Wasuge was killed in the Warta Nabada District, which houses the presidential compound Villa Somalia, the Federal Parliament building and Mogadishu Stadium.
Wasuge was recently appointed state minister and had been in office for a short time before her assassination.
Al Shabaab claimed responsibility for the murder, calling it a "maneuver operation."
Several other murders of business people and elders from Galmudug have also been attributed to the Al Qaeda-linked militant insurgency.
Farhiyo Abdi Wasuge's assassination comes as Somali government security forces and allied local clan militias have pushed into Galmudug and seized a strategic port town.
