The Puntland government and business leaders in Bosaso have reached an agreement ending a nearly three-week tax dispute that forced the closure of Bosaso Port and much of the city’s commercial activity, bringing one of the region’s most significant economic standoffs to an end.
Both sides announced on Saturday that they had made concessions to resolve the dispute, paving the way for the immediate reopening of Bosaso Port and the city’s markets.
The agreement follows weeks of negotiations after traders suspended operations in protest against what they described as excessive taxes and port charges imposed by the regional administration.
As part of the deal, the Puntland government said it had significantly reduced the port handling fee managed by the UAE-based operator DP World.
The charge, which had previously been set at $8 per metric ton (MT), has been reduced to $1 per metric ton. Authorities also announced that taxes on several essential commodities would be lowered in an effort to ease pressure on businesses and consumers.
Despite the breakthrough, uncertainty remains over whether traders will lower the prices of goods that surged during the prolonged shutdown.
The closure disrupted the supply of imported commodities, contributing to a sharp rise in the cost of living across Puntland, where Bosaso serves as the region’s primary commercial hub and gateway for imports through the Gulf of Aden.
The Puntland Civil Society Organizations Network (PUNSAA) welcomed the agreement, describing it as an important step toward restoring economic stability.
The organization urged both the government and the business community to ensure that the benefits of the agreement are passed on to consumers rather than maintaining inflated prices.
In a statement, PUNSAA called on both parties to prioritize support for vulnerable communities that have been hardest hit by the economic disruption.
It also emphasized the need to keep the prices of essential goods affordable, particularly as recurring drought conditions continue to place additional strain on rural households and low-income families.
The dispute began after traders accused the Puntland government of introducing additional taxes and port charges that they argued were unsustainable for businesses.
They warned that the increased costs would inevitably be passed on to consumers, worsening the already rising cost of living.
The reopening of Bosaso Port is expected to restore the flow of imports and commercial activity, although the full economic impact of the nearly three-week shutdown may take time to reverse.
PUNSAA also urged the government and the private sector to strengthen cooperation and mutual trust, saying continued collaboration is essential for economic growth, stable public services, and maintaining confidence in Puntland’s markets.