Mogadishu's economy: the city's money, taxes and costs

The short version

Mogadishu (Muqdisho) is the seat of the federal government, the main port for southern and central Somalia, and the country's biggest market. Most of the government's tax money is collected in the city (EUAA, citing World Bank 2021). The city is run by the Banadir Regional Administration (BRA), whose mayor is also governor of Banadir region. For the city's history and people, see Muqdisho (Mogadishu) and Banaadir.

The city budget

Where the city's money comes from

A study by the Mogadishu research group Somali Public Agenda found that the BRA collected $47 million in 2023 and $58.5 million in 2024, not counting grants (Somali Public Agenda, 2025). Its main sources, from interviews with officials:

• Road tax and fines, about $600,000 to $750,000 a month. A bajaaj (three-wheeler) pays $15 a month.
• Land services (building permits, land titles, transfers), about $300,000 a month.
• Civic registry (birth certificates and similar), $240,000 to $250,000 a month.
• Business licences, about $3 million in 2024. Licences cost $50 to $800 depending on size.
• 15 percent of port revenue, which the federal government collects at Mogadishu port.
• Taxes on property, markets, khat and billboards.

Property taxes and land services are collected by two private companies that keep a share. A senior BRA official told the researchers the two contracts "did not follow proper procurement procedures" (Somali Public Agenda). The study found the BRA has no law behind its taxes and relies on directives from the mayor (Somali Public Agenda).

Where it goes

About 85 percent of the 2024 budget went on running costs, including pay for 3,000 to 3,400 staff costing about $1.3 million a month. Sources told the researchers that staff numbers were rising, with new people added to the payroll "without apparent responsibilities or needs justifying their recruitment" (Somali Public Agenda). They also said the city has a road maintenance budget but most roads built in the past ten years have potholes or have been washed away (same source). About 15 percent was left for building and services such as roads, schools and health (Somali Public Agenda).

Business and the port

• About two-thirds of businesses are informal. Most have 1 to 5 workers; only 7 percent have more than 20 (EUAA, citing World Bank 2021).
• Bakaara, the biggest market, has more than 20,000 indoor businesses in about 7,000 buildings (same source). See Bakaara market.
• Women hold a large share of micro businesses, especially food and tea shops (same source).
• The port is run by the Turkish company Albayrak, which took over in 2014 (Anadolu Agency). See Somalia's seaports.
• Al-Shabaab also collects its own taxes in the city from businesses and people building homes (EUAA).

What things cost

These figures come from interviews by the EU Asylum Agency in March 2025, and are not official statistics (EUAA):

For prices across the country, see Prices and inflation. For power prices, see Electricity in Somalia.

Sources disagree

How many people live in Mogadishu is disputed, which changes every "per person" figure:

• The 2014 UN population estimate counted about 1.65 million in Banadir (UNFPA, Population Estimation Survey 2014).
• Somali Public Agenda puts it at about 2 million, and notes the city government claims over 3.5 million (Somali Public Agenda).