The situation in Mogadishu, particularly at Banadir Junction, reflects growing tensions between business owners and authorities over taxation and extortion. Shop owners are protesting against soldiers armed with AK-47s demanding unexplained taxes, despite having already paid official levies. This has led to the closure of many businesses, exacerbating the economic strain on the city.
This protest follows a similar shutdown at Bakara Market, Mogadishu’s largest commercial hub, which closed for several days in August 2024 due to widespread dissatisfaction with illegal taxation and extortion by government officials and private entities. During that time, traders ceased all business activities, including the importation of goods through Mogadishu Port, and threatened to withdraw funds from banks facilitating unlawful collections.
The recent protests at Banadir Junction highlight the ongoing challenges faced by the business community in Mogadishu. Traders have repeatedly expressed frustration over punitive tax regimes and additional costs imposed by new business requirements, such as Employee Registration, Merchant Registration, and Tax Identification Numbers (TIN). These measures have been criticized for increasing the financial burden on businesses already struggling with high operational costs.
The government’s response to these protests has been mixed. While President Hassan Sheikh Mohamud has acknowledged the traders’ grievances, his calls for compliance with tax demands have done little to alleviate the situation. The lack of a permanent solution has further fueled discontent, leading to repeated shutdowns and protests.
The closure of businesses in Mogadishu has had a severe impact on the livelihoods of thousands of people who depend on the city’s markets for their daily income. The growing unrest among traders and transport workers underscores the widespread dissatisfaction with the current administration’s handling of economic issues. As the situation continues to unfold, the government faces increasing pressure to address these concerns and restore stability to the city’s economy.