Hargeisa, Somaliland – The Deputy Minister of Finance and Economic Development, Hon. Ismail Mowlid Abdillahi, has delivered a comprehensive update on Somaliland’s economic outlook, balancing cautious optimism with acknowledgment of external challenges.
Addressing reporters on Friday, Abdillahi said that Somaliland’s fiscal stability and political calm, particularly following the recent elections, have provided a strong foundation for growth. However, he warned that global economic turbulence continues to weigh heavily on the nation’s financial system, project implementation, and dependence on external aid.
“The international economic environment is increasingly uncertain, and Somaliland cannot remain immune to its effects. While we have maintained stability at home, global challenges directly impact our ability to sustain development projects and secure external assistance,” Abdillahi said.
To shield the economy from these risks, the Deputy Minister proposed a series of measures, including ensuring efficient and transparent use of foreign aid, expanding access to credit for small businesses to drive entrepreneurship, and closely monitoring inflation and currency stability to protect household purchasing power.
Despite the global headwinds, Abdillahi revealed encouraging fiscal performance on the domestic front. Revenue collection for the past eight months has surpassed government projections, positioning the country on track to meet its 2025 budgetary targets.
“The resilience of our domestic revenue system demonstrates Somaliland’s growing capacity to finance its priorities without over-reliance on aid,” he noted, adding that this progress reflects improved tax administration and greater compliance by businesses and citizens.
The update comes at a time when Somaliland is working to attract investment, strengthen public financial management, and diversify its economy. Officials say the government will continue implementing policies to ensure that fiscal discipline is maintained while also expanding opportunities for private sector growth.