Somaliland needs a broader and more durable revenue strategy. Taxation is essential to funding public services, but relying on it as the principal engine of growth can place a disproportionate burden on households and businesses, especially when the formal economy and export base remain limited. The debate over the proposed 2.5 percent goods and services tax illustrates that concern. Even if the tax is implemented effectively, it cannot by itself finance the scale of infrastructure, services, and job creation that longterm development requires. Somaliland should therefore expand its revenue base by developing two important national assets, minerals and fisheries, through carefully designed public-private partnerships (PPPs).
A sound PPP framework could convert resource potential into lasting public value. Rather than depending only on flat fees, the government could use transparent licensing, royalties, taxes, production or profit-sharing arrangements, and, where appropriate, equity participation. Properly structured, these tools can generate public revenue while mobilizing private capital, technical expertise, and market access. They can also create employment, provided that local hiring, skills development, and environmental commitments are written into enforceable agreements.
The minerals sector is a logical place to begin. Somaliland has reported deposits and smallscale activity involving gold, copper, lithium, jade, and emeralds. Yet a sector with potential is not the same as a sector ready for large-scale investment. Before inviting major investors, the government should establish reliable geological data, a clear licensing system, transparent beneficial-ownership rules, and independent oversight of revenue collection.
My experience in the mining industry has shown me that a well-governed partnership can produce meaningful public revenue. That outcome, however, is not automatic. Government must enforce contractual agreements signed with mining companies. A credible mining strategy could reduce pressure to rely on consumption taxes alone, but it should complement, not replace, a fair and effective tax system.
Botswana offers a useful lesson, though not a blueprint to copy mechanically. Its 50-50 Debswana joint venture with De Beers helped translate diamond wealth into public revenue and longt-term investment in infrastructure and human development. As former President Festus Mogae put it, “diamond revenue in Botswana has meant food on the table, better healthcare, clean water, and roads reaching communities that would otherwise be cut off” (Zitha). The core lesson is governance: transparent institutions, capable public administration, and disciplined investment of revenues matter as much as the ownership model itself. Somaliland should adapt those principles to its own laws, institutions, and market conditions.
The urgency of reform is clear. In a lightly regulated extractives sector, disputes over land and access can damage communities and discourage responsible investors. Illegal mining, land degradation, and unsafe chemical use can also impose costs that exceed short-term gains. The government should strengthen land and mineral-rights administration, provide meaningful consultation and legal protection for affected communities, require environmental and social impact assessments, and enforce mine-closure and rehabilitation obligations. Investor confidence and community rights must advance together.
Fisheries are a second major opportunity. Somaliland has approximately 850 kilometres of coastline, but its marine resources remain underdeveloped for commercial fishing. The Ministry of Investment and Industrial Development has described substantial potential in the blue economy, including fisheries and related processing, logistics, and cold-chain services. The priority should be sustainable development, not simply higher catch volumes.
PPPs in fisheries could create revenue, jobs, investment, and export capacity. Agreements with reputable operators should include transparent licence fees, landing and reporting requirements, local employment and processing targets, scientific stock assessments, observer or electronic monitoring systems, and penalties for non-compliance. These conditions would help Somaliland capture more value locally while protecting fish stocks for future generations.
Illegal, unreported, and unregulated fishing is an additional reason to build capacity. Estimates of losses from illegal fishing in Somaliland waters vary, so any figure used in public debate should be attributed to a current, directly relevant source. What is clear is that effective monitoring, surveillance, and enforcement are essential. Partnerships can assist with technology and operations, but enforcement authority, data access, and resource-management decisions must remain accountable to Somaliland’s public institutions.
Somaliland should look beyond taxation as the sole foundation of national revenue. A diversified strategy, built on a fair tax system and responsible development of minerals and fisheries, would strengthen public finances and create opportunities for citizens. PPPs can help deliver that outcome only when they are transparent, competitive, environmentally responsible, and anchored in community rights. With those safeguards in place, Somaliland can turn national assets into lasting public value rather than short-term private gain.
Mohamed Ibrahim X Abdi, MBA
References
Good Governance Africa. (2018, February 16). Models of public-private partnerships: How (not) to do it. https://gga.org/models-of-public-private-partnerships-how-not-to-do-it/
Ministry of Investment and Industrial Development, Somaliland. (n.d.). Investor services. https://www.somalilandinvest.com/investor-services/investor-service
United Nations Office on Drugs and Crime. (n.d.). Board, Search, Secure: Simulated threat, real readiness. https://www.unodc.org/roea/en/stories/board–search–secure–simulated-threat–real-readiness-.html
