Somali's GDP per Capita is false

[Idilinaa]

Taxing personal income for a corrupt government that doesn't even represent its own citizens is evil. It's just going to agitate people even more.

It's going to cripple them because imagine if a single person earns 500 dollars a month and the government taxes that, they have to cover soo many different expenses with that level of income, electricity, water, food, (maybe rent), education, transport etc

 

[Barkhadle1520]

There aren’t actual monopolies in Somaliland what likely happened in that poultry case is tied to licensing and registration requirements, which tend to be stricter compared to Mogadishu. The cost of acquiring licenses is what drives many to operate informally. That’s probably what your colleague was referring to.

Business licensing, however, brings significant income to the government.

This is why I believe struggling businesses should receive targeted tax exemptions, capped taxation, and even government grants for license acquisition to help encourage formalization and stimulate growth.

Also, let’s be clear: Somaliland has a growing poultry sector. Over the last 2–3 years, they’ve worked to develop a proper value chain including storage, processing, and local production. In fact, poultry farms now outnumber traditional livestock farms in some areas.
View attachment 364050

There are a number of well-known poultry operations: Mandeeq Poultry, Someggs Poultry, Tooyo Poultry, Mahuraan Poultry, Lootah Hargeisa Chicken, and others.

Even small youth-run poultry businesses are starting and thriving.
View attachment 364051

As for the broader economy Hargeisa actually has the second-highest number of registered businesses in Somalia (31,000), just after Mogadishu (50,000). So it’s incorrect to claim it’s anti-business. Benadir administration also issues licenses and taxes businesses. Both cities operate on a similar model in that regard.

Hargaisa is pretty much similar to Mogadishu's transformation, If you look at the recent renovations of Hargeisa’s central business district it has modern buildings, palm tree boulevards, renovated roads, you’d see it’s thriving.

View attachment 364043
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You can watch the whole video to see how it's shaped out.


Same road in Hargeisa only a few months apart

How it looks now:
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How it used to look:
View attachment 364048
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Same with Garowe, which has undergone a transformation through local revenue funded infrastructure and public works.

There are no real monopolies or oligarchies in Somalia what we have is a network of competing enterprises, community-run businesses, and cooperatives. Trying to interpret Somalia’s economic ecosystem through a Western shareholder-capitalist lens completely misses how things actually function here.

In fact, Puntland and Somaliland receive far less international aid compared to FGS, and they fund most of their governance through domestic revenue.

Puntland, in particular, has the most diversified tax base in the country: mobile money tax, property tax, business tax, transportation levies they’ve built an internally sustainable model.

View attachment 364053

Meanwhile, FGS is still largely reliant on customs duties and donor aid, with a narrow tax base and poor returns.

The Kacaan government actually had a broad tax system. It supplemented trade taxes with revenue from state-owned enterprises, business profits, tolls and even export levies. That’s what allowed it to fund public services and infrastructure.

This brings me to income tax. I’ve seen how income taxes cripple livelihoods in Somali regions like the NFD and the Ogaden before the regime change. People already pay out-of-pocket for everything healthcare, education, security, even roads. Now you want the government to tax their salaries too, and still not provide anything in return?


I’m not saying income tax should be permanently off the table, but for now, it’s neither practical nor justifiable. We need to build trust and capacity first. Once wage levels rise and the state can actually offer services, then income taxation will be less burdensome and more acceptable.

Also, given the high informality of the economy, enforcing income tax would be costly and inefficient right now. It’s better to tax where money already moves visibly: trade, large enterprises, mobile transfers, and real property.

It pisses me off how bad Hargeisa's urban planning is

 

[Idilinaa]

It pisses me off how bad Hargeisa's urban planning is

Feel you, the private sector outpaces the public sector so there lack of capacity for centralized urban planning and local councils don't have the strong capacity to regulate of urban development.

Basically, businesses and construction projects move fast, while municipal governments often lack the technical expertise, legal tools, or funding to keep pace. Which means there are few enforceable zoning laws, no architectural guidelines, and poor coordination in how infrastructure should be built how and where.

So what you had since 1991 post- recovery was unregulated private development at the expense of public infrastructure.

Strengthening the public sector and local councils, the municipalities and boosting private-public partnership is what will fix this dilemma and we can reverse it.

The good news is that they launched master plans in 2022 to fix it and recently established a local government and urban development ministry

We are correcting the haphazard expansion of Hargeisa city with the Master Plan, says Mayor Mooge​

We are correcting the haphazard expansion of Hargeisa city with the Master Plan, says Mayor Mooge

By M.A. Egge The Mayor of Hargeisa Cllr. Abdikarim Ahmed Mooge said that the local government requested to make a comprehensive master plan for the city, Hargeisa, hence thanked the national planni…

horntribune.com

The Mayor of Hargeisa Cllr. Abdikarim Ahmed Mooge said that the local government requested to make a comprehensive master plan for the city, Hargeisa, hence thanked the national planning committee and the ministry of public works for heeding their call.

Pointing out that the spread of the city has widened haphazardly, the mayor noted that the new 20-year Master Plan for the city will be at par with renowned cities, and hence would correct the anomalies.

The mayor gave the sentiments at an event presenting the Collection of Data for the new Urban City Master Plan that was launched by the VP H.E. Abdirahman Abdillahi on Wednesday in the city.

He said that the city expanded without a plan, which caused it to be ragged.

He notes that since they took office, they have been working hard to straighten the city plan and get a modern design process and correct the anomalies

We have seen the newly elected president express this as a priority (time stamped when he talks about it)

 

[Idilinaa]

Feel you, the private sector outpaces the public sector so there lack of capacity for centralized urban planning and local councils down have strong capacity to regulate of urban development.

Basically, businesses and construction projects move fast, while municipal governments often lack the technical expertise, legal tools, or funding to keep pace. Which means there are few enforceable zoning laws, no architectural guidelines, and poor coordination in how infrastructure should be built how and where.

So what you had since 1991 post- recovery was unregulated private development at the expense of public infrastructure.

Strengthening the public sector and local councils, the municipalities and boosting private-public partnership is what will fix this dilemma and we can reverse it.

The good news is that they launched master plans in 2022 to fix it and recently established a local government and urban development ministry

We are correcting the haphazard expansion of Hargeisa city with the Master Plan, says Mayor Mooge​

We are correcting the haphazard expansion of Hargeisa city with the Master Plan, says Mayor Mooge

By M.A. Egge The Mayor of Hargeisa Cllr. Abdikarim Ahmed Mooge said that the local government requested to make a comprehensive master plan for the city, Hargeisa, hence thanked the national planni…

horntribune.com

We have seen the newly elected president express this as a priority (time stamped when he talks about it)

One of Hargeisa’s key advantages is its strong social cohesion and high rate of tax compliance people generally trust each other and support development. If the government matches that with transparency and visible public service delivery, it could build real institutional trust. That would turn Hargeisa’s organic growth into something more coordinated and planned, especially with the rollout of new master plans.

 

[Barkhadle1520]

Feel you, the private sector outpaces the public sector so there lack of capacity for centralized urban planning and local councils don't have the strong capacity to regulate of urban development.

Basically, businesses and construction projects move fast, while municipal governments often lack the technical expertise, legal tools, or funding to keep pace. Which means there are few enforceable zoning laws, no architectural guidelines, and poor coordination in how infrastructure should be built how and where.

So what you had since 1991 post- recovery was unregulated private development at the expense of public infrastructure.

Strengthening the public sector and local councils, the municipalities and boosting private-public partnership is what will fix this dilemma and we can reverse it.

The good news is that they launched master plans in 2022 to fix it and recently established a local government and urban development ministry

We are correcting the haphazard expansion of Hargeisa city with the Master Plan, says Mayor Mooge​

We are correcting the haphazard expansion of Hargeisa city with the Master Plan, says Mayor Mooge

By M.A. Egge The Mayor of Hargeisa Cllr. Abdikarim Ahmed Mooge said that the local government requested to make a comprehensive master plan for the city, Hargeisa, hence thanked the national planni…

horntribune.com

We have seen the newly elected president express this as a priority (time stamped when he talks about it)

SL gov is always seriousand on time about development so this is a good sign

 

[Idilinaa]

SL gov is always seriousand on time about development so this is a good sign

They are doing something similar in JigJiga

On top of that, the Mayor of Jigjiga is rolling out an ambitious plan to transform the city into a smart city. Over 3 billion is being invested, and the entire project is being handled by local contractors. He specifically emphasized that the engineers, managers, and construction workers will be Somali , a deliberate move to build local capacity.


The plan includes centralized urban planning: underground cabling, connected neighborhoods, green spaces, and dedicated bicycle paths. It’s a modern, integrative vision driven by local expertise ,not outsourced gimmicks.

This highlights how Somalis in the region, when granted autonomy and peace, have made Jigjiga into a model of self-sustained, locally-driven development , despite decades of marginalization.

They have launched an urban development corparation in Mogadishu

About – New Mogadishu Development Corporation

nmdcs.com

But Mogadishu's plan is questionable how they going to fund, execute and coordinate it?

At least JijJiga has already collected the revenue for it and Hargeisa’s high tax compliance gives it a better foundation if paired with real reforms and planning. Then there is also the questions about institutional capacity.

 

[Barkhadle1520]

They are doing something similar in JigJiga



They have launched an urban development corparation in Mogadishu

About – New Mogadishu Development Corporation

nmdcs.com

But Mogadishu's plan is questionable how they going to fund, execute and coordinate it?

At least JijJiga has already collected the revenue for it and Hargeisa’s high tax compliance gives it a better foundation if paired with real reforms and planning. Then there is also the questions about institutional capacity.

Lol I read the paper they say by 2029 they need to "secure" 200M fund to build a better port, these kinds of things in xamar are always only hadal like that marina beach resort

 

[Barkhadle1520]

@Idilinaa @Aseer @Midas

Found some new interesting studies below

Suprisingly enough, this one is using SNBS data, had to check twice

The samples mesured 7000 households, 50,4% were rural/nomadic while 49,6% were urban

Average household income in 2022 according to this is 350 USD/month which would make 4200 GDP per capita this was a large sample with majority rural

Now this other study mesured 400 people but only in Mogadishu

The average monthly income for this was $603.35 which is 7240 GDP per capita

To be honest it makes sense that rural people earn two times less than people working in big cities, but if we do an average between the two it makes 5720 GDP capita

There's also this other study on mobile money which was made in may of this year by somali researchers at the University of Mogadishu

The research surveyed 440 Somalis from diverse backgrounds, all of whom regularly use mobile money in their daily lives

Here is the income table, and the gdp per capita is 5400$

As for cost of living, I found nothing interesting except people on Reddit who live there giving the same cost of living as the guy in the video i shared begining of the thread

 

[Idilinaa]

@Idilinaa @Aseer @Midas

Found some new interesting studies below

Suprisingly enough, this one is using SNBS data, had to check twice

View attachment 364080

The samples mesured 7000 households, 50,4% were rural/nomadic while 49,6% were urban

View attachment 364082

Average household income in 2022 according to this is 350 USD/month which would make 4200 GDP per capita this was a large sample with majority rural

View attachment 364085

Now this other study mesured 400 people but only in Mogadishu

View attachment 364086

The average monthly income for this was $603.35 which is 7240 GDP per capita

View attachment 364087


To be honest it makes sense that rural people earn two times less than people working in big cities, but if we do an average between the two it makes 5720 GDP capita

There's also this other study on mobile money which was made in may of this year by somali researchers at the University of Mogadishu

The research surveyed 440 Somalis from diverse backgrounds, all of whom regularly use mobile money in their daily lives

Here is the income table, and the gdp per capita is 5400$

As for cost of living, I found nothing interesting except people on Reddit who live there giving the same cost of living as the guy in the video i shared begining of the thread

View attachment 364094

One thing to keep in mind. Self-reported income can often be unreported or inconsistent, especially in informal economies. I think a better approach would be to measure actual household expenditures like food, rent, school fees, and remittances which can give a more accurate picture of living standards and economic capacity. People tend to remember better what the spend on essentials.

If you look at other development research i've noticed how consumption expenditure is often used as a ''proxy for income'' especially for rural or informal economies.

I hope they do something like that in the near future. They also need to account for income variability, many don't have fixed salaries and incomes can even fluctuate month to month.

 

[Idilinaa]

Lol I read the paper they say by 2029 they need to "secure" 200M fund to build a better port, these kinds of things in xamar are always only hadal like that marina beach resort

From what i remember dahabshil was meant to finance it but then i heard they backed out found new investors.

Then they scrapped it for something called Xeebta-Luulka. Very confusing because i am not sure if its the same project or a different one.