The economy by region
How Somalia's federal member states raise and spend money
Each federal member state runs its own budget. In 2025 Puntland raised $100 million of its own revenue, far more than any other state, while South West, Hirshabelle and Galmudug relied on donor grants for most of their money. The federal government sent about $180 million to the states that year.
The states' money in 2025
All figures for 2025 come from Ministry of Finance data published by the Central Bank of Somalia, Annual Report 2025.
Puntland
- Revenue and grants: $119 million, of which $100 million was its own revenue (84 percent): $83 million in taxes and $16 million in fees and charges.
- Donor grants: $19 million.
- Spending: $118 million, including $56 million in salaries, $43 million in goods and services, and $18 million on building and equipment, the most of any state.
Jubaland
- Revenue and grants: $70 million, of which $37 million was its own revenue ($28 million in taxes).
- Donor grants: $33 million.
- Spending: $68 million, including $41 million in salaries and $5 million on building.
Galmudug
- Revenue and grants: $33 million, of which $11 million was its own revenue.
- Donor grants: $22 million, about two thirds of the total.
- Spending: $29 million, including $11 million in salaries and $3 million on building.
South West State
- Revenue and grants: $26 million, of which $5 million was its own revenue.
- Donor grants: $21 million.
- Spending: $25 million, including $2 million on building.
Hirshabelle
- Revenue and grants: $24 million, of which $8 million was its own revenue.
- Donor grants: $17 million.
- Spending: $24 million, including $9 million in salaries and $1 million on building.
What the numbers show
- Every state spent close to what it received, and most ended the year with a small surplus.
- Running costs, mainly salaries and goods, took 85 to 94 percent of each state's spending. Money for roads, buildings and equipment was small everywhere.
- Puntland raises most of its own money. South West, Hirshabelle and Galmudug depend mainly on grants.
All three points: Central Bank of Somalia, Annual Report 2025.
Money from the federal government
The federal government transferred about $180 million to the member states in 2025, up 12 percent from $160 million in 2024, against $239.5 million planned (same source).
The IMF recommends one shared sales tax between the federal government and the states, and stronger customs and income tax collection (IMF, 5 October 2026). In the 2026 budget consultations, the Ministry of Finance noted that member states still collect and use their own taxes (Ministry of Finance, 2026 Budget Consultation Report).
Next year
Puntland's cabinet approved a 2027 budget of more than $308 million (Dawan Africa).
Not covered here
Banadir (Mogadishu) is run by the Banadir Regional Administration, and Somaliland keeps its own accounts. See The economy of Somaliland and The federal budget and taxes.
Sources
- Central Bank of Somalia, Annual Report 2025 · centralbank.gov.so
- IMF, 5 October 2026 · imf.org
- Ministry of Finance, 2026 Budget Consultation Report · archive.mof.gov.so
- Dawan Africa · dawan.africa
Toosoo!
Since 1895, every generation has worked for one united, prosperous Somalia. Now it is our generation.
Can you help with How Somalia's federal member states raise and spend money? Tell us what you can give.
I want to help with this
Where this matters
- Boosaaso (Bosaso) and BariBari is Puntland's north-east region, with the port city of Bosaso (Boosaaso) as its capital and about 1.28 million people.
- Garoowe (Garowe) and NugaalNugaal is the region around Garoowe (Garowe), Puntland's capital, with about 656,910 people in three districts.
- Gaalkacyo (Galkayo) and MudugMudug is a region of central Somalia with about 1.5 million people, split between Puntland in the north and Galmudug in the south.
- Dhuusamarreeb (Dhusamareb) and GalgaduudGalgaduud is a region of central Somalia in Galmudug State, with Dhusamareb (Dhuusamarreeb) as its capital and about 845,000 people.
- Beledweyne (Belet Weyne) and HiiraanHiiraan is a region of Hirshabelle State on the Shabelle river, with Beledweyne as its capital and about 505,000 to 598,000 people.
- Jowhar (Johar) and Middle ShabelleMiddle Shabelle is the farming region along the Shabelle river north of Mogadishu, with Jowhar as its capital and about 1 to 1.26 million people.
- Marka (Merca) and Lower ShabelleLower Shabelle is Somalia's biggest farming region, along the Shabelle river south-west of Mogadishu, with Marka (Merca) as its capital and about 835,000 to…
- Baydhabo (Baidoa) and BayBay is a farming region in South West State, with Baidoa (Baydhabo) as its main city and about 1.25 to 1.8 million people.
- Xuddur (Hudur) and BakoolBakool is a region in South West State, on the border with Ethiopia, with Xudur (Hudur) as its capital.
- Garbahaarrey (Garbaharey) and GedoGedo is the south-western region on the borders with Kenya and Ethiopia, with Garbahaarrey as its capital and about 1 million people.
- Bu'aale (Buale) and Middle JubaMiddle Juba is a farming region on the Juba river in the south, with about 447,000 people.
- Kismaayo (Kismayo) and Lower JubaLower Juba is the far southern region on the border with Kenya, with the port city of Kismayo (Kismaayo) as its capital and about 1.2 million people.
Same era
- How Somalia's federal system works: the member statesSomalia has six federal member states: Puntland (1998), Jubaland (2013), South West (2014), Galmudug (2015), Hirshabelle (2016) and North Eastern State…
- Somalia's economy at a glanceSomalia's economy in numbers: GDP, growth, spending, trade, money from abroad, the budget and debt, with sources from the Central Bank and IMF.
- How many people live in Somalia? Population, ages and growthSomalia's population from 1950 to 2050: how many people, how young, how fast it grows, how many live in towns, and why the numbers differ. With a data file.
- Somalia and Somaliland, 1991 to 2026: the factsOn 18 May 1991 the north-west declared the Republic of Somaliland and ended the 1960 union.
- Why is Somalia poor? The numbers and the forcesA calm, sourced answer to why Somalia is poor: income per person, poverty, the 1991 collapse, drought, exports, jobs, taxes, debt, and what is changing now.
- How to find a job in Somalia: the real job boardsWhere jobs in Somalia are really advertised: the National Job Portal, ReliefWeb, Somali Jobs, UN careers, and how to spot a fake vacancy.