Dahabshiil, a leading international financial services company, has removed all references to ‘Somaliland’ from its platforms in compliance with a directive from the Somali government. The move, aimed at complying with national regulations, has triggered widespread resentment in Somaliland, where many residents view it as a betrayal of their autonomy.
Dahabshiil’s decision to comply with the Somali government comes in the wake of similar pressures international companies face. Earlier, Somalia’s Civil Aviation Authority (SCAA) issued a directive to airlines like Flydubai and Ethiopian Airlines, instructing them to list Hargeisa, Somaliland’s capital, as part of Somalia. Ethiopian Airlines initially resisted by using only airport codes but eventually complied to avoid suspension of its operations in Somalia. The directive is part of Somalia’s effort to reinforce its territorial claims over Somaliland, which declared independence in 1991 but is not internationally recognized.
“You’ve chosen the side of our enemies. Somaliland made you what you are, and you’ve betrayed us,” wrote one user, echoing the growing discontent in the region. Somaliland’s government has also condemned the move, warning businesses against complying with Somali directives.
Somaliland’s relative stability compared to the southern half of Somalia made it attractive to international businesses and investors. The region operates its own government, holds regular elections, and issues passports and currency, all of which bolster its claim to independence.
However, Somalia’s recent push to control how international companies reference Somaliland highlights its determination to challenge any move that implicitly recognizes Somaliland as a separate entity. The dispute has been exacerbated by a naval base agreement between Ethiopia and Somaliland, further straining relations between Somalia and its regional neighbours.
Dahabshiil’s compliance follows a trend among international companies operating in the Horn of Africa. Flydubai was the first to comply with the Somali government’s directive, listing Hargeisa as part of “Somalia” to avoid disruptions. Ethiopian Airlines initially took a more cautious approach, using only airport codes to sidestep the issue, but ultimately adhered to the directive after Somali authorities refused to grant an extension for review.
Dahabshiil, which started in Somaliland and expanded globally, explained that it had no choice but to comply with international regulations. “Dahabshiil is a global company operating in more than 120 countries. We’re international, like flydubai, Ethiopian Airlines, and Turkish Airlines. We all operate under international rules. Dahabshiil started in Burao, Somaliland and went global from there. We’ll continue to serve all,” the company said in a statement.