Somali President Hassan Sheikh Mohamud recently identified terrorism as the core source of the country’s economic suffering.
In an interview with Al Jazeera, he said the "Islamic State of Iraq and Syria" (ISIS) and al-Shabaab are directly responsible for destroying the Somali people’s livelihood and security
Prolonged insecurity has fueled dangerous political debates, including discussions about recognizing Somaliland, he warned.
These remarks renewed public attention on al-Qaeda and its Somali affiliate, al-Shabab, and their destructive role in the country.
Analysts say these groups have systematically weakened Somalia’s economy and worsened civilian life.
They argue that al-Shabaab has damaged not only national security but also social and economic foundations.
Over more than a decade, sustained violence has disrupted trade, investment, and basic services in Somalia.
Destroying economies
London-based analyst Esmatullah Noori said Somalia’s economic crisis stems primarily from sustained terrorist activities targeting the country’s economy and stability.
"By attacking cities, ports, and trade routes, these groups have paralyzed the vital lifelines of the economy, and through extortion, forced taxation, and smuggling, they confiscate people’s financial resources for their terror machine," he said.
"Under such conditions, domestic and foreign investors have no desire to engage in economic activity, and as a result, widespread unemployment and declining public services have turned into a permanent crisis."
Without containing these groups, economic reconstruction and the creation of public welfare in Somalia are impossible, he added.
Analysts argue that this economic targeting is deliberate, as al-Qaeda undermines stability to increase dependence, fear, and social fragmentation.
Criminal networks
Civilian suffering is a direct result of the financial and logistical backing these groups receive, said security expert Muhammad Nasim Moradi.
"These networks exploit poverty and discontent to push young people toward violence, while at the same time targeting with bombings and assassinations the very communities they claim to protect," Moradi said.
He noted this strategy "traps society in a cycle of poverty and insecurity," stressing that effective global pressure on these networks is vitally necessary.
Niaz Mohammad Mansouri, an Ankara-based counter-terrorism analyst, characterized al-Qaeda as "a criminal enterprise."
"The activities of these groups include extortion, smuggling, illegal control of resources, and racketeering, and ideology is merely a tool to justify crimes and acts of violence," Mansouri told Salaam Times.
He said the government knows al-Qaeda destroys services and spreads fear to replace the state, yet provides no security or welfare for the people.
To confront al-Qaeda, Mansouri argued that strategies must mirror those used against organized crime, emphasizing that cutting off financial and logistical support is essential.
![Members of the Somalia National Army (SNA) secure a village reportedly destroyed by retreating insurgents in Awdheegle, one of several towns recently retaken from al-Qaeda-linked militants al-Shabaab in Somalia’s Lower Shabelle region on November 11, 2025. [TONY KARUMBA / AFP]](/cnmi_st/images/2026/01/15/53489-afp__20251118__847m-585_329.jpg)