Somalia’s Puntland State minister alleges ISIS earned $10M from gold, charcoal smuggling
Puntland State minister says ISIS raised $10 million from illicit gold, charcoal as foreign fighter push falters
AXADLE, Somalia — Foreign fighters from Syria, Turkey, Morocco, South Africa, Nigeria and Kenya have infiltrated Somalia’s Puntland State in recent years, but their efforts to recruit local Somalis have largely fallen flat, the region’s environment minister said, as authorities tout battlefield gains and a clampdown on the militants’ financing.
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Mohamed Abdirahman Farole, Puntland State’s Minister of Environment and Climate Change and a key architect of the Puntland State Marine Police Force, said the Islamic State group’s local faction has relied on a web of illicit income streams in the coastal Bari region to sustain its operations.
“ISIS used protection rackets, illegal gold mining and charcoal smuggling to generate at least $10 million,” Farole said, adding that the proceeds have been routed to support terrorist operations in Mozambique and other countries in the region.
According to Farole, Puntland State has steadily pressured the group since launching the Hilaac operation in the Al-Miskaad mountains in December 2024. He said regional defense forces have killed “hundreds” of fighters — including foreign militants — and captured several Islamic State leaders alive in recent months.
“Our forces have dealt a decisive blow to ISIS in major combat operations, weakening their networks and disrupting their recruitment efforts,” he said.
Farole cautioned that the presence of foreign fighters still poses a growing threat to Puntland State and the Horn of Africa, even as local recruitment remains limited. “We are working closely with Somali national forces and international partners to disrupt these networks and prevent further recruitment,” he said.
Authorities in Puntland State have increased coastal patrols and tightened surveillance on suspected smuggling corridors, particularly those linked to illegal charcoal exports — a trade that has long funded armed groups and damaged fragile ecosystems. Farole emphasized that curbing the financial arteries of extremist organizations is as critical as neutralizing their fighters on the battlefield.
International partners, including the United States and the United Arab Emirates, continue to support Puntland State’s defense forces through airstrikes, intelligence sharing, training and logistics aimed at countering ISIS and al-Shabab across Somalia and the broader East Africa region.
Farole’s remarks highlight twin fronts in Somalia’s security campaign: kinetic operations against entrenched cells in mountainous hideouts and a crackdown on the money trails that keep those cells alive. Puntland State officials argue that sustained pressure on both fronts is degrading the Islamic State’s ability to regroup or expand.
Key points from Farole’s remarks:
- Foreign fighters from the Middle East and Africa have entered Puntland State, but their efforts to recruit locals have seen limited success, he said.
- ISIS in Puntland State generated “at least $10 million” through protection rackets, illegal gold mining and charcoal smuggling, funds he said were sent to support operations in Mozambique and beyond.
- The Hilaac offensive in the Al-Miskaad mountains has killed hundreds of fighters and yielded high-value captures, according to Puntland State authorities.
The minister did not provide a detailed breakdown of the alleged funding flows or specific timelines for transfers abroad. But the focus on illicit commodities tracks with patterns identified by regional security analysts, who say smuggling networks across the Gulf of Aden and the Horn exploit rugged coastlines and porous borders to move people, minerals and charcoal.
For Puntland State, the stakes are immediate: choke off cash, deny sanctuary in the mountains and prevent foreign fighters from finding a foothold among local communities. Farole said those efforts are ongoing — and require continued cooperation among local, national and international partners to keep pressure on both the militants and the financiers who enable them.
By Ali Musa
Axadle Times international–Monitoring.