Somali Diaspora as a Key Role in Economic Development in Somalia: A Case Study in Mogadishu

This study examined the role of the Somali diaspora in promoting economic development in Mogadishu, Somalia by focusing on Remittances and Household Welfare (RHW), Investment and Job Creation (IJC), and Knowledge Transfer and Capacity Building (KTC) as the key dimensions of diaspora contribution. A quantitative correlational research design was employed, with data collected from 80 Somali diaspora returnees through a structured questionnaire using simple random sampling. The data were analyzed using SPSS Version 16, employing descriptive statistics and Pearson correlation analysis to examine the relationships among Remittances and Household Welfare (RHW), Investment and Job Creation (IJC), Knowledge Transfer and Capacity Building (KTC), and Economic Development (ED). The findings revealed that respondents generally agreed that diaspora remittances improve household living standards, reduce poverty, and increase access to education and healthcare. Similarly, diaspora investment was found to create employment opportunities, promote entrepreneurship, and stimulate local economic growth, while knowledge transfer and capacity-building initiatives enhanced human capital, professional development, and institutional performance. The Pearson correlation analysis demonstrated significant positive relationships between RHW and ED (r = .602, p < .01), IJC and ED (r = .593, p < .01), and KTC and ED (r = .549, p < .01). Strong positive correlations were also observed among the independent variables, indicating that remittances, investment, and knowledge transfer are highly interconnected dimensions of diaspora engagement. The principal contribution of this study is the empirical evidence that the Somali diaspora contributes to economic development not only through financial remittances but also through investment, employment creation, entrepreneurship, and the transfer of knowledge and professional expertise. Overall, the study underscores the importance of strengthening diaspora engagement policies, promoting investment, facilitating knowledge transfer, and enhancing institutional collaboration to achieve inclusive and sustainable economic development in Mogadishu, Somalia.