Al-Shabaab boasts $24m annual war chest-report

GOOBJOOG NEWS/MOGADISHU: A report by a Mogadishu-based research group, the Hiraal Institute, has revealed that Al-Shabaab runs a $24 million purse to fund its armouries. 

The 25-page report titled “Al-Shabaab Weapons”, reveals that Al-Shabaab spends at least $ 2 million a month on various weapons, amounting to $24 million a year, with nearly a quarter of its budget going to the acquisition of firearms, ammunition, explosives and other lethal capacity weapons.

“Out of an annual planned expenditure of approxi­mately USD 100 million, Al-Shabab’s annual planned ex­penditure on arms procurement is assessed to be USD 24 million, budgeted monthly at USD 2 million,” said the report.

The report further said the militant group purchases weapons from local black markets, and arms suppliers contracted to buy and deliv­er weapons from abroad, with Yemen being the country of choice as it shares a maritime border with Somalia.

Hiraal Institute Executive Director Somali Gaid said the think-tank had access to Al-Shabab’s annual budget documentation. They also interviewied former Al-Shabaab members, traditional elders, business people and government officials.

The report also said that Al-Shabaab has the capacity to manufacture certain types of ammunition and explosives, with a certain portion of the budget allocated for that. The group is also said to acquire some of its weapons by disarming government and AMISOM forces fighting in the south and central regions of the country, where they are heavily based.

“At home and abroad, the group can easily buy weapons from anywhere and they also have the capacity to make explosives while the Somali government and authorities are unable to do so, due to sanctions,” said the report.

“Last year we conducted financial research to confirm that Al-Shabaab collects nearly $ 180 million annually, but we expect this year to be even higher, as the organization raises taxes.” said Samira Geed.

A 2021 United Nations report by the Panel of Experts on Somalia said that the terror group is estimated to operate around 100 checkpoints throughout the country, with one of the most profitable checkpoints being the northern part of Kismayo town. The panel said the route can see an average of 30 trucks in a day, with Al-Shabaab estimated to collect $15,000 to $30,000 per day.

To finance its operations, Al-Shabab has a sophisticated extortion system which it uses to collect money from the business, agricultural, and livestock sectors, according to a 2021 United Nations report by the Panel of Experts on Somalia.

Just last month, traders in Mogadishu’s largest market, Bakara, closed their business premises in protest to extortion fees levied reportedly by ISIS but Al-Shabaab kept mum over the matter. Normalcy returned after the government deployed security forces.

As the country goes through a painstakingly slow election process, Al-Shabaab has continued to stage attacks with heightened intensity. On Monday, the group claimed responsibility for the attempted assasination of the Puntland Head of State Said Abdullahi Deni, which left two soldiers dead and four others nursing injuries. 

The group also said it was responsible for the Beletweyne explosion, which claimed the lives of 15 people and injured at least 20 others.