But Al-Shabaab derives the bulk of its funding for its operations from taxing business people and most lucrative companies in Mogadishu and control of most businesses in rural Somalia.51 Over the years, the terrorist group has established a well-structured and oiled taxation infrastructure supported by courts, road tolls, and loyal revenue payers. At the edge of the knife, the group's operatives demands that all business people and companies pay tax to its agents.

But Al-Shabaab derives the bulk of its funding for its operations from taxing business people and most lucrative companies in Mogadishu and control of most businesses in rural Somalia.51 Over the years, the terrorist group has established a well-structured and oiled taxation infrastructure supported by courts, road tolls, and loyal revenue payers. At the edge of the knife, the group’s operatives demands that all business people and companies pay tax to its agents.52

Hormuud Telecom company is on the list of companies remitting huge taxes to Al-Shabaab, although some of its directors deny this. Other heavy contributors to Al-Shabaab’s tax kitty include Somtel, Golis Telecom Puntland, Telesom Somaliland, Dahabshiil Money transfer, Salaam Somali Bank, Taaj Express, Iftin Express, Al-Buruuj Construction, Becco Power, and general business companies that use the Port of Mogadishu.53 According to the staff members of Hormuud Telecom, Taaj Express, Salaam Bank iyo Dahabshiil Money Transfer, 41% of their colleagues collaborate directly or indirectly and pay taxes to Al-Shabaab.54 The militant group also receive Zakawat payment, an Islamic tax payment on assets.

Besides topping the list of Al-Shabaab financiers through huge taxes, Hormuud’s technology services have enabled Al-Shabaab to effectively run a splendid and lucrative economic empire that including support from the Somali diaspora, locals, sponsors, and sustained dawa (proselytizing) and linking Somalia to its neighbors

 

1. Omar Faruk, and Max Bearak, "If I don’t pay, they kill me’: Al-Shabab tightens grip on Somalia with growing tax racket,” Washington Post, August 30, 2019; retrieved on September 9, 2019.
2. "If I don’t pay, they kill me’: Al-Shabab tightens grip on Somalia with growing tax racket,” Washington Post.

1. "Somalia: List of companies that pay Al-Shabaab most,” Waagacusub News, September 3, 2019, accessed September 7, 2019.

1. International Policy Group’s interviews in Somalia, August 13-22, 2019.

and the world. In Mogadishu and much of rural Somalia, through Hormuud technology the group has operated a well-structured taxation system supported by its own infrastructure such as courts, road tolls, and loyal revenue payers.