Somalia Absorbs Security Costs as International Aid Flows Shift

The Somali government has indicated that recent adjustments in international assistance have required a significant restructuring of its domestic budget. Finance Minister Bihi Iman Egeh stated that the country has assumed responsibility for security expenditures that were previously funded by foreign donors, while simultaneously addressing gaps in social services. According to the minister, these shifts reflect a broader recalibration of how the state interacts with the international aid architecture.

Speaking in an interview broadcast by Dawan Tv, the minister emphasized that Somalia remains heavily dependent on external support, which constitutes a substantial portion of its economic activity. He noted that the country’s vulnerability is heightened by its ongoing recovery from conflict, making it particularly sensitive to disruptions in the flow of humanitarian and development funds. The government is now navigating these changes by integrating previously externalized costs into its national financial planning.

Aid Reductions Impact Social Sectors

According to the Ministry of Finance, the majority of the aid reductions have affected funds that did not pass directly through the government treasury. Egeh estimated that between $450 million and $600 million in assistance has been reduced or halted. He clarified that most of this funding was managed by international organizations and non-governmental entities rather than being part of the national budget. Consequently, sectors such as education and health, which rely on these off-treasury channels, have faced potential disruptions in service delivery.

Government Assumes Security Financing

In response to the shifting aid landscape, the government has taken over the financial burden of several security forces. Egeh specifically cited the Danab special forces, noting that their salaries, operational costs, and logistical needs are now fully covered by the national budget. He stated that this transition has not resulted in delays or reductions in personnel payments, with salaries continuing to be disbursed monthly as scheduled. The minister described this move as a demonstration of the state’s institutional capacity to manage its own security architecture independently of foreign direct funding.

The government has also absorbed the costs associated with forces previously trained and funded by the United Arab Emirates. Egeh estimated this group at nearly 10,000 personnel, all of whom are now paid through domestic revenue streams. Despite the increase in expenditure for salaries and security, the government maintains that it is meeting these obligations using its own revenue. This financial consolidation aims to reduce reliance on specific donor streams and ensure a more stable, sovereign approach to national security and public service provision.