Mogadishu, Somalia — In the midst of rising taxes and financial pressures facing traders in the Somali capital, the Ministry of Ports and Maritime Transport has introduced new mandatory fees for cleaning services to sanitize containers arriving at the Mogadishu’s busy port.
Consequently, this latest development has exacerbated existing burdens for traders who are already grappling with increased tax fees, including those for the customs, sanitation and scanning.
However, the new fee, which officials argue was introduced in response to increasing concerns over health and safety standards, has been met with sharp criticism from importers.
Ahmed Warsame, a local trader, voiced his frustration: “We are being squeezed from all sides. The new sanitation fees are just another burden on top of the already high taxes.”
The fees took effect one week after traders received prior notice from the Ministry of Ports and Maritime Transport, which recently awarded a contract to the private firm Total Cleaning Services to manage sanitation for containers arriving at the Port of Mogadishu.
Despite subsequent protests by traders, authorities have remained unresponsive, leaving importers and businessmen to contend with the mounting costs on their own.
As a result, some tradees say they are considering shifting their operations to alternative ports in the country to avoid the escalating expenses at the Mogadishu port
Amina Ali, another trader, warned of the potential consequences:
“If this continues, many of us will have no choice but to use other ports. It’s not sustainable for us to keep paying these exorbitant fees.”
Moreover, this potential shift could have severe implications for the Federal Government of Somalia, which relies heavily on port revenue.
Should traders choose to move their business elsewhere, the Ministry of Finance could face significant budgetary shortfalls.
This, in turn, may affect the government’s ability to meet payroll obligations and fund other essential services.
Meanwhile, economic analysts are raising alarms about the broader implications of these rising costs.
Abdi Hassan, an economist based in Mogadishu, highlighted the critical nature of the Port of Mogadishu for national commerce.
“If traders shift their operations to other ports, the financial ramifications for the government could be severe,” he warned.
“The port is a vital economic lifeline for Somalia, and losing it as a hub could destabilize the nation’s economic landscape.”
In response, the government is reportedly considering potential measures to mitigate the impact on traders.
However, traders like Ahmed Warsame and Amina Ali remain hopeful for a resolution that will alleviate their financial burdens while maintaining the port’s operational standards.
They are urging authorities to reconsider the new fees and find a balance that supports both the port’s operational standards and the viability of local businesses.
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