Tuesday July 14, 2026
Bosaso (AX) — The shutdown of Bosaso’s commercial markets and repeated interruptions at the port have choked off trade and sent ripples through everyday life, the Puntland State Non-State Actors Association (PUNSAA) said, warning the dispute risks inflicting long-term economic pain.
In a Monday statement, PUNSAA said the market closures have reached a third consecutive day, while disturbances at Bosaso port have now stretched into a fourth day.
The association said the stoppage of trade and port activity has hit basic services, jobs and livelihoods for thousands of families, especially daily wage earners and small shop owners.
PUNSAA cautioned that, if the impasse persists, Puntland State could see rising inflation, shortages of key goods and deeper economic hardship for residents across the region.
The group described Bosaso port as the backbone of Puntland State’s trade, saying any interruption to its operations carries significant economic consequences.
PUNSAA urged Puntland State’s authorities, traders, the port authority and other relevant actors to meet immediately to resolve the dispute and restore market and port operations before further social and economic damage occurs.
The row between business owners and the Puntland State administration centers on newly imposed taxes and service fees introduced by Puntland State authorities and DP World.
Jama Hurre, a Bosaso businessman, said traders are not refusing to meet mandatory tax obligations but are objecting to extra port service charges at a time when inflation, drought and wider economic strain are already squeezing margins.
He added that the fee increases are placing additional pressure on both businesses and consumers.
Puntland State’s deputy finance minister, Ahmed Yasin Saleh, defended the charges as part of an agreement to fund the expansion and modernization of Bosaso port.
Saleh said the government postponed the fee increase for two and a half years to accommodate traders’ difficult economic circumstances.
He said the project’s first phase, completed between January and December 2023, included construction of a new 150-meter quay, renovation of part of the old port, expansion of the berth, upgraded lighting, dredging of the shipping channel and delivery of new equipment.
Saleh said that equipment included a tugboat valued at $5 million and modern cranes.
He added that planning is underway for the next phase, which foresees a new 300-meter terminal and a dedicated corridor for livestock exports.
The deputy minister urged traders to accept the new fees, arguing the revenue is essential to continue developing port infrastructure and that undermining the fee system would stall Puntland State’s economic growth.
In December 2022, DP World and Puntland State signed a construction agreement to expand and upgrade Bosaso port.
The 12-month project included building a 150-meter quay and repairing an existing 215-meter quay, plus development of a 3,000-square-meter container yard, a 4,000-square-meter container stripping yard and upgrades to the port gate area to improve access control.
It was not immediately clear whether the 150-meter quay Saleh referenced is the same quay described in DP World’s 12-month development plan.
