NGO collapse deepens 2026 jobs crisis
- Editorial Team SDG8
- 2 days ago
- 2 min read
The economic backbone of Somalia’s civil society has entered a perilous phase. With a 95% layoff rate among local and national non-governmental organisations (NGOs) by late 2025, the sector that once absorbed thousands of skilled workers now stands on the brink of systemic collapse. Analysts warn that this contraction could erase years of fragile progress under SDG 8, which promotes decent work and economic growth.
The collapse of local and national actors
According to the Somali NGO Consortium and recent data shared by ALNAP, nearly all Somali local NGOs were forced to reduce or suspend operations due to depleted funding. Around 75% closed field offices or froze projects, while only a third expect to remain active beyond mid-2026 without urgent financial support.
By contrast, international organisations—better insulated by global funding networks—report fewer closures, at roughly 47%. This widening gap highlights a dangerous imbalance between international and domestic capacity, undermining the principle of localisation that many development partners have publicly endorsed.
Financial suffocation and cascading effects
The contraction stems largely from global donor realignments. Major partners such as USAID reduced allocations to Somalia amid competing humanitarian demands in Ukraine, Sudan, and Syria. The ripple effect has been swift and severe.
Even multilateral agencies reduced staffing. In 2025, over 680 humanitarian employees, including 522 Somali nationals, were let go by UN agencies operating in Somalia. These downsizing waves effectively halted the sub-grants and logistical contracts that had kept local NGOs solvent. Experts describe this as a “financial asphyxiation” of the local humanitarian system.
SDG 8 under threat
The collapse strikes at the heart of SDG 8, particularly targets 8.5 (full and productive employment) and 8.6 (reducing youth unemployment). Somali NGOs historically employed thousands of professionals—doctors, engineers, programme managers, and educators—who now face unemployment or are pushed into informal work.
Economists warn of a local economic shockwave: as NGO incomes vanish, household consumption declines, and demand for small suppliers—from transport operators to construction firms—plummets. This contraction also carries a darker risk. The Somali NGO Consortium has cautioned that youth unemployment could increase susceptibility to recruitment by Al-Shabaab, reversing fragile security and employment gains.
Searching for recovery in 2026
On 28 January 2026, the Humanitarian Response Plan 2026 was launched, seeking $852 million to address urgent needs. Yet, experts argue that this must go beyond short-term relief. The future of Somalia’s humanitarian and development infrastructure, they suggest, depends on localisation—directly financing Somali NGOs to preserve employment networks and local expertise in hard-to-reach regions.
Without such a shift, Somalia risks losing an entire generation of trained civil society professionals. The crisis now unfolding is not only humanitarian but structural—testing whether the international community can uphold its commitment to inclusive, locally driven economic growth.