Somalia hosts Horn of Africa finance ministers in Mogadishu, with energy trade at center of agenda
MOGADISHU — Somali President Hassan Sheikh Mohamud on Wednesday closed the 27th Horn of Africa Initiative Forum of finance ministers, the first time the high-level regional meeting has been held in Mogadishu, in a session that put regional energy trade at the heart of economic integration efforts.
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Officials said convening the forum in the Somali capital signaled growing international confidence in Somalia’s security and governance gains after decades of conflict. The meeting also coincided with Somalia’s chairmanship of the initiative, giving the government a platform to drive coordination on shared economic priorities.
Chaired by Finance Minister Bihi Imaan Cige under Somalia’s presidency of the forum, the gathering brought together finance ministers and senior officials from across the Horn of Africa to explore practical steps for expanding cross-border energy cooperation, cutting power costs and accelerating sustainable growth.
Cige said deliberations focused on mobilizing financing and policy alignment to deliver affordable, reliable energy across the region, arguing that access to low-cost power is essential to spur investment, create jobs and reinforce stability. Participants also discussed how coordinated infrastructure and energy planning could help countries manage climate shocks and address long-standing deficits in connectivity.
President Hassan Sheikh praised ministers for strengthening economic coordination and promoting experience-sharing in a region with intertwined challenges, from drought cycles to gaps in transport and power networks. He framed the Mogadishu meeting as a marker of Somalia’s recovery and a step toward deeper cooperation among neighbors.
The Horn of Africa Initiative Forum convenes finance ministries to align policy, share expertise and tackle common economic hurdles. Energy trade has emerged as a core pillar for integration, with officials emphasizing the potential of cross-border electricity interconnections and harmonized regulations to reduce costs for households and businesses while improving reliability.
Attendees underscored the need to fast-track regional energy projects that can unlock economies of scale, expand access and support industrial development. They also highlighted opportunities to crowd in private capital alongside multilateral financing for generation, transmission and distribution—particularly where regional grids can diversify supply and mitigate climate and security risks.
Somalia’s hosting of the forum reflects its bid to play a more active role in regional economic diplomacy as it works to consolidate political stability and rebuild its economy. Officials said the chairmanship will be used to push for concrete, near-term steps on energy cooperation while keeping focus on long-term integration goals.
Who participated:
- In person: Finance ministers from Somalia, Djibouti, Ethiopia and South Sudan.
- Virtual: Sudan and Kenya.
- International partners: World Bank, African Development Bank, European Union, Intergovernmental Authority on Development (IGAD), the United Kingdom and Germany.
While no specific projects were announced publicly, ministers signaled momentum toward coordinated financing and policy frameworks to advance regional energy links. They agreed that lowering the cost of power and expanding access are central to unlocking growth across the Horn, where businesses routinely cite high energy prices and unreliable supply as barriers to expansion.
As the forum closed, Somali officials said the outcome reaffirmed the region’s commitment to deeper economic ties, with energy trade as a catalyst. The next phase, they added, will focus on translating policy alignment into bankable projects and measurable benefits for consumers and firms across borders.
By Ali Musa
Axadle Times international–Monitoring.
