Somalia's economy consists of both traditional and modern production, with a gradual shift toward modern industrial techniques.
Agriculture is the most important economic sector of Somalia. It accounts for about 65% of the GDP and employs 65% of the workforce. Livestock contributes about 40% to GDP and more than 50% of export earnings. Other principal exports include fish, charcoal and bananas; sugar, sorghum and corn are products for the domestic market.
With the advantage of being located near the Arabian Peninsula, Somali traders have increasingly begun to challenge Australia's traditional dominance over the Gulf Arab livestock and meat market, offering quality animals at very low prices. In response, Gulf Arab states have started to make strategic investments in the country, with Saudi Arabia building livestock export infrastructure and the United Arab Emirates purchasing large farmlands. Somalia is also a major world supplier of frankincense and myrrh.
The modest industrial sector, based on the processing of agricultural products, accounts for 10% of Somalia's GDP. Prior to the outbreak of the civil war in 1991, the roughly 53 state-owned small, medium and large manufacturing firms were foundering, with the ensuing conflict destroying many of the remaining industries.
Main export partners of Somalia are the United Arab Emirates, Saudi Arabia, Yemen and Oman.
Somalia maintains an informal economy largely based on livestock, remittance/money transfer companies, and telecommunications.
According to the Central Bank of Somalia, imports of goods total about $460 million per year, surpassing aggregate imports prior to the start of the civil war in 1991.
Livestock, hides, fish, charcoal, and bananas are Somalia's principal exports, while sugar, sorghum, corn, qat, and machined goods are the principal imports. Somalia's small industrial sector, based on the processing of agricultural products, has largely been looted and the machinery sold as scrap metal. Telecommunication firms provide wireless services in most major cities and offer the lowest international call rates on the continent. Mogadishu's main market offers a variety of goods from food to electronic gadgets.
Main import partners of Somalia are Djibouti, India, Kenya, Pakistan, China, Egypt, Oman, United Arab Emirates and Yemen.
Somalia Customs Contacts
Somaliland Chamber of Commerce, Industry and Agriculture (Somalia)
Telephone: +252 2 523143
Somalia is a country situated in the Horn of Africa, bordered by Ethiopia, Djibouti, the Gulf of Aden, the Indian Ocean and Kenya. The country is a member of the African, Caribbean, and Pacific Group of States, the World Federation of Trade Unions and other international organizations.
Customs matters in Somaliland are under the Ministry of Finance, Ministry of Resettlement, Rehabilitation and Reintegration (MRRR) and Planning facilitate duty exemption.
There are no specific regulations that are really properly set up. All goods (except duty exempt goods) pay dutiable values, which vary in taxable value. Goods are usually calculated by adding together various government duties and include all other taxes. All perishable goods are 18.7598% on landed values, luxury items 100%, agricultural materials are 12.283%. These lump sum taxes are made up of sales tax, local government tax, service charge and stamp duty respectively.
The Somaliland customs tariff makes use of both specific and ad valorem duty rates which range from 3% to 70%. The average duty is approximately 30%. Higher rates of duty are applied to none essential or luxurious items such as Khat, cigarettes and perfumes.
Organization Request for tax exemption, B/L and Non-commercial Invoice are important. A transit facilities paper will be obtained for transit cargoes. No deposit or guarantee is required
General drugs are prohibited.
No specific rules to ban GMO commodities. However, drugs and alcohol are not allowed in to the country.
Documentation process is as follows:
- Notice to the port authority
- BoL and manifest
- Payment per bag
- Discharge commences
Information on customs clearance can be found here: