Private Sector Development and Political Economy Drivers in Somaliland is the World Bank Group's first effort to undertake an in-depth, consultative in-depth analysis of the private and financial sector in Somaliland in at least a generation. The objective is to take stock of what has been achieved to date since at least the 1999 constititution was approved, provide an assessment of the current evolution of the private sector and identify some priority policy options and related actions that would best enable the private sector to generate the growth and jobs sought under the Somaliland National Development Plan. The report is structured around the three key sector actors of the economy: enterprises, financial institutions and the government. This approach has been taken to facilitate a "political economy" lens into the analysis. The report explores trends in, opportunities for and impediments to effective government regulation of the private and financial sectorand private sector-led economic growth in Somaliland, a relatively new democracy with limited institutional capacities.The report concludes, drawing heavily also on the feedback received through the extensive consultative process that was also undertaken in tandem with the analysis, with recommendations as to policy choices for the continued robust growth of the private sector and the evolution of a sounder financial sector that makes possible greater financial inclusion for enterprises and individuals.