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Somalia - Overview



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  • Somalia is among the most politically and economically unstable regions in the world, and insecurity is set to increase in the mid-term. Political risks are a major concern, with civil unrest, terrorism and widespread militancy frequently leading to bloodshed and physical damage. Al-Shabaab is the main Islamist militant group fighting the weak Transitional Federal Government, and in addition to domestic attacks it is also a threat to Somalia’s neighbours, increasing tensions with Uganda, Ethiopia, Kenya and Djibouti. The Somali coast is blighted by piracy while conditions of lawlessness breed widespread criminality on land. The rate of kidnapping in Somalia is strongly and directly related to the phenomenon of piracy on the high seas, although incidents against foreign nationals on land are also a major concern. The Somali investment climate is also fraught with hazards, not least because of the country’s status as a failed state, which frequent and large-scale peacekeeping operations have so far failed to rectify. Nevertheless areas in autonomous Somaliland and Puntland are relatively stable, and their governments have enabled the areas to enjoy periods of relative peace, security and political stability. Civil unrest can be violent and break out at a moment’s notice. Crime is pervasive throughout the country.