While the needs of Mogadishu's most vulnerable populations remain high, since the collapse of the government in , ongoing civil disturbances and clan rivalries in the capital have not only interfered with humanitarian relief operations but also prevented any broad based economic development.
A dozen factional leaders have divided the city into armed zones yet not one has legitimate authority in the area of their claim. New warlords are also continually emerging all of whom compete for the control of the city's sixteen districts. Targeted kidnappings and violence against Somali nationals and humanitarian workers continues. The humanitarian operating environment in Mogadishu remains unpredictable and insecure, resulting in extremely limited access classified by the United Nations Department for Safety and Security UNDSS as the optimal phase of insecurity at Phase V.
Provision of aid is further complicated by the need to ensure equity among opposing clans. However, despite this civil insecurity, Mogadishu capital of Benadir region with an estimated population of 1. Business has actually managed to thrive in one sector; Mogadishu leads the East African market in telecommunications, the Internet and a modern communications network, including local cellular telephone systems with international connections via satellite.
One of the reasons for this success is the absence of any form of government which has yielded free trade without taxes or regulatory expenditures, thus making business cheap. However, businesses have to hire heavily armed militias to provide security against freelance gunmen who roam the city.
Since control of resources in the city remain mostly in the hands of a few competing faction leaders, any revenues collected do not go towards any public services. This leaves thousands in the city to fend for themselves with no access to any kind of basic social services. The main market in Mogadishu Bakara offers a broad range of goods from food to electronic gadgets and also arms. A report to the UN Security Council indicated a significant increase in arms transactions in the market despite an arms embargo , which underscores the militant and potentially violent nature of the operational environment.
