The economy of Somaliland: budget, shilling, Zaad and Berbera

The basics

Somaliland has run its own administration in the northwest since 1991, with its own budget, central bank and currency. Its figures are reported separately from the federal government's.

• Size of the economy: about $4.58 billion in 2024, or about $912 per person, according to Somaliland's Ministry of Planning and National Development (Wikipedia, Economy of Somaliland, citing the ministry's GDP Report 2024).
• Population used by the government: about 6.25 million in 2024 (same source).

These figures are produced by Somaliland's own statistics office and are not part of the federal national accounts.

The budget

Somaliland's cabinet endorsed a record budget for 2026 of about 4.58 trillion Somaliland shillings, about $424.5 million, on 29 November 2025, citing a strong revenue outlook (Horn Diplomat, 29 November 2025). A presidential decree of 23 December 2025 put it into effect (Somaliland Standard). In mid-2026 the finance ministry presented its 2027 budget priorities to parliament (AllAfrica).

The currency

Somaliland issues the Somaliland shilling through the Bank of Somaliland (Wikipedia, Somaliland shilling). In August 2026 the authorities set an official rate of 11,000 shillings per dollar (buying) and 11,100 (selling). Money changers must now register, at $700 plus a $130 annual tax, and unlicensed changers can no longer exchange through Zaad and eDahab. Hundreds of informal changers lost their work (Radio Ergo, 25 August 2026).

Mobile money

Zaad, run by Telesom, holds money in US dollars and is used for most daily payments. Telesom added a currency exchange function to Zaad so users can switch between dollars and shillings on the phone (GSMA). eDahab, run by Somtel, is the second service.

Banks and finance

• Wadaag Bank opened on 31 August 2025 as Somaliland's sixth licensed bank and its first digital-first Islamic bank. Its wallet connects to Zaad and eDahab, and it sells shares to the public (Tech Africa).
• Somaliland engaged AlHuda CIBE to draft rules for Islamic banking (Salaam Gateway).
• A $500,000 interest-free loan scheme for young entrepreneurs was launched (Dawan Africa).
• Somaliland cut business registration fees by 50 percent in 2021 (Somaliland Standard).

Berbera port

DP World of Dubai agreed in 2016 to manage and expand Berbera port under a $442 million joint venture with Somaliland (Gulf News). In January 2026 the federal government announced it was cancelling port agreements with the UAE, including at Berbera. Somaliland called that decision legally invalid, and DP World said its operations continue under existing agreements (The Standard). See Somalia's seaports.

Money from abroad and telecoms

Dahabshiil, the largest Somali money transfer company, was founded in Burao (Wikipedia, Dahabshiil). Three undersea internet cables land at Berbera: PEACE, 2Africa and G2A, the last co-owned by Telesom, Golis and Hormuud (National Communications Authority).

Sources differ

Older outside estimates of Somaliland's economy, from before its own GDP reports, were much lower and are not comparable (Wikipedia, Economy of Somaliland). Somaliland's household survey uses its own methods (Somaliland Ministry of Planning).