Somalia urged to complete fiscal federalism as low tax revenue strains justice sector

Somalia, 23 November 2025 — Somalia’s Finance Minister Bihi Iman Egeh has warned that fragmented revenue systems and weak fiscal coordination are undermining the country’s ability to fund justice and core state services, urging urgent completion of fiscal federalism measures.

Speaking at the First Somali Justice Sector Conference today, Egeh said Somalia is among the world’s lowest tax-collecting countries, with government revenue accounting for only about 3% of GDP, far below regional averages.

He stressed that without clear fiscal arrangements between the federal government and member states, Somalia would struggle to sustainably finance justice, security, health and education services.

Egeh called for harmonised tax policies, unified port tariffs and expanded revenue systems to strengthen financial stability and reduce dependence on external funding, which still accounts for more than 60% of the national budget.