Somaliland Slashes Electricity Tariffs in Bid to Ease Cost of Living

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HARGEISA, Somaliland – December 1, 2025 – The Somaliland government has announced a significant cut in electricity tariffs, a move designed to provide relief to households and businesses across the nation.

In an official directive issued this week, the Ministry of Energy and Minerals (MoEM) set the new national electricity price at 0.59 US cents per unit, down from the previous rate. The reduction, ordered by Energy Minister Eng. Axmed Jaamae Barre, follows through on a pledge by President Muse Bihi Abdi to lower living costs.

The ministry cited a presidential directive and a newly implemented bulk fuel procurement system as key factors enabling the price reduction. This system, established to centralize purchasing for utility companies, is intended to create efficiencies and shield consumers from volatile global fuel prices.

“This tariff cut is a direct reflection of our commitment to providing affordable and reliable electricity for all,” a ministry representative stated. “It is a critical step toward economic relief and stimulating growth.”

The new rate will be applied nationwide starting December 1, 2025, though the directive notes that the port city of Berbera will be exempted due to its distinct operational framework.

The decision has been welcomed by the business community, which anticipates lower operational costs and increased competitiveness for local industry.