The 92nd session of the Council of Ministers of the Republic of Somaliland chaired by the President of the Republic of Somaliland, HE. Muse Bihi Abdi and accompanied by the Vice President of Somaliland HE. Abdirahman Abdillahi Ismail (Saylici) addressed a number of issues affecting the lives of the people.
The Minister of Finance Development of the Republic of Somaliland, Dr. Saad Ali Shire, reported on the inflation situation in the country, the causes and the steps taken by the government in parallel with the national plans for the future.
He underlined that there had been an increase in the price of essential food and fuel, which had come from other parts of the world due to current circumstances, with the increase in the cost of living and other necessities, the minister read out one by one to the council, stating that 25kg of rice costs $ 17, sugar weighs 25 kg is $ 25 25kg flour costs $ 17 today, and 9 liters of cooking oil is at $ 14, 10Kg of Pasta costs $ 11, while Fuel per liter today costs 97,000 Somaliland Shillings.
The minister explained the causes of inflation, and he pointed out that most of the inflation in Somaliland is from the outside world, due to the Covid-19 disease in the world and the ongoing war between countries of Russia and Ukraine, while some countries in the world have stoped their food exports.
The minister also mentioned the steps that the government has taken to solve or minimize the problem, since the global inflation sarted, and they are as follows:
- The Minister said that they have introduced a tax exemption for all imported agricultural equipment and products and the food industry.
- Four major items that are important to the life of the community are decreased 10% on theirtax, namely Rice, Sugar, Flour and Oil.
- In order to boost the country’s productivity, four billion of Somaliland shillings have been invested and funded from the national budget this year. And those are the Wajale, Beer and Odweyne projects, the research and agricultural extension projects, the protcetion plant disease control project and a project to buy from farmers during the harvest season so that prices do not fall.
- The value of the Somaliland Shilling has been maintained at a stable level for four years.
- The amount of sulfur from our external fuel is increased, as the higher the sulfur is cheaper than the other.
- The government distributed food aid to 58,620 (fifty eight thousand six hundred and twenty) households, equivalent to 351,720 people.
The minister suggested that all measures be taken by the government to reduce inflation, encourage people to cultivate their land, encourage entrepreneurs to invest in their land, and be kind to the poor and not cross their border.
Finally, the council decided that the community should increase its agricultural production, and the government should continue the tax-exemptions for the necessary foods, and that business men should invest in their country to increase domestic production and for the government and traders to monitor commodity prices.
= Wabilaahi tawfiiq =
Source: Somaliland’s Presidential Palace Media Office