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  • The Somali Wire 273
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  • Published January 30, 2023

    In 2022, the Hiraal Institute reported that Al‑Shabaab was collecting nearly as much in taxes as Somalia’s federal government about USD 15 million per month. With tax revenue standing at just 4.4% of GDP, the lowest in Africa, Somalia faces a major challenge in funding reconstruction, security, and essential public services after decades of conflict. Despite this, Somalia has made steady progress in domestic revenue mobilization over the past decade, introducing new tax policies, updating revenue laws, and automating parts of the collection process. These reforms have simplified tax compliance, improved efficiency, and strengthened the foundation for state‑building.

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