Somalia: US ends Danab forces funding, economic crisis looms

[Deeq A.]

Mogadishu, Somalia – The United States has halted funding for the Danab special forces unit of the Somali National Army (SNA) and significantly reduced aid channeled through the US Agency for International Development (USAID), Somalia’s Finance Minister Bihi Iman Egeh told parliament on Wednesday.

He warned that the sudden funding cuts have severely strained the national budget, threatening to destabilize the country’s fragile security situation and development efforts.

The Danab brigade, a specialized unit of the SNA, was established with US training and support to combat terrorism and stabilize Somalia.

“The biggest burden the government faces at this time is the loss of U.S. funding previously allocated to the Danab forces,” Egeh stated.

The cessation of support threatens to undermine the unit’s operational capacity, which has been crucial in the fight against Al-Shabaab, the Al-Qaeda-linked militant group that controls swathes of Somali territory.

The Danab forces have been a key component of Somalia’s security strategy, receiving extensive training and equipment from the US military since their inception in 2014.

This partnership aimed to bolster Somalia’s capacity to take on the primary responsibility for its own security.

The unit’s effectiveness has been widely acknowledged, so the abrupt withdrawal of funding is a significant setback for Somalia’s counterterrorism efforts.

Al-Shabaab, which has waged a relentless insurgency for over a decade, continues to pose a significant threat to regional stability, and the Danab forces have been instrumental in pushing back against their advances.

Impact on aid and development

According to the finance minister, the funding cuts also extend to USAID programs, impacting crucial aid and development initiatives. This reduction has exacerbated Somalia’s existing economic challenges, which are compounded by recurring droughts, floods, and food insecurity.

“The reduction in funding has also affected aid and development programs, further exacerbating the country’s economic challenges,” Egeh added.

According to the Ministry of Finance assessments, Somalia has lost approximately $1.5 billion in annual aid, increasing the financial pressure on the government.

“We must work together to accelerate tax reforms, manage foreign aid efficiently, and leverage available resources,” Egeh urged. “The reduction in funding is not limited to the United States alone, but is a global trend.”

Somalia’s reliance on international aid is substantial, reflecting decades of state fragility and conflict. USAID programs have provided critical support in sectors such as health, education, and agriculture, addressing the basic needs of a population struggling with poverty and displacement.

The reduction in these programs will likely significantly impact vulnerable communities.

Economic crisis looming

The finance minister warned that Somalia is on the brink of a severe economic crisis and called on the government to prepare for the potential impact.

“Some of the reasons for the reduction in aid are related to changes in political priorities in Washington,” Egeh stated. He also indicated that funding declines predated the current US administration.

The U.S. has historically been a significant provider of military and humanitarian assistance to Somalia, given the country’s ongoing conflict with Al-Shabaab and its vulnerability to recurring droughts and food crises.

The reduction in aid has had dire humanitarian consequences. The World Food Programme (WFP) warned that an additional one million people in Somalia could face crisis levels of hunger in the coming months due to an anticipated drought and existing funding cuts.

This would increase the number of people experiencing acute food insecurity from 3.4 million to 4.4 million.

The US engagement in Somalia is part of a broader international effort to stabilize the Horn of Africa and counterterrorism, a region of strategic importance due to its proximity to vital shipping lanes and its vulnerability to extremist influence.

Somalia’s ongoing reliance on external support highlights the country’s fiscal vulnerability. The nation’s efforts to rebuild its institutions and establish a functioning economy are hampered by ongoing security threats and limited domestic revenue.

The reduction in US funding adds to the existing challenges, raising concerns about the long-term sustainability of Somalia’s progress.

Somalia now faces the challenge of finding alternative sources of funding to sustain its military operations and development programs amid mounting financial pressures.

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