Somalia's livestock monopoly controversy sparks push for accountability

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Thursday January 9, 2025

FILE - Camels waiting for export. Recent allegations of a monopoly on livestock exports have sparked backlash from lawmakers and traders, raising concerns over economic stability.

Mogadishu (HOL) — The Somali government is under intense scrutiny following allegations that it granted exclusive control over livestock exports to a foreign businessman. The decision, which lawmakers and traders claim undermines the livelihoods of millions, has sparked widespread criticism and raised concerns about the country’s economic sovereignty.

Nearly 100 members of Somalia’s Federal Parliament have issued a statement condemning the alleged monopoly. Lawmakers argue the decision disrupts the domestic livestock trade, a vital pillar of Somalia’s economy.

“This is the first time in Somalia’s history that one individual has been granted such control over a key economic sector,” the statement read, warning that the decision could lead to corruption, economic instability, and job losses for millions who rely on the livestock trade.

Abu-Yasir, who has a controversial history in Somalia, is alleged to have previously exploited local traders and businesses. Lawmakers emphasized that this decision excludes Somali entrepreneurs, threatening the livelihoods of herders, traders, and transport workers.

MP Mursal Mohamed Khalif said the move has caused an outcry among Somali traders. “Livestock is the backbone of our economy, and this decision is jeopardizing the livelihoods of countless people,” he told the BBC.

The parliamentarian acknowledged that government accountability had been delayed due to a parliamentary recess but vowed to summon officials, including the Minister of Livestock, once sessions resume. “If the government cannot provide clear answers, we will pursue legal and constitutional actions,” Mursal said.

The fallout is not limited to Somalia’s federal territories. In Somaliland, livestock traders have reported a two-week halt in exports, claiming the government granted Abu-Yasir exclusive rights to export livestock to Saudi Arabia.

Approximately 80,000 livestock remain stranded at Berbera port, and traders warn of cascading economic repercussions. “This monopoly disrupts the entire supply chain. Families are losing their only income,” Ibrahim added.

Abdirisak Mahmoud Ibrahim, a trader from Somaliland, highlighted the far-reaching economic effects. “This decision has disrupted the entire supply chain—from herders and brokers to transport workers. Families are losing their only source of income,” he said.

Approximately 80,000 livestock remain stranded at Berbera port due to the export freeze. Traders warn that the economic repercussions will ripple through the country if the issue is not resolved.

Somaliland’s Minister of Livestock, Omar Shu'ayb Mohamed, criticized the Somali federal government for interfering with regional exports and diverting tax revenues. He rejected the monopoly, asserting that it undermines Somaliland’s autonomy and economic stability.

The livestock sector contributes an estimated $1.07 billion annually to Somalia’s economy, with Saudi Arabia as the primary export destination. According to the World Bank, livestock exports injected more than $3 billion into the Somali economy over the past five years.

In normal years, livestock accounts for 80% of Somalia’s export earnings, supporting over 60% of the population. However, stakeholders warn that the alleged monopoly risks destabilizing this vital industry.

The alleged monopoly has halted this vital trade, leaving herders unable to sell livestock to meet basic needs like food and water. Brokers, truck drivers, and others reliant on the industry have also seen their incomes evaporate.

Despite the mounting criticism, the Federal Ministry of Livestock has yet to respond to these allegations.

Meanwhile, meetings among traders and transport operators in regions like Hiiraan have amplified calls for government intervention. Stakeholders have demanded an immediate end to the monopoly, emphasizing its widespread economic and social toll.

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