Somali government has warned it will revoke licenses and close down businesses or companies which transfer money or make any payments to the Al-Shabaab terrorist group.

The Ministry of Trade and Commerce said today it will take action against businesses that aid Al-Shabaab activities by providing them with funds.

The Ministry added that it will confiscate the property of companies known to be owned or have representatives from Al-Shabaab.

The directive follows President Hassan Sheikh Mohamud’s announcement in July that the government will also target Al-Shabaab financing to cut off its lifeline. Al-Shabaab finances its activities mostly through forced ‘taxation’ of traders and transporters.

A report by Mogadishu-based security think tank, Hiraal Institute in 2020 indicated that Al-Shabaab collects up to $11 million per month with more than half of this coming from the capital Mogadishu.

The think tank also said in a recent report that the militant group spent $24 million on weapons acquisition in 2021.

The directive comes a day after Somalia marked six years since the October 17, 2017 truck bombing that killed about 600 people and maimed over 100 others in Mogadishu’s Zobe junction.