Mogadishu, Somalia, July 13, 2023 The Cabinet of the Federal Government of Somalia, in a landmark decision, has officially approved the tariffs and licensing regulations for the country’s electricity sector. This pivotal step follows a comprehensive presentation made by the Honorable Minister of Energy and Water Resources, H.E. Jama Taqal Abbas who detailed the significance and benefits of the newly developed tariffs and licensing frameworks.

During the ministerial session, the Minister Jama, provided an in-depth analysis of the current state of Somalia’s electricity sector, highlighting the necessity for a standardized tariff system and stringent licensing regulations. The presentation outlined the anticipated positive outcomes of these regulations, such as fostering a competitive market, improving electricity service delivery, and ensuring the sustainability and reliability of energy supplies throughout Somalia.

The Minister emphasized that “the approval of these tariffs and licensing regulations marks a pivotal moment for our nation. It is a fundamental step towards addressing the critical challenges that have long plagued our electricity sector. These include providing affordable electricity while ensuring that the electricity service providers have a viable business model. This framework will also encourage investment in our energy generation, transmission, distribution and will be a cornerstone for economic development and prosperity.”

In the wake of the Cabinet’s approval, the Minister H.E. Jama Taqal Abbas extended heartfelt gratitude to the cabinet members for their endorsement, stating, “I am immensely thankful for the support and trust of the Cabinet in passing these vital regulations. Your endorsement reflects our collective commitment to transforming the energy sector in Somalia and uplifting the lives of our citizens and address the critical challenges we face which is a high electricity tariff.

The newly approved regulations signify the Federal Government’s dedication to improving the regulatory environment for electricity in Somalia. The move is expected to attract private investment, boost economic growth, and provide reliable and sustainable energy to the people of Somalia.

This historic reform sets the stage for a more prosperous Somalia, powering progress through sustainable and stable energy solutions. The Ministry of Energy and Water Resources reaffirms its commitment to implementing these regulations effectively and overseeing a smooth transition to a regulated electricity sector that meets the needs and aspirations of all Somalis.