By M.A. Egge
The Persian Gulf conflict has inadvertently taken its toll in Somaliland as living costs have gone up following hiking of prices of basic commodities given the disruption of the flow of oil and associated goods from the region, hence adversely affecting the purchasing power of the populaces.
While acknowledging the adverse effects on local livelihoods, the state has called for the bolstering of local oil reserves and food security in order to forestall circumvent repeat of such scenarios in future.
The government has likewise heeded that the issue and the magnitude of its effects is of global impact and is not only confined to the country.
The state at the same time has been clear that it is closely monitoring the situation and in close contact with stakeholders.
This matter and more came to light as it was pondered over at the 57th session of the Council of Ministers chaired by the President H.E. Abdirahman Mohamed Abdillahi Irro, flanked as usual, by his deputy the VP H.E. Mohamed Ali aw Abdi, was held on Wednesday at the Presidential Palace.
It is worth noting that the Persian Gulf war has come at a time that the Horn of Africa region was reeling in prolonged droughts and famine, hence the rains that fell over the week in many parts has brought a sigh of relief; despite the fact that flush floods usually had its own havoc it leaves on its wake, which it did.
During the weekly cabinet session several issues that were focussed on as per press release from the Presidency included the following: –
- National Security Briefing:
The Minister of Interior and National Security, Hon. Abdalle Mohamed Arab, briefed the Council on the overall security situation in the country. He stated that Somaliland’s security remains stable and peaceful, with no incidents of unrest reported across all regions.
He further noted that the police forces and other security agencies performed effectively in maintaining law and order before and during the Eid al-Fitr celebrations, enabling citizens to celebrate in peace. The Minister commended the vigilance and dedication of the security forces.
- Revenue and Economic Update:
The State Minister of Finance and Economic Development, Hon. Ismail Mawlid Abdullahi, presented a report on national revenue and economic performance. He highlighted that despite global challenges; efforts are ongoing to maintain revenue collection systems and financial stability.
He emphasized the impact of conflicts in the Middle East, which have led to increased fuel and food prices, directly affecting import taxes and national revenue. He noted Somaliland’s heavy reliance on Middle Eastern markets and the growing impact of global changes on the economy.
The Minister proposed exploring new trade markets to diversify revenue sources and reduce dependency, and recommended establishing a national strategic reserve for food and fuel.
- Eid Celebrations Across Regions:
Ministers who travelled to various regions to celebrate Eid with local communities reported that the festivities were conducted in a peaceful and joyful atmosphere, reflecting unity and national cohesion.
They engaged with regional and district authorities, traditional leaders, and community members, emphasizing the importance of maintaining peace, unity, and national sovereignty.
The ministers also praised the public for demonstrating good conduct, patience, and solidarity, describing it as a sign of the country’s growing social maturity.
- Rainfall Update and Agricultural Impact:
The Minister of Agricultural Development, Hon. Mahmoud Ige Yusuf, briefed the Council on the seasonal rains. He described the rainfall as promising for agricultural production and livestock, though noting that in some areas it has caused damage, including flooding and destruction of farmland.
He urged the public to take precautions during the rainy season, particularly avoiding valleys and flood-prone areas.
The Minister also encouraged farmers to take advantage of the expected Gu rains and adopt water conservation techniques to boost agricultural productivity.
- Impact of Middle East Conflict on Prices:
The Minister of Trade and Tourism, Hon. Abdirahman Hassan Noor, outlined the effects of the Middle East conflict on the cost of living, particularly rising fuel and food prices.
He stated that while these challenges stem from global conditions beyond domestic control, coordinated efforts between the government and business community are essential to mitigate their impact.
Measures taken by the government include:
-Regular market inspections to control inflation
-Monitoring and regulating fuel prices
-Engaging in dialogue with traders to maintain market stability
The Minister urged business leaders to act responsibly and avoid unjustified price increases, in order to protect public welfare and purchasing power.