HomeTop NewsSomalia Faces 40% Drop in Imports and Rising Inflation, Cabinet Responds

Somalia Faces 40% Drop in Imports and Rising Inflation, Cabinet Responds

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Somalia’s federal cabinet today approved new security regulations and reviewed stark new data showing a 40% drop in imports and double-digit inflation in food and healthcare costs, following disruptions to shipping through the strategic Hormuz Strait.

The weekly meeting, chaired by Prime Minister Hamza Abdi Barre in Mogadishu, highlights how global geopolitical tensions are now directly hammering one of the world’s most fragile economies. With the Red Sea crisis choking supply routes, Somali households face sharply rising living costs just as the government struggles to stabilize security and public services.

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The cabinet received a detailed briefing from the National Statistics Agency revealing that food prices have jumped 10%, while healthcare services surged 14% since the Hormuz disruption began. Other commodities saw even steeper increases. Officials noted that the 40% decline in incoming goods has created acute pressure on local markets.

In response, the government ordered all relevant ministries to take immediate, tailored measures to ease the burden on civilians. No specific interventions were announced, but the directive signals urgent policy action ahead.

“I commend the security and stability in much of the country, especially the capital,” Prime Minister Barre told the cabinet. “But I warn against any disruption to our peace. I call on all citizens to safeguard the calm we have built.”

Separately, the cabinet approved the Private Security Services Regulation and an Internal Audit Charter submitted by the Ministries of Internal Security and Planning. These are seen as steps to improve governance and oversight of non-state security actors.

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The Energy and Water Resources Ministry also presented a risk assessment on flash floods and threats to water sources from seasonal river overflows. Meanwhile, the Ministry of Endowments and Religious Affairs reported that Hajj preparations are on track, with a dedicated terminal now operational at Aden Adde International Airport for pilgrims.

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