unsourceable for compliant buyers.
Supply chain traceability
9
Traceability effectively impossible. No functioning customs administration across much of country. Livestock trade operates through informal clan-based networks with zero documentation.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- Al-Shabaab controls large rural areas and imposes forced labour, forced taxation, and forced recruitment. Clan-based exploitation and bonded labour are endemic in agriculture and charcoal production. No functioning labour protection system exists across most of the country.
- Child labour
- Child soldiers recruited by Al-Shabaab and clan militias. Child labour widespread in pastoralism, fishing, and informal urban economy. Somalia has among the highest child labour rates globally.
- Audit limitations
- Independent social compliance audits are impossible across Al-Shabaab-controlled territory and extremely difficult even in Mogadishu and other federal government areas. Security risk prohibits standard audit protocols.
- ILO conventions
- Somalia has ratified limited ILO conventions. Enforcement capacity is effectively zero. No functioning national labour inspection system.
EU Regulatory Exposure
EU Regulatory Exposure
- GSP status
- Somalia is eligible for EU Everything But Arms (EBA) preferences as an LDC. Practical trade volumes are minimal due to state fragility and security conditions.
- EU sanctions
- EU arms embargo on Somalia in force. Targeted sanctions on individuals associated with Al-Shabaab and threats to peace and stability.
- IUU fishing
- Somalia's waters are heavily affected by illegal, unreported and unregulated fishing by foreign fleets. Domestic fishing sector lacks any traceability or certification infrastructure.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. Somalia-origin goods face near-certain challenge given documented forced labour by Al-Shabaab and complete absence of audit infrastructure.
- Charcoal trade
- Charcoal exports from Somalia are banned under UN Security Council resolutions as they fund Al-Shabaab (estimated >$150M/yr total Al-Shabaab revenue). Any charcoal supply chain linked to Somalia carries sanctions and terrorist financing risk.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary port
- Mogadishu port handles most formal trade. Berbera port in Somaliland is increasingly used with UAE-backed development. Bosaso and Kismayo also handle limited volumes.
- Key transit chokepoints
- Gulf of Aden, Bab el-Mandeb strait, Suez Canal
- Infrastructure status
- Road network extremely limited and poorly maintained. No functioning rail system. Internal logistics depend on informal networks. Security risk on most overland routes.
- Piracy legacy
- Somali piracy peaked 2008-2012 and has declined sharply due to international naval patrols. However maritime insurance premiums for Somali waters remain elevated and the risk of resurgence exists.