Economy

Somalia’s 450 Million US Dollar Khat Market Puts Ethiopia’s Trade in Focus

BirrMetrics · 5 hours ago · Read the Full Story on BirrMetrics
Somalia’s 450 Million US Dollar Khat Market Puts Ethiopia’s Trade in Focus
AI SUMMARY

A new economic report reveals that Somalia imported khat worth 450.4 million US dollars in 2025 while Ethiopian shipments experienced a 35 percent decline.

  • Somalia imported khat worth 450.4 million US dollars in 2025.
  • The 2025 khat import bill exceeded the federal government’s domestic revenue of 404.3 million US dollars by 46.1 million US dollars.
  • The import value was equivalent to nearly half of Somalia's 2025 livestock export earnings of 922.9 million US dollars.
  • The figures are attributed to the State of the Economy Report 2026 prepared by Somalia’s National Economic Council using Central Bank of Somalia data.
  • Ethiopia exported 2,580 tonnes of khat to Somalia in the first quarter of the 2025/26 fiscal year, marking a 35 percent decline from the previous year.
  • Kenya’s Agriculture Minister Mutahi Kagwe stated in December 2025 that Kenya exported between 13 and 17 tonnes of miraa to Somalia daily.
  • Somalia’s khat-related customs collections reached 17.15 million US dollars in 2024, which was approximately 10 percent below the government target.
  • Food remained Somalia’s largest import category in 2025 at approximately 2.4 billion US dollars.
  • The World Bank estimated Somalia’s domestic revenue at 6.3 percent of gross domestic product in 2025, up from 6.2 percent a year earlier.