Date of publication:

01/09/2026

Somalia

Do domestic laws and policies provide for forcibly displaced and stateless persons to engage in self-employment?

ANALYSIS

Assessment by population

Assessment by population
Refugees
Asylum-seekers
Analysis

In both the Federal Government of Somalia (FGS) and Somaliland, it is common to observe refugees engaging in small-scale entrepreneurial activities, with many operating businesses such as restaurants, retail shops, and service-based ventures. These small businesses are often established by refugees as a means of livelihood, providing essential goods and services to both the displaced community and the local population. In Somaliland, refugees may start businesses in urban centers like Hargeisa, where they serve as a vital part of the local economy, contributing to the diversification of services available. Similarly, in Somalia, especially in areas with significant refugee populations, small businesses run by refugees help meet local demand while fostering economic independence and integration. These enterprises not only support the entrepreneurs but also promote community development, creating job opportunities and facilitating interaction between displaced persons and host communities. The ability to operate such businesses highlights refugees' resilience and their efforts to contribute to the economy, despite the challenges they may face in accessing formal employment.

    LAW & POLICY

    Related provisions of domestic law or policy

    Constitution of the Republic of Somaliland
    • Year: 2001
    • Type: Domestic law
    • Rights Category: Asylum, Education, Freedom of movement, Health, Housing, land & property, Liberty & security of person, Nationality & facilitated naturalization, Social protection, Work & Workplace rights, Family life, Documentation
    • Link to external source: https://www.refworld.org/legal/legislation/natlegbod/2001/en/72769

    Legal provision

    Article 22 - Political, Economic, Social and Electoral Rights

    1. Every citizen shall have the right to participate in the political, economic, social and cultural affairs in accordance with the laws and the Constitution

    Article 20 - Work, Trade, and the Welfare of Employees

    1. All able citizens have a right and a duty to work. The state shall, therefore, be responsible for the creation of work and the facilitating of the skills training of employees. 2. The conditions of work of the young and women, night working and working establishments shall be regulated by the Labour Law. 3. All employees have a right to payment appropriate to the work they undertake, and are free to enter into agreements with their employers on an individual or collective basis. Forced labour is prohibited. 4. The state shall endeavour to create understanding and clear rights between employees and employers and shall accordingly introduce a law (in this respect). 5. Sate employees and members of the armed forces shall be entitled remuneration for their duties and to payments for sickness, injury, or disability in accordance with the law. 6. The state shall promote the support systems, insurance and safety of employees and shall strengthen the relevant responsible bodies

    Constitution of Somalia
    • Year: 2012
    • Type: Domestic law
    • Rights Category: Asylum, Education, Freedom of movement, Health, Housing, land & property, Liberty & security of person, Nationality & facilitated naturalization, Social protection, Work & Workplace rights, Family life, Documentation
    • Link to external source: https://www.refworld.org/legal/legislation/natlegbod/2012/en/97615

    Legal provision

    Article 23 - Freedom of Trade, Occupation, and Profession

    Every citizen has the right to choose their trade, occupation or profession freely.

    Labor Code of Somalia

    Legal provision

    Article 6 - Freedom of Labor

    Forced or compulsory labour is forbidden in any form.

    Puntland IDP Guidelines
    • Year: 2011
    • Type: Domestic policy
    • Rights Category: Education, Freedom of movement, Health, Housing, land & property, Liberty & security of person, Social protection, Work & Workplace rights, Family life, Documentation

    Legal provision

    Article 16 - Employment, Economic Activities, and Social Protection

    The Puntland Government respects and protects economic rights of all IDP women, girls, boys, and men, in accordance with the Constitution, international human rights, and humanitarian law standards and shall: a) Recognize the right to work and the right to social protection; and b) Take specific measures to protect IDPs against discrimination in the labor market and in access to social protection.

    Puntland Refugee Protection Law
    • Year: 2016
    • Type: Domestic law
    • Rights Category: Asylum, Education, Freedom of movement, Health, Housing, land & property, Liberty & security of person, Nationality & facilitated naturalization, Social protection, Work & Workplace rights, Family life, Documentation

    Legal provision

    Article 32 - Employment

    Recognized refugees shall have the right to seek employment in accordance with the applicable labor laws of Puntland.

    Somaliland IDP Policy Framework
    • Year: 2015
    • Type: Domestic policy
    • Rights Category: Education, Freedom of movement, Health, Housing, land & property, Liberty & security of person, Nationality & facilitated naturalization, Social protection, Work & Workplace rights, Family life, Documentation

    Legal provision

    Section 5.7- Livelihoods and access to employment

    The Government shall respect and protect the economic rights of internally displaced persons (IDPs) in accordance with the Constitution, international human rights, and humanitarian law. It shall recognize IDPs’ right to work and to social protection, ensure non-discrimination in the labor market, and support the inclusion of IDPs—women and men—in livelihood opportunities, skills development, and peacebuilding processes. Recognizing the unique challenges faced by IDP pastoral communities, including loss of grazing land, livestock, and weak market returns, and the heightened vulnerability of displaced women, the Government, in collaboration with stakeholders, shall: Address root causes of livelihood loss, including conflict; Build community capacity through training, including disaster risk reduction; Provide targeted livelihood support to adolescents out of school, child-headed households, and young mothers; Establish social protection and safety nets for IDPs; Conduct livelihood and market impact assessments to inform policy; Develop Sharia-compliant credit schemes to improve access to finance; Facilitate vocational and life skills training, especially for youth, to promote economic independence and reduce vulnerability to exploitation and abuse; Promote sustainable livelihoods to reduce dependency, with safeguards in high-risk livelihood environments; Support women’s participation in livelihood programming, conflict resolution, and aid distribution; Mainstream gender and child protection in all livelihood initiatives; Provide livelihood support through cash- and food-for-work programs; Strengthen pastoralist livelihoods by revitalizing livestock markets, promoting arid land farming, enhancing market access, and building storage infrastructure; Support restocking and adaptation to climate change, including alternative income sources; Promote environmental conservation as part of disaster preparedness; Construct and rehabilitate water points; Improve livestock care, grazing land management, and peaceful coexistence with host communities; and Identify and strengthen markets for livestock and related products.