Somalia names new revenue chief

Faisal Muhammed Hashi the new Director General of the independent Somalia Revenue Authority (SRA).

Faisal Muhammed Hashi has been appointed the inaugural Director General of the independent Somalia Revenue Authority (SRA), as the country seeks to overhaul revenue administration and become more financially self-reliant.

The Council of Ministers approved Hashi for the five-year position by a majority vote, following a proposal by the Minister of Finance.

He will lead the establishment and operationalisation of SRA.

The appointment marks an institutional change in Somalia’s public finance system.

Revenue administration was previously domiciled in the Ministry of Finance, through its Directorate General of Revenue, which coordinated tax and customs operations.

Under the new framework, those functions will be administered through an independent authority.

The SRA was established through legislation approved by Parliament and assented to by the President.

Its creation is part of wider reforms intended to strengthen domestic resource mobilisation, improve accountability and reduce dependence on foreign assistance.

The authority’s mandate is expected to include improving tax compliance, broadening the revenue base, harmonising collection procedures and modernising systems for administering government revenue.

The reform is intended to reduce fragmentation, clarify institutional responsibilities and support a consistent approach to collecting taxes and other public revenues nationwide.

It will also improve taxpayer services and coordination between the Federal Government, Federal Member States and local authorities.

Coordination will be vital as Somalia develops its fiscal federalism framework.

Hashi is familiar with the sector’s challenges.

He became Director General of Revenue at the Ministry of Finance in May 2023, working on revenue mobilisation policies, tax administration reforms and modernisation of customs operations.

He also chaired the Intergovernmental Fiscal Federalism Technical Committee, bringing together federal and state finance officials.

His previous work included the Ministry of Finance’s Medium-Term Revenue Roadmap for 2024–2027.

The plan seeks to expand the tax base and improve compliance, targeting annual revenue growth equivalent to 0.3 percentage points of gross domestic product.

It aims to enable the government to finance operating expenditure through domestic resources by 2027.

The authority will be judged on its ability to deliver measurable gains.

Priorities include closing revenue leakages, strengthening transparency and encouraging businesses and individuals to meet their tax obligations.

Ultimately, the reform is intended to give Somalia greater capacity to finance public services, infrastructure and security from domestic resources, while reducing vulnerability to fluctuations in external funding.

Hashi’s five-year term will test whether an independent institution can deliver that shift.