This is huge. Another potential source of foreign currency for the country. The bulk or majority of this gold is sourced from Galweita, Cirshiid and Shidan areas of Northern Sanaag.
Probably this is unrefined gold which means when refined the weight could be about 2/3 of the original. But still worth millions of $$$.
The Role of Gold in Somaliland (If Well Managed)
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Economic Growth & Revenue
• Gold can become Somaliland’s largest foreign exchange earner, reducing dependency on livestock exports.
• Stable gold exports provide hard currency reserves, strengthening the Somaliland Shilling and supporting import needs.
• Transparent taxation and royalties could add millions of dollars annually to the national budget. -
Job Creation & Livelihoods
• Formalizing artisanal and small-scale mining (ASM) could create tens of thousands of jobs across Awdal, Gabiley, Sanaag, and other regions.
• Indirect jobs in transport, services, refining, and trading would multiply the benefit.
• Cooperative models ensure miners, families, and local communities share in the wealth. -
Industrial Development
• Establishing local assay labs, gold buying centers, and a refinery would keep value-added inside Somaliland.
• Refined gold bars with a Somaliland hallmark could access regional and global markets, improving the country’s financial credibility.
• A downstream jewelry sector could emerge, supporting crafts, SMEs, and tourism. -
Community & Infrastructure Development• A share of gold royalties could be allocated to local development funds in mining regions.
• Revenues can finance roads, electricity, clean water, schools, and clinics, visibly linking mining to public welfare.
• Mining corridors (Awdal–Gabiley–Sanaag) can serve as hubs of regional growth. -
Financial Stability & Investment
• Gold reserves can act as a national savings and stabilization fund, providing a safety net during droughts or economic shocks.
• Formal gold trade attracts foreign investors and improves Somaliland’s international standing as a transparent, resource-rich economy.
• Local banks can use gold exports as collateral for loans and infrastructure financing. -
Governance & International Image
•A well-managed gold sector (transparent licensing, EITI-style reporting, traceability systems) shows Somaliland’s commitment to good governance.
•Helps combat smuggling and illicit trade, reducing links to conflict finance.
•Builds credibility with partners (regional governments, international institutions, investors).
If well managed, gold can transform Somaliland into a more self-reliant economy by bringing in foreign currency, jobs, infrastructure, financial stability, and global recognition — while ensuring that local communities benefit directly.
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