The economy of Somalia has experienced significant growth, primarily driven by increased domestic revenue as reported in a government-issued statement. Last year, the country saw a revenue increase of $329.5 million, surpassing the previously projected $283.3 million. This represents a 25% rise in the country’s revenue.
Most of the revenue generated by the government comes from sources such as ports and airports. Additionally, the government has also increased domestic taxes. Domestic tax revenue increased by 53%, while customs revenue increased by 47%.
This year’s projection suggests that revenue will reach $345 million, with expected tax revenue of $241.4 million and non-tax revenue of $13.7 million.
The Finance Minister, Shaafici Yuusuf Cumar, residing in Mogadishu, stated, “This growth is a result of improved security and the implementation of sound policies. It is essential to continue investing in the country’s development, focusing on revenue generation, debt reduction, and addressing challenges that hinder progress.”
Somali officials believe that economic growth can greatly contribute to the country’s stability, as emphasized by Shaafici. He stated, “While significant changes are expected, it is evident that foreign investment is increasing as Somalia experiences economic and security improvements.”
He also stressed the importance of international support in stabilizing the economy, suggesting that it could take years to achieve significant progress.
Outside the capital city of Mogadishu, various regions of the country are experiencing significant commercial and infrastructure developments, including the seaports and airports.
Shaafici emphasized that greater revenue could be generated if regional and capital taxes and other commercial activities were properly regulated and monitored.
“It is crucial to streamline government operations and federal-state relations, ensuring transparency in revenue collection and business activities,” said Shaafici Yuusuf.
“Global economic dynamics play a crucial role in the country’s economy. It affects trade, investment, and employment.”
Somalia is particularly reliant on external factors that influence its economy, including foreign investments and the flow of remittances from the diaspora, contributing significantly to the country’s economic landscape.
The Somali government claims that domestic revenue is being channeled into developmental initiatives aimed at improving the country’s overall progress.
According to the government, domestic revenue is being used to support the country’s developmental efforts, such as taxation, customs, social welfare programs, and infrastructure development.
Moreover, the government claims that evaluating current fiscal changes will provide investors with “significant opportunities.”
The breakdown includes sectors such as agriculture, infrastructure, energy, and private sector development, while also addressing potential challenges.
Over the past decade, government revenue has significantly increased, contributing to the national budget from 2013 to 2023, as reported by the government.
However, in recent years, there has been a slight downturn in economic growth.
In 2016, there was a slight decline (1.4%) in overall revenue, attributed to political uncertainties.
The following year, 2020, saw a significant decline (8%) due to elections and the impact of the Coronavirus pandemic.
The economy of Somalia has experienced significant growth, primarily driven by increased domestic revenue as reported in a government-issued statement. Last year, the country saw a revenue increase of $329.5 million, surpassing the previously projected $283.3 million. This represents a 25% rise in the country’s revenue.
Most of the revenue generated by the government comes from sources such as ports and airports. Additionally, the government has also increased domestic taxes. Domestic tax revenue increased by 53%, while customs revenue increased by 47%.
This year’s projection suggests that revenue will reach $345 million, with expected tax revenue of $241.4 million and non-tax revenue of $13.7 million.
The Finance Minister, Shaafici Yuusuf Cumar, residing in Mogadishu, stated, “This growth is a result of improved security and the implementation of sound policies. It is essential to continue investing in the country’s development, focusing on revenue generation, debt reduction, and addressing challenges that hinder progress.”
Somali officials believe that economic growth can greatly contribute to the country’s stability, as emphasized by Shaafici. He stated, “While significant changes are expected, it is evident that foreign investment is increasing as Somalia experiences economic and security improvements.”
He also stressed the importance of international support in stabilizing the economy, suggesting that it could take years to achieve significant progress.
Outside the capital city of Mogadishu, various regions of the country are experiencing significant commercial and infrastructure developments, including the seaports and airports.
Shaafici emphasized that greater revenue could be generated if regional and capital taxes and other commercial activities were properly regulated and monitored.
“It is crucial to streamline government operations and federal-state relations, ensuring transparency in revenue collection and business activities,” said Shaafici Yuusuf.
“Global economic dynamics play a crucial role in the country’s economy. It affects trade, investment, and employment.”
Somalia is particularly reliant on external factors that influence its economy, including foreign investments and the flow of remittances from the diaspora, contributing significantly to the country’s economic landscape.
The Somali government claims that domestic revenue is being channeled into developmental initiatives aimed at improving the country’s overall progress.
According to the government, domestic revenue is being used to support the country’s developmental efforts, such as taxation, customs, social welfare programs, and infrastructure development.
Moreover, the government claims that evaluating current fiscal changes will provide investors with “significant opportunities.”
The breakdown includes sectors such as agriculture, infrastructure, energy, and private sector development, while also addressing potential challenges.
Over the past decade, government revenue has significantly increased, contributing to the national budget from 2013 to 2023, as reported by the government.
However, in recent years, there has been a slight downturn in economic growth.
In 2016, there was a slight decline (1.4%) in overall revenue, attributed to political uncertainties.
The following year, 2020, saw a significant decline (8%) due to elections and the impact of the Coronavirus pandemic.
