Mogadishu, Somalia – In its 2024 Annual Financial Report, the Ministry of Finance of the Federal Government of Somalia announced a 12% increase in domestic revenue compared to the previous year, marking a significant milestone in the country’s journey toward fiscal self-reliance and institutional reform.
The report attributes this growth to a combination of policy and operational reforms, including the revision of key revenue laws, the digitalisation of tax and customs systems, improved administrative practices, and a noticeable increase in public trust and voluntary compliance.
Throughout 2024, the Ministry closely collaborated with the business community and ordinary citizens to boost revenue collection. This engagement, alongside enhanced transparency and consistent communication, created a more cooperative tax environment that encouraged wider participation in the national revenue system.
“We are witnessing the results of years of reform-minded policy and institution-building. By strengthening our legal framework, improving tax collection through digital systems, and restoring trust in government services, we are demonstrating that domestic revenue can sustainably support national priorities,” said Bihi Egeh, the federal Minister of Finance.
The ministry highlighted that revised taxation laws helped modernize Somalia’s fiscal policies to reflect current economic realities. At the same time, digital transformation through the introduction of e-filing systems, automated customs processes, and real-time monitoring tools significantly reduced leakages and boosted efficiency. Public engagement, including awareness campaigns, business forums, and taxpayer outreach, also played a key role in promoting compliance and civic responsibility.
This progress forms part of a broader public finance reform agenda aimed at reducing reliance on foreign aid and positioning Somalia to fully fund its national budget through domestic means in the coming years.
With improved governance and commitment from both public institutions and private citizens, the Ministry of Finance reaffirmed its dedication to inclusive economic growth, sustainable development, and financial sovereignty.
The 2024 performance builds on gains made in previous years and reflects Somalia’s steady momentum toward economic stabilization and recovery after decades of conflict and institutional fragility.