HARGEISA, Somaliland – The government of Somaliland has ordered a nationwide reduction in electricity prices, a move it says will deliver on a key presidential campaign promise and provide economic relief to households and businesses in the Republic of Somaliland.
In an official directive issued this week and obtained by The Saxafi Media, the Ministry of Energy and Minerals set a new uniform price of 0.59 U.S. cents per unit, a significant decrease from previous rates that varied by city. The policy, which exempts the port city of Berbera due to its unique operational framework, is scheduled to take effect Dec. 1, 2025.
The order, signed by Energy Minister Ahmed Jama Barre, frames the cut as the result of a new government-led bulk fuel procurement system designed to create efficiencies and stabilize costs for utility companies.
The move directly fulfills a pledge made by President Abdirahman Mohamed Abdillahi ‘Irro’ to lower living costs in Somaliland, an independent republic that is not internationally recognized but maintains its own government and institutions.
“The Ministry of Energy and Minerals has been working hard to ensure that the country has access to cheap, safe, and reliable electricity,” Barre stated in the directive, citing a “decision of the President” as the driving force behind the reduction.
The announcement was met with cautious optimism by residents and business owners in the capital, Hargeisa, where the rate will fall from 0.79 cents to 0.59 cents per unit. For a country grappling with high energy costs, the policy represents a tangible, if delayed, government intervention.
“This is a welcome step,” said Abdirahman Ali, a shopkeeper in Hargeisa. “The cost of electricity is a huge part of our monthly expenses. Any reduction will help families and make it easier for small businesses like mine to operate.”
Analysts suggest the price cut is a strategic effort to stimulate Somaliland’s economy by lowering operational costs for its nascent industries.
“Affordable energy is a cornerstone of economic development,” said Anwar Mohamed, a regional economic analyst based in East Africa. “By reducing the tariff, the government is aiming to boost industrial productivity and attract investment. However, the long-term sustainability of this subsidy model, reliant on centralized fuel purchasing, will be the critical factor to watch.”