Mogadishu

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Working in Mogadishu

Local Economy

The local economy of Mogadishu was traditionally centered on commercial and financial trade. This economy faltered and all but collapsed during the fraught years of civil war. Since stabilizing in 2012, Mogadishu has once again begun to function as a financial and commercial hub for Somalia. As a result, the city has become home to a number of transnational companies and seen an expansion of the real estate sector. 

The city is also home to a significant telecommunications hub, suggested to be one of the areas of the Mogadishu economy where growth is most likely. For example, Mogadishu plays host to Hormuud Telecom, the most prominent telecommunications company in southern and central Somalia. 

In 2013, a new foreign investment law was passed by the Ministry of Commerce and Industry. This law secures a framework for foreign investment in the nation. 

Hard currency is advised for usage in Somalia, usually US dollars, although the local currency is the Somali Shilling (SOS), where 1 USD is worth around 705 SOS. Credit cards are not accepted anywhere in Somalia. 

Work Permits for Mogadishu

Expatriates seeking employment in Mogadishu need to obtain a work permit. In order to do this, expats must find a stable sponsor for the duration of their stay in the country. This is easier to achieve if the employment you are undertaking is permanent as sponsorship can be obtained from the company you are working for. 

It is worth contacting your local embassy for more information regarding working visas for Somalia. 

Taxation in Mogadishu

In 2014, Somalia revealed plans to reintroduce taxation for the first time in 23 years. The new tax system is to be comprised of a mélange of direct and indirect taxes on individuals and corporations. 

The government plans initially to tax individuals and corporations at a rate they consider to be 'reasonable' seeing as no one has had to pay any tax for the past 23 years. Specific rates are likely to be announced soon. 

At present, the Somalian sales tax rate is 10%.

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