Somalia, 5 October 2025 — Leading telecommunication and banking companies in northern Somalia, including Amal, Telesom, Dahabshiil, and Golis, have raised concerns over extra taxes imposed by the newly established North East State government.
The companies argue that the government’s demands for additional payments under what it refers as ‘State Building’ (Dowlad-dhis) exceed standard tax obligations and are not in line with established legal procedures.
The companies, which provide vital services such as mobile money, remittances, and telecommunications, are central to Somalia’s economy. They argue that the government’s actions are threatening their financial stability and could disrupt essential services to the public.
“We are ready to cooperate with the administration and pay the required taxes. However, the amounts requested under the name ‘State Building ’ cannot be paid by these companies, as we can only pay the legally required taxes,” the companies stated in a joint press release today.
The dispute between the private sector and the North East State government has been escalating in recent months with the companies accusing the local authority of demanding extra fees that do not conform to the agreed financial regulations.
These companies have long been crucial in providing services across Somalia, especially in areas with limited access to formal banking and communication infrastructure.
The companies claim that recent government actions bypass legal procedures, resulting in financial harm and reputational damage.
Amal, Telesom, Dahabshiil, and Golis cover a large portion of the population, making their services essential for daily transactions. The companies now say they are facing increasing scrutiny and financial demands that threaten their operational viability.
“These companies have faced actions outside the legal framework, which have led to financial losses, damage to their reputations, and a denial of the financial services that the public has a right to access,” they added.
The companies are calling on the North East State government to review the financial demands and ensure they comply with legal frameworks. They have expressed willingness to cooperate but insist that the process must be transparent and aligned with established law.
“We urge the government and the President to promptly lift the restrictions and barriers placed on vital services that are essential for the community's survival and to return to legal procedures,” the statement concluded.
This growing dispute highlights the need for clear legal frameworks and fair business practices in Somalia. The outcome of this conflict may set a significant precedent for future government-business relations in the country.
The companies said they remain hopeful that a resolution will be reached to ensure continued provision of essential services to the Somali public while also upholding legal and financial fairness.
