How Al-Shabaab spends millions of dollars on purchasing weapons?

MOGADISHU, Somalia - For over a decade, Al-Shabaab militants have been wreaking havoc in Somalia and across the borders, with experts noting that the group could be having a strong financial base that helps it to execute operations with impunity and little strain.

Al-Qaeda linked group has been spending millions of dollars in purchasing weapons, a report has revealed, in what could force security apparatus to change strategy in dealing with the militants.

Hiraal Institute, a Mogadishu-based Security Think Tank, noted that at least $24 million goes for purchasing weapons annually, thus strengthening the group, which controls large swathes of rural central and southern Somalia.

According to the report, Al-Shabaab users various methods to procure weapons, including direct purchases from local black markets, and from arms traders contracted to buy and deliv­er weapons from abroad, mainly Yemen.

The group, the report notes, majorly focuses on the acquisition of firearms, ammunition, explosives, and other lethal capacity weapons, with nearly a quarter of its budget going to such transactions.

“Out of an annually 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,” the report said.

Samira Gaid, the executive director of Hiraal Institute, told VOA Somali that during research they had access to al-Shabab's annual budget documentation. They have also interviewed former al-Shabab members, clan leaders, business owners, government officials, and other sources who have knowledge of how the group functions.

“Just like the FGS [Federal Government of Somalia], the biggest chunk of its resources is currently being spent on security-related expenses; these, of course, include wages and operational costs,” Gaid said. “The group also manufactures certain types of ammunition and explosives, and a certain amount of its budget goes towards that.”

Throughout the electioneering period in Somalia, the group has increased attacks, mainly targeting security forces and innocent civilians. This week, the group attacked the port city of Bossaso and Beledweyne, a town in Central Somalia.

On Monday, the group claimed responsibility for a roadside explosion, which targeted a convoy escorting Said Abdullahi Deni, the president of the Puntland. Deni survived the attack, but two of his soldiers were killed and four others injured.

On Saturday, Al-Shabaab also claimed responsibility for a suicide bombing in Beledweyne in which 15 people were killed and at least 20 others injured.

To finance its operations, Al-Shabaab has a sophisticated extortion system that 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.

Al-Shabaab as well as Islamic State militants have been collecting extortion money from businesses in Mogadishu for years. Last month, death threats from Islamic State led to the closure of some businesses that refused to pay extortion money.

The stores later reopened after the government deployed security forces. Police also told the businesses they would not have the stores closed except on orders from the government.

The store closures forced Somali Prime Minister Mohamed Hussein Roble to instruct Interior Security Minister Abdullahi Mohamed Nor and the security agencies to come up with a plan to counter the terrorist threats and harassment of traders at Somalia's biggest market.

The U.N. Panel of Experts report on Somalia estimated that Al-Shabaab now operates around 100 checkpoints throughout the country. In one of the most profitable checkpoints north of Kismayo town, which sees an average of 30 trucks pass through in a 24-hour period, the panel reported that al-Shabab collects an estimated $15,000 to $30,000 per day.

The institute recommended the implementation of several measures aimed at disrupting al-Shabab's weapons purchases, including the targeting of key militant explosive experts, targeting individuals involved in the arms trade, and countering arms imports from the Gulf of Aden.

GAROWE ONLINE