Prince of HS
VIP
Any suggestions on how we can increase our domestic revenue and become self sufficient? This is quite embarrassing when you compare to other African countries.
Somalia’s annual budget for this year was 74% grants provided by foreign donors
- Thread starter Prince of HS
- Start date
It really all starts at the top. We know that not even 25% of the revenue/grants that were donated "graciously" to us by the "international community" will reach the general Somali public. It's embarrassing and frustrating to see other countries progress while this AID hinders our progress.
More warshadas need to built, local businesses and local farms should be supported by both FGS and regional gov and a lot of these telecoms/isps/power companies/hawalas should be forced to be partly nationalized since they are all practically monopolies who operate with impunity. Everything that can be locally made should be locally made, no more imports. Even if the FGS won't help, the diaspora should take initiative and do it ourselves. No one wants 30 more years of the BS
Look at the efficiency of this old factor, there were a lot of them scattered throughout the country
Also why do even to import stuff like fish? if MBS with all his faults was able to make the entirely of Somalia self sufficient in food by the late 80s (while fighting an internal war) why isn't possible now? We have more technology than ever before and millions who need jobs. Also I could be wrong; so sorry if I am. but in the 80's Somalia was the biggest producers of Malaria medication in the Horn and one of the biggest in all of Africa right? Most medicines and vitamins needed can be easily produced locally instead of getting them from Kenya. If it was done back then, it can be done now
More warshadas need to built, local businesses and local farms should be supported by both FGS and regional gov and a lot of these telecoms/isps/power companies/hawalas should be forced to be partly nationalized since they are all practically monopolies who operate with impunity. Everything that can be locally made should be locally made, no more imports. Even if the FGS won't help, the diaspora should take initiative and do it ourselves. No one wants 30 more years of the BS
Look at the efficiency of this old factor, there were a lot of them scattered throughout the country
Also why do even to import stuff like fish? if MBS with all his faults was able to make the entirely of Somalia self sufficient in food by the late 80s (while fighting an internal war) why isn't possible now? We have more technology than ever before and millions who need jobs. Also I could be wrong; so sorry if I am. but in the 80's Somalia was the biggest producers of Malaria medication in the Horn and one of the biggest in all of Africa right? Most medicines and vitamins needed can be easily produced locally instead of getting them from Kenya. If it was done back then, it can be done now
Last edited:
You can't rely on port taxes alone, when you look at these numbers you will see why FGS depends on external grants.
Let's look at specific revenues generated in 2021.
Corporate tax: 900k
Electricity Companies: 0.0
So outside of the international trade tax and administrative charges they don't have any other source of revenue, Hormuud and other telecom companies aren't paying their share, they only pay sales tax on their services and it's on the customer (3.8 million in 2021), even WB intervened and suggested to collect spectrum fees, in 2021 budget they estimated that they can collect 12 million but the actual amount was 1.2 million, in the 1st 6 months of 2022 they only collected 200k.
WORLD BANK report highlighted these points:
Let's look at specific revenues generated in 2021.
Corporate tax: 900k
Electricity Companies: 0.0
So outside of the international trade tax and administrative charges they don't have any other source of revenue, Hormuud and other telecom companies aren't paying their share, they only pay sales tax on their services and it's on the customer (3.8 million in 2021), even WB intervened and suggested to collect spectrum fees, in 2021 budget they estimated that they can collect 12 million but the actual amount was 1.2 million, in the 1st 6 months of 2022 they only collected 200k.
WORLD BANK report highlighted these points:
That's why I suggest that they introduce mobile money tax like a lot of African countries did recently, it's another lazy tax that's similar to trade tax and doesn't take much to implement, for example if mobile money tax was like in Ghana 1.75%, FGS can collect 400 million or more which is double of the current domestic revenue.
That's not the actual problem, when people are resisting taxes they cite other reasons like corruption and how they don't see where their taxes are spent on, so when you want to impose taxes on a country where no laws existed for 30 years you'll definitely see resistance, but they'll welcome it if they see its good effects, for example if FGS introduces mobile money tax and earmark it for education health and security people will welcome it if they see free schools and so on.
Bought and paid for
Nabad nabad nabad
iyo Nolol
But seriously, we need peace and stability first and foremost,
Nabad is the foundation of progress .
the taxes won’t be spent in a manner the people will approve of if it’s done by foreigners and through foreign aid though. They will give it to themselves and spend it on issues that they care about.
