OP-ED: Energy Is the Missing Link in Somalia’s Growth Story

Ahmed Mohamud Yusuf, Chairman of Hormuud Telecom

OPINION - When our engineers first tried solar power on a few of our towers, the goal was to find a way to keep people connected when fuel was short and costs were high. The first night those towers ran without a generator, we realised something important: this could work on a major scale.

That small test changed how we think about energy. What began as a practical decision became a long-term direction. Today, nearly 90% of Hormuud’s Telecom masts run on solar. It’s cleaner, cheaper, and more reliable. And for us, that matters. Electricity should strengthen both our economy, our environment and the health of our communities.

Electricity is still one of Somalia’s toughest challenges. New research by The Seven Institute, presented at our Somali Success Stories Conference found in Mogadishu, families and businesses pay around 41 cents per kilowatt hour, three times the regional average. Many households spend a third of their income just to keep the lights on. More than half of Somali families say electricity consumes an excessive share of their income, and many are forced to burn charcoal or wood because grid power is too expensive.

Closing that gap will define Somalia’s next decade of growth. And at this year’s Somali Success Stories Forum, BECO’s $300 million pledge to renewable energy showed how much impact this could have.

With consistent investment in renewables, electricity prices could fall by more than half, from 41 cents to 19 cents per kilowatt hour. That single change would make life easier for millions - brighter classrooms, safe medicine storage, more hours for trade.

At Hormuud, we’ve seen how power and technology depend on each other. Reliable energy keeps digital services running; digital systems make power networks smarter.

We now operate 11 data centres with a combined 10 megawatts of capacity. In some facilities, up to 95% of daytime energy already comes from solar. These centres support Somalia’s digital services and prepare us for what’s next, an AI and data-driven economy that needs clean, dependable power to grow.

Across the country, BECO’s $300 million pledge to renewable energy will add 200 megawatts of capacity and cut emissions by more than 265,000 tonnes a year, about 13% of the sector’s total output. These are Somali-led efforts, built from the ground up, and they show what’s possible when business sees opportunity in sustainability.

We’ve learned that clean energy makes sense on every level. It cuts costs, reduces risk, and builds resilience. Every solar tower means fewer fuel trucks on the road, fewer outages, and better service for our customers. Every green data centre means lower operating costs and higher reliability.

For investors and development partners, the opportunity is huge. Somalia’s demand for data and power is rising quickly. Our economy is young, connected, and full of enterprise. And we have systems that can easily be retrofitted with efficient, low-carbon models.

In 2022, global climate finance reached $1.3 trillion, yet less than 2% reached fragile states like Somalia. That needs to change. Every dollar invested here does more than cut emissions, it creates jobs, supports small business, and builds long-term stability. With the right partnerships, through blended finance and shared risk, investors can achieve strong financial returns while delivering measurable impact.

We’ve built networks that connect millions. Now we’re building the power systems that will sustain them. Clean, local, and built to last. Somalia’s green digital future is already taking shape. Every day, a little more of our power and our promise comes from the sun.

By Ahmed Mohamud Yusuf, Chairman of Hormuud Telecom