January 2025

The transition to a knowledge-based economy (KBE) in Somalia faces significant challenges, including political instability, weak governance, inadequate infrastructure, and limited investment in education and technology. This study examines how the KBE can contribute to nation building by enhancing governance, fostering economic diversification, promoting social cohesion, and strengthening institutional capacity. Using a qualitative case study approach, this research draws on secondary data and stakeholder interviews to explore the relationship between KBE elements and Somalia’s reconstruction efforts. The findings reveal that the KBE enhances governance through ICT-driven e-governance, improving transparency, and service delivery. It also promotes economic diversification, with sectors such as telecommunications and mobile banking reducing their reliance on traditional industries. Education in science, technology, engineering, and mathematics( STEM) fields fosters social cohesion and national identity, whereas the Somali diaspora plays a pivotal role in capacity building through knowledge transfer and innovation. The study recommends prioritizing Research and Development (R&D) to drive innovation and entrepreneurship, strengthening STEM education to equip citizens with critical skills, and integrating Information and Communication Technology (ICT) in governance to improve efficiency. Engaging the Somali diaspora in capacity-building initiatives is crucial for sustainable development and offers a pathway to a resilient and unified nation.