finance minister sounds alarm over vanishing revenue

Somalia’s Finance Minister Bihi Imaan Egeh warned on Tuesday in Mogadishu that the country is losing between $450 million and $600 million in income that previously flowed into the economy, and urged accelerated private sector growth to offset the shortfall.

The warning lands as Somalia’s federal budget already shows signs of strain, with a July 2026 policy paper projecting a $29 million fiscal deficit and continued heavy reliance on foreign grants. Egeh’s comments frame private enterprise not as a policy preference but as a necessity, given shrinking external support and volatile customs revenue.

“The $450 million to $600 million that used to enter the country is disappearing,” Egeh said. “So the situation is really not easy, and it is important that we strengthen the private sector, which is the backbone of economic development.”

Despite the pressure, Egeh pointed to gains over the past decade. He said Somalia’s economy has grown from roughly $150 million to about $2.3 billion, alongside a stronger banking sector.