WASHINGTON, United States (Somalia Today) — A new World Bank project in Somalia aims to create 28,000 jobs for youth and provide cash transfers to 123,000 vulnerable households, supporting an estimated 738,000 people, the international lender announced.
The $112 million initiative—Building Opportunities and Outcomes in Social Protection and Youth Employment (BOOST-You)—marks a step in Somalia’s shift from humanitarian-led aid to a sustainable, government-run social protection system.
Somalia is still recovering from decades of conflict and severe climate shocks, including recent floods and prolonged droughts. Youth unemployment remains critically high, with the UN and other agencies estimating it to be above 60 percent.
The World Bank says roughly 40 percent of the population lives in extreme poverty, a pressure that fuels instability and displacement.
The project will build on “Baxnaano,” the government’s flagship social protection program, said Hideki Matsunaga, the World Bank Country Manager for Somalia.
“BOOST-You is a testament to Somalia’s commitment to building resilient institutions and creating real opportunities for its youth,” Matsunaga said in a statement. He added that the program will help “reinforce the social contract between the state and its citizens.”
This focus on a government-led system is critical. In December 2023, Somalia completed the HIPC debt relief process, unlocking new international financing—such as this grant—after years of economic reform.
The $112 million package will directly scale up Baxnaano. An earlier phase, the SNHCP, first tested government-implemented cash transfers and youth employment schemes.
Strengthening Somalia’s social protection
The funding will cover regular and emergency cash transfers, youth employment support, and payments to families who use health and education services.
The youth jobs component runs through 2029. It sets a target for women to fill 16,800 of the new jobs—60 percent—to address the deep labor market disparities.
Financing includes a $100 million grant from the World Bank’s International Development Association (IDA). Additionally, there is $10 million from the Somalia Multi-Partner Fund (MPF), and $2 million from the Global Shield Financing Facility (GSFF).
IDA serves the world’s poorest countries with zero- to low-interest loans and grants. The additional MPF and GSFF contributions signal a multi-partner approach that pools resources and aligns humanitarian and development goals.
A key objective is to enhance the government’s delivery systems. Plans include improving the Unified Social Registry and funding a new National Socio-economic Survey that will cover 12 million people.
The registry functions as a database for identifying vulnerable households. It helps the government and aid partners deploy assistance—such as emergency cash during shocks—more quickly and fairly.
Tackling youth unemployment
Somalia’s high youth unemployment is a key driver of instability. Creating 28,000 jobs is a direct response. Militant groups, including Al-Shabaab, often exploit joblessness by offering pay and a sense of purpose to disenfranchised youth. Therefore, offering viable economic alternatives is central to the government’s stabilization strategy.
“BOOST-You is a milestone in addressing Somalia’s high rates of youth unemployment and inactivity,” said Ali Qureshi, the project’s Task Team Leader and a Senior Social Protection Specialist.
The project supports “fostering inclusive job creation and building resilience to climate and other shocks,” he added.
Somalia is at the forefront of climate change. A historic five-season drought ended in 2023, followed by devastating Deyr floods. These shocks repeatedly displace communities and destroy livelihoods, making adaptive safety nets essential.
Somalia’s Ministry of Labor and Social Affairs will run the project. Officials say it includes strong governance and monitoring to ensure transparent delivery of services.
Challenges remain. The federal government continues to battle an Al-Shabaab insurgency. Reaching beneficiaries in insecure or hard-to-access areas will require close work with local partners.
Even so, the project aligns with Mogadishu’s push to lead its own economic and social recovery. Ultimately, officials will judge BOOST-You by whether it offers a durable alternative to short-term humanitarian aid.
