What Are the Best Profitable Small Businesses in Somalia 2025?

 

Introduction

In 2025, Somalia's business environment is transforming fast. Thanks to mobile money, youthful energy, and growing digital access, many small businesses can thrive with little capital. Below are the top profitable small business ideas for both rural and urban Somali entrepreneurs.

1. Mobile Money & EVC Plus Services

Mobile money services like EVC Plus (Hormuud), Sahal, and eDahab have revolutionized the Somali economy. Almost all transactions, including purchases at small kiosks, taxi fares, school fees, and remittances, are done via mobile wallets. This makes mobile money agent services one of the most consistent and profitable small businesses in 2025. With minimal setup—a smartphone, SIM card registration, and a kiosk or counter—you can become a mobile money agent in your neighborhood. The daily flow of money means that you earn small commissions per transaction, which can add up to a solid monthly income of $100–$500 or more depending on the volume of customers.

This business thrives in both urban and rural areas, especially where banks and ATMs are absent. Some agents diversify by offering airtime top-ups, bill payments, and cash-in/cash-out services, making their outlet a one-stop financial center. You can boost income further by combining the mobile money service with selling basic products like SIM cards, phone accessories, or soft drinks. Trust, honesty, and convenience are key to customer retention in this business. If you’re in a small town or remote village, being the only agent can give you a significant monopoly.

2. Grocery & Convenience Shop 

Opening a neighborhood grocery shop is one of the simplest and most needed businesses in Somalia. Everyone needs access to everyday essentials like sugar, tea, milk powder, rice, cooking oil, soap, and matches. With just $300 to $800 in startup capital, you can launch a mini shop from your home or a rented stall. This type of business brings daily income and builds strong ties with the community. A smart move is to offer popular credit (deyn) options to trusted neighbors, which helps retain loyal customers.

A small shop can scale up over time into a larger retail outlet. Many shopkeepers slowly add new inventory—like soft drinks, snacks, school supplies, and batteries—to increase their profit margins. In towns with many shops, what makes you stand out is customer service, hygiene, and product variety. You can also accept mobile money payments to attract younger or cashless buyers. Pairing this with services like EVC Plus or mobile top-up makes it even more profitable. It’s low risk, essential, and easy to grow.

3. Internet Café & Printing Services

In towns where youth attend universities, schools, or NGOs operate, internet cafés and printing centers remain in high demand. These centers offer services such as document printing, passport photos, scanning, typing, and internet browsing for online applications. With around $700–$1,000, you can start with a second-hand desktop computer, printer, modem or fiber connection, and furniture. Add backup power like solar or inverter in areas with unreliable electricity.

This business becomes more profitable if you offer computer lessons, help users open email accounts, or guide them through scholarship and job applications. Some cafés in Somalia have even transformed into small freelance training hubs—teaching students to use Upwork, Fiverr, and graphic design tools. In the long run, you can expand to ID card printing, CV creation, and bulk printing for schools or NGOs. The key is to be reliable, maintain working equipment, and always be ready to serve walk-in clients quickly.

4. Solar Energy Equipment Sales

Access to reliable electricity remains a challenge across many parts of Somalia. This creates a high and growing demand for solar energy products like panels, batteries, solar lanterns, fans, and solar TVs. Starting a small solar sales business allows you to tap into both the urban and rural markets, especially in areas where fuel-based generators are expensive or unavailable. With $500 to $1,000 in capital, you can become a retailer or agent for suppliers from Nairobi, China, or local distributors.

To build trust and credibility, consider offering installation services or training someone locally who can do it for customers. Promote the benefits of solar—like cost savings, safety, and 24/7 lighting—to parents, shopkeepers, mosques, and schools. Government offices and NGOs often seek solar for their field operations too. If you focus on quality products, fair prices, and clear explanations, word of mouth will make your solar business spread fast. The profit margins are strong, and the social impact is high.

5. Livestock Trading

Somalia has long been known for its livestock economy. Trading in goats, sheep, and camels can be extremely profitable, especially around markets in places like Burao, Baidoa, and Beledweyne. You can start small by purchasing animals directly from pastoralists and selling them at weekly markets or to exporters. Many traders also work with buyers from Gulf countries who are interested in Somali livestock due to its organic, grass-fed quality. Capital requirements vary but starting with as little as $500 can get you into the business.

It’s essential to understand animal health, pricing trends, and transportation logistics to succeed. Some traders add value by feeding and caring for animals before resale, increasing their profit margins. Partnerships with butchers or restaurant owners can also create stable, repeat business. While there is physical work involved, the return can be substantial, particularly during peak seasons like Eid when demand surges. If you come from a rural background or have family in the countryside, this is one of the best businesses to explore.

6. Clothing & Tailoring Services

Fashion is a growing industry in Somalia. Many people prefer tailored clothing for daily wear, religious occasions, and weddings. If you have sewing skills or access to a good tailor, setting up a clothing and tailoring service can be very profitable. Items like abayas, diracs, jalabiyas, school uniforms, and men's traditional wear are always in demand. You can start small from your home with one machine and basic materials, then grow as you attract more clients.

A good tailor can charge $5 to $15 per garment depending on the complexity. Customers appreciate quality stitching, quick delivery, and respectful service. You can also increase your revenue by selling fabric or taking bulk orders from schools and madrassas. With clever use of social media, especially WhatsApp and Facebook, you can showcase your designs and reach new customers. If you can offer delivery or partner with small shops, your tailoring service can scale into a full clothing business.

7. Water Distribution Business

In many Somali cities and towns, consistent access to clean water is still a challenge. A water distribution business meets this essential need while offering strong profit potential. With a modest investment in a water tank, handcart, or tuk-tuk, you can deliver clean water directly to households, shops, and schools. Many families are willing to pay for convenience and safety when it comes to water, especially during dry seasons.

To make this business work, focus on building a reputation for cleanliness, reliability, and punctuality. You can partner with borehole owners or water purification companies to ensure a steady and clean supply. Operating in areas with poor water infrastructure or new housing developments is ideal. As demand grows, you can scale with larger tanks, more delivery routes, or even move into water storage solutions. With smart logistics and a helpful attitude, this business can become a daily cash earner.

8. Mobile Phone Accessories

Mobile phones are everywhere in Somalia, and people are always in need of accessories like chargers, power banks, earphones, phone cases, and screen protectors. Starting a mobile accessories business requires minimal capital—as little as $200—and offers quick returns. These products are easy to store, fast to sell, and can be sourced from wholesale markets in Mogadishu, Nairobi, or Dubai. Ideal locations include busy markets, transport hubs, and near schools and universities.

The trick to success is offering trendy, durable, and affordable items. If you include services like minor phone repairs, SIM registration, or mobile top-ups, your shop will become a go-to location for youth and travelers. You can also promote your items through WhatsApp and offer delivery using boda or tuk-tuk riders. Mobile phone accessories are among the fastest-selling consumer items and provide high margins when bought in bulk.

9. Street Food & Local Restaurants

Street food and small local restaurants are booming in Somali cities and towns. People love quick, affordable, and delicious meals, especially during busy workdays or religious holidays. Popular Somali dishes like canjeero, sambuusa, bariis (rice), and grilled meat attract a constant stream of customers. Starting a small food stall requires low capital, mostly for ingredients and a simple setup like a cart or small kitchen. The profit margins are strong due to the high turnover and low operational costs. You can also experiment with offering tea, coffee, and traditional drinks alongside meals to increase your sales.

As your reputation grows, you can expand into a larger restaurant or even catering services for events like weddings and community gatherings. Hygiene and taste quality are critical to attracting repeat customers. Additionally, partnering with local markets to source fresh ingredients at low prices will help keep costs down. Using social media and word of mouth, especially through WhatsApp groups, helps promote your business. Many successful street food entrepreneurs in Somalia started small and gradually became well-known food providers in their communities.

10. Agricultural Supply Shops

Agriculture remains a vital part of Somalia’s economy, and farmers need easy access to quality inputs like seeds, fertilizers, animal feed, and farming tools. Opening an agricultural supply shop targets a stable market of local farmers and livestock keepers. You can stock popular seeds for staple crops like maize, sorghum, and beans, plus fertilizers to boost yields. Animal feed is also a consistent seller for pastoralist communities. With an initial investment of $500 to $1,500, you can source supplies locally or import from Nairobi or Djibouti.

To succeed, build strong relationships with farmers and cooperatives, offering credit or delivery services during planting seasons. Educate customers on the best practices for using your products to build trust and loyalty. Some shops partner with NGOs or government agricultural programs to supply materials during projects. Your store can become a hub for farmers seeking advice and quality products. Diversifying your stock based on seasonal demand will maximize profits throughout the year.

Conclusion

Somalia’s business landscape in 2025 holds immense potential for aspiring entrepreneurs ready to take advantage of its unique opportunities. The small business ideas discussed—from mobile money services and grocery shops to livestock trading and agricultural supply—are not only profitable but also vital to the daily lives of millions of Somalis. What makes these businesses especially promising is their relatively low startup costs and the high demand in local communities.

Starting and growing a small business in Somalia requires more than just capital—it demands dedication, trustworthiness, and a deep understanding of local needs. By focusing on quality service, building strong relationships with customers, and leveraging technology like mobile money and social media, entrepreneurs can build sustainable income streams. As Somalia’s economy continues to develop, those who act now with commitment and creativity will be best positioned to thrive.

Remember, every big success begins with a small step. Whether you start with a mobile money agency or a small grocery shop, your efforts contribute not only to your own future but also to the growth and resilience of Somalia’s economy. Take the leap today, and be part of the inspiring wave of entrepreneurs shaping a brighter future for Somalia.