Renewable energy as a path to employment in Somalia’s fragile economy

In Somalia, almost 60% of the population is under the age of 25. However, labour force participation is relatively low compared to many other Sub-Saharan African (SSA) nations. Unemployment and underemployment are prevalent, particularly among young people. Despite the existence of problems of employment opportunities, the country has unexploited renewable energy sources of solar and wind energy. This study analyses the renewable energy and unemployment nexus in Somalia by utilising an Autoregressive Distributed Lag model spanning 1991 to 2022. The results of the long-run regression reveal that unemployment in Somalia is negatively influenced by renewable energy consumption and GDP. This result indicates that Renewable energy and GDP reduce unemployment, because they create new jobs and provide chances for development. However, inflation does not have a long-run impact on unemployment in Somalia. The originality of this study lies in its focus on the particular context of renewable energy and the unemployment rates in Somalia. This area has not received sufficient attention in previous research. The research recommends policy reforms that boost an energy transition to renewable sources, in addition to their role in facilitating new job opportunities and creating regional development opportunities. To create jobs, we recommend that the country utilize its economic growth by focusing on strategic investment in Significant sectors such as agriculture and renewable energy.