MOGADISHU — Somalia’s domestic revenue reached $404.31 million in 2025, marking a 9.4 percent increase compared with the previous year, according to the annual report released by the Revenue Department of the Ministry of Finance.
The increase reflects continued efforts by the federal government to strengthen tax collection, improve customs administration, and expand the country’s domestic revenue base amid ongoing economic reforms.
Officials said the growth in revenue demonstrates progress in Somalia’s efforts to reduce dependence on foreign aid and enhance the government’s ability to finance public services and development priorities through locally generated resources.
The Ministry of Finance attributed the increase to reforms aimed at improving compliance among taxpayers, strengthening oversight of revenue collection systems, and modernizing financial management procedures across key sectors of the economy.
The revenue growth comes as Somalia continues implementing economic reforms supported by international financial institutions following the country’s debt relief process, which opened new opportunities for investment and development financing.
Economists say sustained growth in domestic revenue is critical for Somalia’s long-term economic stability, particularly as the government seeks to fund security operations, infrastructure projects, education, healthcare, and other essential services.
Despite the increase, analysts note that Somalia still faces significant challenges in broadening its tax base due to insecurity in some regions, a large informal economy, and limited administrative capacity in parts of the country.
The government has repeatedly stated that increasing domestic revenue remains a key priority in its strategy to build stronger public institutions and reduce reliance on external assistance.
The annual report indicates that revenue collection continued to improve throughout 2025, reflecting broader efforts to strengthen fiscal governance and support Somalia’s economic recovery and development agenda.
Government officials expressed optimism that ongoing reforms and expanding economic activity will contribute to further revenue growth in the coming years, helping to support the country’s ambitions for sustainable economic development.
