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Project Case Study

Strengthening Somaliland’s domestic revenue raising capabilities

Technical Assistance to the government of Somaliland to strengthen revenue mobilisation & administration

In preparation for the establishment of an effective and efficient Somaliland Revenue Authority, the Strengthening Somaliland Revenue Policy and Administration Project encompasses technical assistance to support the Government of Somaliland to broaden its tax base, as endorsed by President Silanyo in his 2014 Budget Policy statement to Parliament. More specifically, Adam Smith International is providing strategic support, capacity building and training in the establishment of a roadmap of reforms, revenue policy, tax and customs administration, and organisational strengthening.

Project info

Strengthening Revenue Policy and Administration in Somaliland



  • Government of Somaliland

The project encompasses four broad areas of support:

  • Define an overarching roadmap and timetable for the establishment of the Somaliland Revenue Authority. This consists of supporting the production of a Government- owned roadmap for the establishment of the Somaliland Revenue Authority. Additionally the government will be assisted in delivering a strategic communication plan concerning the reform and the upcoming changes in the revenue administration system. While drawing on international experience to prepare a realistic timetable, the roadmap will be designed in the context of ongoing Government plans to strengthen trade facilitation along the Berbera Corridor, as well as other PFM reform initiatives as laid out in the PFM Strategy.
  • Review and provide recommendations as appropriate on tax and customs policies and rates. This entails providing technical assistance to the Government to carry out a review on all tax and Customs-related policies and rates. Subsequently, recommendations will be provided supporting the establishment of a progressive policy framework for taxation that will aid the Government in achieving their objectives of increasing domestic revenue and broadening the tax base.
  • Improve revenue collection and administration systems and processes. This consists of the design and implementation of basic tax collection and administration systems to enable the efficient and effective application and enforcement of the Revenue Act. This will also encompass the initial steps to automate these systems, with a simple, but fit for purpose IT system.
  • Institute immediate organisational reforms focused on management and human resources, as well as organisational restructuring, in preparation for the future establishment of the Revenue Authority. This encompasses support to the Government to re-organise and manage the current Inland Revenue and Customs Departments within the Ministry of Finance in preparation for their devolution to the Somaliland Revenue Authority. This will include management and organisational reforms covering capacity building, human resources and ICT capability. A structured change management programme will also be carried out.

By rendering the country’s revenue system more efficient, transparent and accountable, project results are ultimately expected to contribute to a significant increase in tax collection at the national level.

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