Agricultural Supply Chains:Challenges and Opportunities for Agribusiness in Afgoye, Lower Shabelle, Somalia

Abstract

The agricultural sector is an important contributor to the Somali economy, providing employment opportunities and generating income for many small-scale farmers. Somalia has a largely agrarian economy, with agriculture accounting for more than 70% of the country's GDP and employing over 65% of the population. However, the sector faces significant challenges when it comes to agricultural supply chains, which can hinder its development and growth. This experiment was conducted in the Afgoye district of the lower Shabelle Region, Somalia in 2023. This study aims to explore the challenges and opportunities that agribusinesses face in Somalia's agricultural supply chains. It also discusses the importance of technology in improving supply chain efficiency and the role that government and other stakeholders can play in supporting agribusinesses. The paper also examines the potential impact of improved agricultural supply chains on the Somali economy and provides valuable insights for policymakers, investors, and development practitioners seeking to support and promote agribusiness. The methodology used in this study involved survey questions. The survey questions utilized for this study were distributed through key stakeholders in Somalia's agricultural supply chains, including farmers, wholesalers, retailers, and processors. 57.5% of the respondents in the research responded that investing in the agricultural sector is necessary and may improve the standard of life of the population. Ultimately, this paper highlights the importance of addressing the challenges facing agricultural supply chains in Somalia and unlocking the opportunities that exist for agribusinesses to contribute to the country's economic development.