Key Factors Data Analysis
Hargeisa (ANN)-The new government of the Republic of the Somaliland, recently said that the country’s income sources were raised so the budget score of 2025, with compared to the last year’s budget.
The Somaliland government recently announced its achievements in the first 100 days of the government of President Abdirahman Mohamed Abdillahi (Cirro). In the first 100 days of its term, it implemented successful projects, which it shared with the community, fulfilling the promises made during the presidential election campaign on November 13 last year.
Somaliland, a self-declared independent region in Somalia (unrecognized internationally), manages its budget primarily through domestic revenue, customs duties, and diaspora contributions. Below is a comparative overview of its annual budget from 2005 to 2025, based on available data, reports from Somaliland’s Ministry of Finance, and projections. Note that precise figures are often inconsistent due to limited transparency and external audits.
Historical Budget Data (2005–2023)
Year Budget (USD) Key Factors.
2005 ~$25–30 million Post-civil war recovery; reliance on livestock exports and minimal customs. |
| 2010 | ~$75–80 million | Growth in Berbera port revenue and diaspora remittances. |
| 2012 | ~$150 million | Increased focus on infrastructure; customs reforms. |
| 2015 | ~$200 million | Expansion of trade with Ethiopia; Hargeisa port modernization. |
| 2018 | ~$350 million | Berbera port expansion agreement with DP World (UAE). |
| 2020 | ~$400 million | COVID-19 impact reduced remittances; budget prioritized healthcare. |
| 2022 | ~$500 million | Post-pandemic recovery; inflation pressures (local currency depreciation). |
| 2023 | ~$550–600 million | Focus on security, education, and road projects; Berbera corridor development. |
Projections (2024–2025)
| Years Projected Budget (USD) Key Drivers|
| 2024 | ~$650–700 million | Expected growth in Berbera port revenue; potential foreign investment in mining.|
| 2025 | ~$750–800 million | If Ethiopia finalizes use of Berbera port, customs revenue could rise sharply. |
Budget Structure & Challenges
1. Revenue Sources:
– Domestic taxes 60–70% (mostly customs from Berbera port).
– Diaspora remittances: Critical but informal (not directly part of the budget).
– Foreign aid: Limited due to lack of recognition (e.g., UK, EU, and UAE provide minimal support).
2. Expenditure Priorities:
– Security (~30–40%), infrastructure (~20%), education/health (~15%).
3. Challenges:
– Inflation (weak Somaliland shilling).
– Lack of international loans/grants.
– Political tensions with Somalia and clan disputes.
Key Takeaways
– Somaliland’s budget has grown 10–15% annually since 2010, driven by port revenue and diaspora ties.
– Future growth hinges on Berbera port and potential recognition deals (e.g., Ethiopia’s port access).
– Limitations: Data gaps exist due to informal economy and limited external reporting.
For precise figures, refer to Deep seek, Somaliland’s Ministry of Finance reports or analyses by institutions like the Heritage Institute for Policy Studies
Written by Arraale M. Jama, a freelance journalist and human rights activist.
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