Last updated on October 1, 2025
Ever since Somaliland declared itself independent in 1991, it’s been ruled by the political elite. Supposedly a “democracy,” Dr. Claire Elder of Oxford reveals every election since 2002 has seen high rates of state interference, intimidation, and stifling of opponents. Legislators have infinite terms and any criticism of public officials is criminalized.
Economically, Somaliland’s elites wield their power like a filter, opening the doors to corporations that can personally enrich them, while blocking any investments that may undermine their societal influence.
For example, political elites permitted investment in the Berbera port, generating profits that should’ve gone to improving roads, energy grids, and water infrastructure. Instead, the money went straight to the government’s pockets.
And in 2016, elites vetoed a bill aimed at allowing foreign banks that would have stabilized the economy, fearing they would undermine domestic monopolies.
As the elites stuff their pockets, the rest are left to fend for themselves, exacerbating inequality. The statistics show: for every 1% increase in investment in Somaliland, inequality rises 2%, enabling the rich to hoard limited resources like food and healthcare and leaving less for the 1.5 million currently in poverty.
Political elites not only hamper the economy, they raise tensions. Analyst Ashenafi Endale reported a clash between Somaliland and Ethiopian military officials erupted into gunfire along their border, leaving 200 dead. Although talks quickly emerged, Ethiopia is on hair-trigger alert.
This can be traced back to Somaliland elites who are pushing to host bases from foreign powers like Israel and the US to strengthen their military capabilities. However, Ethiopian officials view a foreign military buildup on Somaliland’s soil as a stab in the back and have warned it would be considered quote a declaration of war.
Ethiopia is not one to mess with – they’ve gone to war before. In 1998, war between Eritrea and Ethiopia erupted after Eritrea became independent, sparking bloodshed that killed 100 thousand and displaced over one million.
Somaliland remains in the hands of self-serving elites, entrenching corruption, widening inequality, and dragging the region toward chaos. The people are in need of economic assistance and stability, but the world must make sure the elites don’t get their hands on it first.


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