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AfricaEast AfricaSO

Somalia

AI Agent Legal Status: undefined · Autonomy: none

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1Score /10

Legal Framework

Somalia lacks a functioning comprehensive legal framework for technology. Despite this, the private telecom sector has thrived with some of the lowest call rates in Africa, and mobile money (e.g., Hormuud's EVC Plus) is widely used.

Key Laws & Regulations

  • Provisional Constitution 2012
  • Companies Law (limited enforcement)

Business Formation

Formal business registration exists but enforcement varies significantly by region. Mogadishu and Somaliland (Hargeisa) have more functional business environments.

Tax Implications

Tax systems are fragmented and inconsistently enforced across regions.

Opportunities

Mobile-first economy and underserved population create long-term potential for resilient AI-driven mobile services.

Highlights

Paradoxically high mobile money adoption and competitive telecom sector despite governance challenges.

Risks & Challenges

Security concerns, fragmented governance, and lack of reliable legal infrastructure make formal technology ventures extremely challenging.