HARGEISA, Somaliland — The Republic of Somaliland has secured more than $221 million in international aid and development funding throughout 2024, according to officials here, a significant financial endorsement that comes as the Republic of Somaliland intensifies its campaign for formal recognition on the global stage.
The substantial assistance package, detailed in a report from Somaliland’s Ministry of Planning and National Development, represents growing international confidence in the territory’s stability and governance capabilities. The funds are directed toward health, education, infrastructure, and humanitarian relief in a region that has maintained relative peace and democratic transitions despite its unresolved political status.
The aid figures emerge amid increasingly complex geopolitical maneuvering in the Horn of Africa, where Somaliland’s strategic position and governance achievements have attracted both development partnerships and strategic interest from regional powers. The funding arrives as Somaliland actively pursues what one official called “direct donor funding” to bypass the traditional aid distribution channels that flow through the federal government in Mogadishu.
A Strategic Funding Shift
The $221 million in international assistance reflects what development analysts describe as a pragmatic approach by donors to Somaliland’s consistent governance amid regional instability.
“The aid should remain neutral, devoid of being linked to political conflicts within the region,” stated Ahmed Mohamed Diriye (Toorno), Somaliland’s former Minister of Planning and National Development, in correspondence with international partners earlier last year. “It should focus on uplifting the well-being of all individuals, including vulnerable groups, irrespective of their political affiliations”.
This substantial funding arrives through multiple channels, with international humanitarian organizations contributing $119.5 million to support both emergency response and long-term development programs. The United Nations provided $79.3 million focused on strengthening public services and protecting vulnerable communities, while the Somaliland Development Fund allocated $10.45 million for economic infrastructure, rural development, and public administration reforms.
Smaller but significant contributions included $9.17 million from the World Bank for economic resilience and social progress initiatives, and $3.29 million from Germany’s development agency, GIZ, for technical assistance and institutional capacity-building programs.
Table: Somaliland’s 2024 International Aid Allocation
| Donor | Funding Amount | Primary Focus Areas |
| International Humanitarian Organizations | $119.5 million | Emergency response, long-term development |
| United Nations | $79.3 million | Public services, vulnerable communities |
| Somaliland Development Fund | $10.45 million | Economic infrastructure, rural development |
| World Bank | $9.17 million | Economic resilience, social progress |
| GIZ (Germany) | $3.29 million | Technical assistance, capacity building |
The Geopolitical Backdrop
The funding report emerges against a backdrop of rising regional tensions following a memorandum of understanding signed between Somaliland and Ethiopia in January 2024. That agreement, which would grant landlocked Ethiopia access to the Gulf of Aden in exchange for potential future recognition of Somaliland’s statehood, has drawn sharp criticism from Somalia and other regional actors.
In Cairo, Egyptian President Abdel Fatah al-Sisi offered Somalia his firm support, delivering a warning to Addis Ababa: “My message to Ethiopia is that trying to seize a piece of land to control it is something no one will agree to”. The strong statement raised concerns that Cairo might become directly involved in the escalating dispute between Mogadishu and Addis Ababa.
Ethiopian officials, however, have characterized Mogadishu’s objections as temporary setbacks. Abdulaziz Ahmed Adem, a senior advisor to Ethiopia’s Ministry of Foreign Affairs, described the opposition as a “hiccup,” suggesting it represents an attempt to divert attention from Somalia’s internal political challenges.
Somalia’s Firm Opposition
The Somali government in Mogadishu has maintained its consistent position that Somaliland remains part of its sovereign territory and has rejected the port deal as a violation of international norms.
Somalia has successfully mobilized regional support for its position, with the Intergovernmental Authority on Development, an East African inter-governmental organization, issuing a statement calling on all members to “respect one another’s sovereignty and territorial integrity”.
The dispute has exposed underlying tensions in international development approaches to the region. While Somalia receives substantial international assistance itself—with the World Bank maintaining an active portfolio of $2.80 billion comprising 25 projects in the country—Somaliland’s direct appeal to donors represents a challenge to Mogadishu’s authority.
International Community’s Cautious Engagement
The substantial funding to Somaliland highlights the international community’s balancing act—maintaining formal relations with Somalia while engaging directly with Somaliland’s effective administration.
This careful approach was articulated in the UK Parliament recently when Foreign Office Minister Anne-Marie Trevelyan stated: “The UK needs to tread carefully in the Horn of Africa.” Despite having “a permanent diplomatic presence in Somaliland” and “strong links,” she explained that recognition was not under consideration because “it would not be the right thing to do for stability in the wider region”.
Similar cautious engagement characterizes many donor relationships with Somaliland. While direct development funding flows to Hargeisa, formal recognition remains off the table for most of the international community.
Development Challenges and Strategic Positioning
Despite its governance achievements, Somaliland faces significant development challenges that the international funding seeks to address. Critical infrastructure deficits hinder economic progress, with the government exploring innovative approaches to revenue generation, including land and property taxation reforms to finance urban development.
The territory has also faced recent setbacks to its stability narrative. Conflict in the eastern city of Las Anod has claimed a number of lives and displaced another numbers, damaging Somaliland’s carefully curated reputation for peace. Some analysts suggest that international engagement itself may have contributed to internal tensions by “renewed hopes of Somaliland becoming internationally recognized as an independent state, dramatically raising the stakes, and intensifying competition amongst political elites over control”.
The Path Forward
As Somaliland continues its three-decade pursuit of recognition, the substantial international funding it secured in 2024 represents both practical support for its development and subtle acknowledgment of its governance achievements. The distribution of this aid across humanitarian, infrastructure, and governance sectors demonstrates donor confidence in Somaliland’s administrative capabilities.
The coming years will test whether this substantial international engagement evolves into formal diplomatic recognition, particularly as regional powers like Ethiopia consider breaking with international consensus. For now, the $221 million in development assistance represents both a lifeline for development and a strategic tool in one of the world’s most protracted recognition struggles.
As one European diplomat stationed in the region commented anonymously: “Our development partnership with Somaliland reflects the reality on the ground, even as our diplomatic positions reflect international law and regional stability concerns. Bridging that gap remains the fundamental challenge.”
