By Mohamed Abdi
MOGADISHU — Beneath the sweltering Somali sun, Mogadishu’s labyrinthine streets hum with the rhythms of daily life.
Yet, amid the bustle of commerce and the din of street vendors, a palpable sense of unease grips the city following the government’s recent decision to impose a 5% tax on digital transactions.
For many residents, already burdened by economic hardships and infrastructural deficiencies, the new tax represents a tipping point.
In the bustling Bakara Market, where merchants hawk everything from fresh produce to imported electronics, Mohamed Abdi, a longtime vendor, voiced his frustration.
“The cost of living is already unbearable,” he lamented, wiping sweat from his brow as he surveyed his modest stall.
“This tax will only push more people into poverty.”
The sentiment is shared across the city’s diverse neighborhoods.
In Hodan District, where narrow alleys teem with activity and colorful murals adorn weathered walls, Halima Ahmed, a mother of four, expressed concern over the impact on her family’s precarious livelihood.
“We struggle to put food on the table,” she said, her voice tinged with resignation.
“Every cent matters.”
The tax hike has not only stirred economic anxieties but also ignited broader questions about governance and accountability.
In a nation scarred by decades of conflict and grappling with the dual challenges of reconstruction and reconciliation, some view the government’s move as indicative of a disconnect between leadership and the realities faced by ordinary citizens.
Critics argue that while digital transactions are increasingly central to urban commerce, the tax, the third imposed since president Hassan Sheikh Mohamud came to power for a record time in 2022 threatens to stifle entrepreneurial spirit and deepen inequalities.
“We need policies that empower, not impoverish,” remarked Fatima Osman, an activist with a local advocacy group.
“This tax risks widening the gap between those who have and those who have not.”
ANXIETY AMID HARSHIP
Amidst the chaotic traffic and lively markets that define daily life here in Mogadishu, voices of opposition echo loudly, reflecting a growing fear that the tax could exacerbate economic hardships for the city’s impoverished populace.
The tax hike announcement, made by Finance Minister Bihi Igeh this week, has sparked widespread outrage and triggered comparisons to neighboring Kenya, where similar tax hikes recently fueled mass protests.
For many here, the memory of the ongoing massive protests in the neighboring nation, which saw thousands of angry protestors breach parliament gates and precipitated an unprecedented dismissal of cabinet by President William Ruto, remains fresh and unsettling.
“In Kenya, they rose up against injustice,” remarked Nur Ali, a shopkeeper in Mogadishu’s bustling Bakara Market, as he gestured toward a pile of imported goods awaiting sale.
“Here, we worry it will only add to our burdens.”
In the labyrinthine alleys of the old city, where centuries-old buildings bear scars of conflict and resilience, residents like Samira Hussein express deep-seated skepticism about the government’s motives.
“We struggle to afford basic necessities,” she lamented, her voice tinged with frustration.
“This tax feels like another weight on our shoulders.”
The streets of Mogadishu, once synonymous with turmoil and now tentatively embracing a fragile stability, reflect a complex tapestry of resilience and aspiration.
Amidst the buzz of mobile phones and the hum of generators powering makeshift businesses, the imposition of the digital tax underscores a broader narrative of economic uncertainty and political disillusionment.
While government officials remain tight-lipped on the mounting discontent, critics argue that the lack of transparency further alienates an already marginalized population grappling with unreliable infrastructure and pervasive corruption.
“It’s a tax on survival,” asserted activist Fatima Jama, whose advocacy work in low-income communities underscores the widening gap between policy-makers and those they purport to serve.
As dusk settles over the coastal city, casting a golden hue over the placid waters of the Indian Ocean, Mogadishu, a place where new construction projects symbolize tentative steps toward recovery, the debate over the tax underscores a delicate balance between economic pragmatism and social equity.
(Written by Abdi Guled)
————————————————————-
Have questions, tips, opinion pieces, or stories to share? Email us at info@somalistandard.com.
We’d love to hear from you
