In this page, we will keep track of the actual numbers as they are reported.
Domestic Revenue = $64 million dollars for the 3 months.
This is the first quarter of 2021 Economic numbers.
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Somalia’s Budget Report
Puntland’s finance reports. They have been running deficit for at least the first 3 months.
https://mof.pl.so/financial-reports-2019-eng/1st-quarter-2021-financial-reports/
At 6.3 million revenue does that mean Puntland had a tenth the revenue of Somaliland for the first quarter of this year? Somalia at 30 million had half the revenue of Somaliland?
Golaha wasiiradda Soomaaliya oo meel mariyay miisaaniyadda dalka ee 2022
Khamiis, May, 26, 2022 (HOL) - Ra’iisul Wasaaraha Soomaaliya Maxamed Xuseen Rooble ayaa maanta guddoomiyey shirka Todobaadlaha ah ee Golaha Wasiirrada Xukuumadda Federaalka Soomaaliya oo lagu ansixiyey miisaaniyadda sanadkan ee 2022.
Wasiirka Maaliyadda Soomaaliya Cabdirixmaan Ducaale Beyle ayaa u gudbiyey golaha wasiiradda miisaaniyadda dowladda oo dhan ,($918.7M) taas oo ay markii dambe cod aqlibiyad leh ku ansixiyeen Golaha Wasiiraddu.
Miisaaniyadda sannadkan 2022 waxaa ka muuqda koror saa’id ah, iyada oo $247.7 milyan ka badan miisaaniyadda sannadkii hore 2021, taas oo ahayd $671 milyan, halka sannadkii 2020 miisaaniyaddu ahayd $476 milyan.
Miisaaniyadda cusub ee dalka ayaa loo gudbindoonaa golaha cusub ee barlamaanka Soomaaliya, kuwaas oo aan weli farriisan sidii ay ku dhacday doorashadii madaxweynaha Soomaaliya ee bartamihii bishaan.
Golaha wasiiradda waxay sidoo kale meel mariyeen agaasimaha hay’adda Nabad-sugidda iyo sirdoonka qaranka ee NISA, oo loo magacaabay Mahad Maxamed Salaad, oo kamid ahaa xildhibaannada golaha shacabka.
Waa shirkii ugu horraysay ee ay yeesheen golaha wasiiradda tan iyo markii uu dalku galay isbeddel siyaasadeed oo uu talada kula wareegay madaxweyne Xasan Sheikh Maxamuud oo ku guulaystay doorashadii madaxweynaha.
Abdiweli M. Sheikh, Hiiraan Online
Somalia proposes a $1.34 billion budget for FY2025 and plans its first international borrowing in 34 years.
The Somali cabinet has approved a budget of $1.34 billion for the Federal Government for 2025, representing a 24.4% increase from the previous year’s allocation of $1.079 billion. This increase is attributed to rising domestic revenue and the necessity to address recurring expenditures, with projected domestic revenue set at $429.4 million—up 24% from $346.2 million in 2024.
In comparison, the budgets for East African Community (EAC) countries for 2025 are as follows:
- Kenya : $31.9 billion (3.1% increase from 2024/25)
- Uganda : $19.61 billion (36% increase)
- Tanzania : $18.85 billion (11.2% increase)
- Rwanda : $4.63 billion (11.2% increase)
- South Sudan : $1.4 billion
- Somalia : $1.34 billion (24.4% increase)
Somalia’s budget reflects the second highest increase among EAC countries, following Uganda’s 36% increase. This demonstrates the government’s commitment to enhancing operational costs, particularly to cover escalating security expenses. The budget-to-GDP ratio exceeds 12%, indicating the growing influence of the government in the economy.
The Somali government plans to finance the budget through $429.4 million in domestic revenue for 2025. The breakdown is as follows:
| 2025 Forecast (In Millions, USD) | |
|---|---|
| Domestic Revenue | 423.5* |
| Tax Revenue | 295.3 |
| Income Tax | 38 |
| Sales Tax | 50.6 |
| Customs | 186.2 |
| Other Taxes | 20.4 |
| Non-Tax Revenue | 128.2 |
Source: MoF, Somalia
*Note: The approved budget by the council of ministries indicates $429.5 million in domestic revenue, but the government has yet to release the information publicly. The figures above are derived from the Somali Medium Term Revenue Roadmap 2024-2027.
The income tax is expected to grow nearly 38% compared to the 2024 budget, as the government has proposed a new tax bill with significant implications for corporations. The corporate income tax (CIT) has been reduced from 30% to 15%, which is expected to enhance compliance from corporations that previously found the former rate financially unfeasible given the challenging business environment. Additionally, the personal income tax (PIT) is anticipated to generate further revenue as its scope has been broadened, now applying to lower-income earners with a taxable income threshold starting at $100 instead of the previous $200.
Sales tax is projected to contribute approximately $50.6 million for FY2025, facilitated by a 5% rate across all sectors, particularly merchants utilizing digital payment systems. Although the legal basis for the sales tax is derived from the 1984 Sales Tax Law No. 2, it is imperative for the government to modernize this framework by passing updated sales tax legislation through parliament.
The government also expects to borrow $35.6 million from international financial institutions. The Ministry of Finance needs to provide more details regarding this borrowing, including repayment plans and cash flow sources. With approximately $600 million in outstanding debt to external lenders, Somalia must exercise caution regarding any additional domestic or external borrowing to avoid returning to a state of high debt stress following post-HIPC (Heavily Indebted Poor Countries Initiative).
Source: MoF, Somalia
Moreover, approximately $870 million in 2025 is anticipated from international grants and development aid, compared to $694.6 million in 2024, highlighting a significant and growing reliance on external assistance. Major expenditures will focus on salaries and the procurement of goods and services.
The Federal Government of Somalia’s proposed budget for 2025 allocates $610 million for recurring expenditures and $713 million for development, compared to $569 million and $509 million in 2024, respectively. This reflects an increase of $41 million in recurring expenditures and $222 million in development expenditures. These funds are expected to support administration, defense and security, economic services, and social services.
SOMALILAND ANNUAL ECONOMIC PERFORMANCE | 2024
INTERESTING BITS
In 2024, cement bag imports reached 10,928,043, reflecting a substantial 53% increase compared to the previous yeaR
Average bank deposits in 2024 were $325 million, a slight increase from. Bank financing fell from
$441 million in 2023 to $267 million in 2024. The finance-to-deposit rate was lower than in 2023, influenced by the elections. An investment increase is anticipated in 2025
In 2024, Somaliland experienced a strong surge in livestock exports, reaching 3,802,903 heads, a 22% increase from 2023. Camel exports saw a significant 25% rise, reaching 144,730 heads, and cattle exports also increased by 19%. This highlights significant growth in the livestock exports compared to the previous year.
What happened in Lughaya to warrant such an increase?
Somaliland’s Economy in Quarter 1 2025
The first quarter of 2025 presents a mixed yet cautiously optimistic picture for Somaliland’s economic trajectory. Despite global uncertainty and domestic structural hurdles, the country is demonstrating signs of fiscal discipline, improved investment confidence, and early post-election economic stabilization. However, significant concerns remain, particularly regarding external inflows, financial intermediation, and project execution.
Macroeconomic Trends: Lower Inflation, Stable Currency
Headline inflation declined to 8.06%, down from 9.7% in Q1 2024 and slightly lower than Q4 2024’s 8.6%. This easing of inflationary pressure is mainly attributed to falling food and energy prices, as well as improved public confidence and stability following the 2024 presidential elections.
The Somaliland Shilling, though still under pressure, appreciated modestly due to currency stabilization measures by the Bank of Somaliland. The USD/SLSH exchange rate improved from 10,696 in Q4 2024 to 9,989 in Q1 2025. Measures such as halting USD mobile money transactions under $100 and suspending loans to civil servants contributed to this monetary improvement.
Public Finances: Revenue Exceeds Target, But Development Spending Lags
Domestic revenue collection stood at 650 billion SLSH, slightly surpassing the Q1 target by 0.3%. However, expenditure on government projects fell short, with only 74.2% of the General Government Fund being utilized.
Of particular concern is the performance of World Bank-funded projects, where only 29% of allocated funds were spent. Procurement delays and implementation bottlenecks continue to undermine the impact of donor-supported development programs. Notably, key projects like RAJO-KAAB registered zero execution during the quarter.
The underutilization of public development funds not only reduces the potential impact of donor resources but also limits the pace of public service delivery and infrastructure growth.
Financial Sector: Deposits Rise, Lending Contracts
Somaliland’s financial sector showed contrasting trends. Bank deposits increased by 37.3%, signaling growing trust in financial institutions and increased liquidity in the market. However, financing activity dropped sharply by 72.8%, which suggests either tighter lending practices or reduced borrower confidence.
This contraction in credit could hinder private sector expansion, particularly for small and medium enterprises that rely heavily on financing to grow.
Moreover, remittances, a vital pillar of Somaliland’s economy, plummeted by 50% in Q1 2025. The steep drop in both inflow and outflow remittances reflects regional and global macroeconomic headwinds, potentially affecting household income and local consumption.
Trade and Investment: Mixed Signals
In the trade sector, Somaliland saw a 3% increase in livestock exports, driven by seasonal demand during the Hajj period. Imports rose by 17%, showing signs of recovery and increased consumer or investment demand. The Port of Berbera handled more containers (+26%) and vessels (+1%), indicating moderate growth in external trade logistics.
On the investment side, business registrations surged by 86%, while domestic investments grew by 245%—a significant vote of confidence in the local economy. Foreign investment also rose by 20%, with notable interest in industry, mining, and solar energy.
However, the construction sector remains sluggish. Cement imports dropped by 78%, pointing to a decline in large-scale building projects or a possible slowdown in public infrastructure expansion.
Tourism and Mobility: Modest Uptick
Tourism showed an 18% increase, with most visitors arriving from the U.S., Europe, and Kenya. The majority of tourists visited historical and cultural heritage sites such as Laas Geel. Passenger traffic by air increased by 4% for arrivals and 6.2% for departures, reflecting improved mobility and post-pandemic normalization.
Conclusion: A Cautious Outlook for 2025
Somaliland’s Q1 2025 performance reflects a nation navigating post-election recovery with a mix of prudence and unrealized potential. The decline in inflation, improved revenue collection, and increased domestic investment are encouraging. However, underperforming remittances, a tightening credit market, and execution gaps in development programs highlight underlying vulnerabilities.
To build on this momentum, policymakers must prioritize accelerating public investment implementation, enhancing financial access for businesses, and diversifying the economy beyond livestock and remittances. Only then can Somaliland achieve a more resilient and inclusive growth trajectory in the quarters ahead.