Somaliland has officially launched the revised Public Financial Management Law No. 75/2025, unveiling a sweeping framework aimed at strengthening financial discipline, transparency, accountability and the protection of public assets.
The law, launched at an official ceremony in Hargeisa, establishes a unified legal and institutional framework for the planning, collection, allocation, spending, oversight and reporting of government finances, while clearly defining the responsibilities of state institutions involved in public financial management.
Officials say the legislation represents a major step in Somaliland’s financial management reform, moving the government toward a more modern, coordinated and transparent system for managing national resources.
Among its key provisions are stronger internal audit mechanisms, clearer financial reporting requirements, greater parliamentary oversight of the national budget and increased opportunities for public participation in the budget process.
The law also provides the foundation for introducing a Single Treasury Account (STA) to improve government cash management and strengthen controls over public funds. It further establishes clearer procedures for managing government assets, debt, grants and guarantees.
The legislation strengthens the distinction between internal and external auditing, with internal audit focusing on institutional controls while the Auditor General maintains responsibility for examining and reporting on the management and use of public finances.
The government says the reforms are also designed to reduce opportunities for corruption, financial mismanagement, misappropriation and negligence, while promoting the use of modern technology in government accounting and financial management.
The launch ceremony brought together senior officials from key government institutions, including the Minister of Finance and Economic Development, Chairman of Tender Board , Auditor General, senior Ministry of Finance officials, Chairman of the Good Governance Commission, Chairman of the National Planning Commission and Chairperson of the House of Representatives’ Economic Affairs Committee.
The State Minister of Finance and Economic Development and the Deputy Accountant General were also among those attending.
Presentations on the new legislation were delivered by the Chairman of the Institute of Certified Public Accountants of Somaliland (ICPAS) and the Director of the Public Financial Management Reform Unit, who highlighted the law’s significance and its expected impact on modernizing Somaliland’s financial governance.
The new law is ultimately intended to ensure that public money can be tracked from where it comes from and where it is allocated to how it is spent and what results it delivers, reinforcing accountability at every stage.
Officials described the legislation as a cornerstone of Somaliland’s efforts to build a more efficient, transparent and accountable state financial system, with stronger protection of national assets and improved public service delivery.