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For Somalia

Two containers of the same thing, landed at two different costs

Berbera, Bosaso and Mogadishu are administered separately, so the port is a cost dimension rather than a shipping detail. Stock, procurement and landed cost that can carry that — priced in dollars, which is what your books are actually in.

The subject
Where a cost comes from. Berbera, Bosaso and Mogadishu are administered separately, so what a consignment cost to bring ashore is a function of which port cleared it — not of the supplier, the incoterm or the week.
The limit
We hold what a consignment cost, not what it should have cost. No connection to any customs administration, no duty derived for you, no tariff schedule held for any of the three.
Whose rules
There is more than one administration collecting revenue here and we are not going to flatten that into one sentence. What you owe, where and to whom is your adviser's and your forwarder's — they deal with it per consignment, and they will know.
Interface language
English only. Somali and Arabic are the official languages and English is widely used in business, which is not the same thing — test it with whoever will key transactions daily, not with whoever signs.
Support hours
Mogadishu and Nairobi are on the same clock, so the working day overlaps completely rather than partially. No office here and no implementation partner — we are not going to imply either.

The argument, in four lines

One supplier, one price, one day — and two different costs

Almost every inventory system assumes the cost of getting goods into a country is a property of the country: duty is national, the rate is published, and any difference between two consignments is freight or timing or the exchange rate. Here that assumption does not fail at the border. It fails inside it — because what a consignment cost to bring ashore depends on which port cleared it.

Illustrative figures, per unit, for one product bought at 100 a unit. Your own two numbers are the ones that matter — the last section on this page is how to get them.

Per unit Route one Route two

The supplier invoice

100.00

100.00

Same supplier, same price, same day. Nothing about the commercial transaction differs, which is what makes the rest of this hard to see.

Everything paid to bring it ashore

18.00

26.00

One figure on purpose. We publish no duty rate for any administration and hold no tariff schedule — this is the total your forwarder gives you per consignment, which is the number you already have.

What the consignment actually cost you

118.00

126.00

Two true costs. Both are correct. Neither is an error to be reconciled away.

What a system holding one cost per item keeps

An average of two structural costs, which describes neither of them. It is always plausible, it always balances, and it is the figure every margin you report is measured against.

122.00

Price it at a 20% margin and here is what you are really making

A 20% target against 122 sets your price at 146.40. On the stock that came through the cheaper route you are making 24%. On the other you are making 16%. You believe you are making 20% on both, and no report you run will contradict you — because the report is built from the same 122.

The variance has nowhere to live

A quarter with more volume through the dearer route produces a margin miss with no visible cause. Nothing in purchasing changed and nothing in pricing changed, so the variance report has no column to put it in.

Separate item codes spread

Two codes for one physical product breaks stock enquiry, reorder points and every customer-facing document, and it pushes the burden onto whoever picks. The cost dimension has been forced into the identity of the goods.

Booking it to overheads destroys the most

The easiest answer and the worst one: the cost leaves the goods entirely, gross margin is uniformly overstated, and the figure can no longer be attributed to a consignment, a route or a period.

The general form of this is worth more than the Somali case: the mistake is not getting a rate wrong, it is assuming what a cost varies by. Most systems assume supplier, date and currency, because in most markets that is right. The full argument, with the arithmetic is written up separately.

What this costs today

Four consequences, and not one of them announces itself

Each is what an averaged cost or a missing state looks like a year later. They are slow rather than dramatic, which is exactly why they survive — nothing here fails on the day it happens.

One item, two true costs, one average

The same product arrives through two ports at two different charges. A system that holds one cost per item averages them, and from then on every margin is measured against a number that describes neither consignment. The error is invisible because the average is always plausible.

Costs that arrive after the goods

Clearing, handling, storage and inland transport turn up on separate invoices weeks after receipt, with no consignment reference. If the receipt is closed by then they become overheads, and the landed cost is a story rather than a figure.

A year that happens in one season

Most of the export throughput moves in a single window. Stock that is committed, held under quarantine or already at the port is the same word — "stock" — in most systems, and in that window the difference between the three is the whole business.

Money that leaves on a phone

Wages, advances and supplier payments go out through mobile wallets in dollars, and the record of them is a telco statement in one place and a spreadsheet in another. Nothing ties a disbursement to the person, the grant or the consignment that caused it.

Operations in Somalia

The port is not a shipping detail. It is a column in your cost.

Every other market page in this corpus argues landed cost against one national duty schedule and a moving exchange rate. Somalia is the market where that assumption breaks inside the country. Berbera, Bosaso and Mogadishu are administered separately, so what a consignment cost to bring ashore is a function of which one cleared it — and if your system holds one cost per item and one duty assumption per country, it cannot tell you which of your two landing costs you are selling against. The rest of this section is what follows from that, plus the two other things about running an operation here that nothing in our corpus already covers.

Landed cost

The consignment carries where it came ashore

Freight, duty, clearing, handling and storage attach to the specific consignment as their invoices arrive — not to the item in general — and the unit cost recalculates each time. Two receipts of one product, cleared at two ports, keep two true costs instead of averaging into a number that describes neither.

Inventory

Quarantine is a stock state, not a spreadsheet

Stock can sit in a holding location and be counted as yours without being available to ship, which is exactly the shape of an export consignment waiting out its veterinary hold. Held, released and moved are states with dates and a person against them, so the question "what is actually clear to load" has an answer.

Stock transfers

What is between two ports is a position, not a gap

Transfers between a yard, a holding station and a port are confirmed on arrival, so goods in motion are a state rather than an absence in both counts. In a country where the two ends of a journey may answer to different administrations, the in-transit position is the only place the truth lives.

Procurement

A season you cannot re-run needs approvals that refuse

Roughly seventy per cent of small-ruminant export moves in the Hajj window. A purchase that should have been stopped in a normal month is a missed shipment in that one, so requisition, threshold approval, quotation comparison and matching before payment are worth more here than the calendar suggests — thresholds refuse rather than warn.

HR & disbursement

Your people are paid into a wallet, not a bank account

Mobile money penetration is around 73%, most of it dollar-denominated, more than half the country is paid that way, and most of those never cash out. So the employee record has to hold a wallet as the destination and the register has to reconcile against a telco statement — and the honest half of this is that we hold the record and the register, not a connection to the wallet.

Offline operations

Capture at the yard and the station, then sync

Stock transfers, inventory check-out and check-in, and asset movements recorded on mobile without a signal and synced on return. A holding station is not where the network is, and a count that waits for connectivity is a count taken from memory.

One boundary belongs with the first card rather than in a footnote, because it is the card a reader will over-read: we hold what a consignment cost, not what it should have cost. We have no connection to any customs administration, we do not compute a duty for you, and we will not tell you which port to use. What we do is stop the two costs collapsing into one average that hides both.

Scope, in three parts rather than two

What runs today, what we would build, and the two answers we will not give you

Three columns, because “no” means two different things. The middle column is work with a price on it. The right-hand column is work we would decline from a paying customer — and two of its items are places where a confident answer from any vendor should worry you rather than reassure you: whose rules apply, and whether your counterparties have been screened.

Scope in Somalia, stated before the demo

Running in the product today

  • Landed cost held per consignment and open after receipt, so a clearing invoice arriving three weeks later reaches the goods it belongs to and the unit cost moves.
  • Holding locations and a held stock state, so goods can be yours, counted, and not available to ship, with the release recorded against a person and a date.
  • Multi-site stock with transfers confirmed on arrival, and the in-transit position visible from both ends.
  • Foreign-currency purchases at the rate actually applied, with both amounts kept on the transaction — which matters here because the books are in dollars and the tax row is not.
  • Procurement thresholds that refuse, with quotation comparison, purchase orders and three-way matching before payment.
  • Supplier records with prequalification and expiry, so what was proved about a counterparty, and when it lapses, is a field rather than a memory.
  • Offline capture on mobile for four field operations, synced on return. Counting, receiving a purchase order and job time are not among the four.

On the roadmap — and commissionable now

  • No mobile-money connection, to any Somali provider. EVC Plus, Zaad, Sahal and e-Dahab are the rails your organisation actually runs on and we are not connected to any of them. Our one collection integration is M-Pesa and it is Kenya-only. You would key the disbursement and reconcile against the telco statement, which is real work we are not doing for you.
  • No Somali statutory payroll. No income tax bands, no statutory contributions, no filing. We hold employee records, attendance, leave and the allocation of labour cost to a project or grant. The maintained statutory engine covers Kenya only — which is also the evidence a second one is possible.
  • No port or customs administration integration, and no duty calculation. We record what you were charged, per consignment, with the paperwork attached. We do not derive it, look it up, or hold a tariff schedule for any of the three administrations.
  • No Somali or Arabic interface. English only. Somali and Arabic are the official languages and English is widely used in business — test that with the person who will key transactions every day, not with the person who signs the contract.

Not ours, by choice — and this column is the reason to believe the other two

  • We will not tell you what any authority's position is. There is more than one administration collecting revenue in Somalia and we are not going to flatten that into a single sentence so that a page reads more cleanly. What your obligation is, where it is owed and to whom, is a question for your own adviser and your own forwarder — who will know, because they deal with it per consignment. A vendor who answers that question confidently in a sales meeting has told you something about how they sell.
  • We will not file anywhere whose rules we do not maintain. Kenya is the single exception and we earned it by building and maintaining it. If a vendor claims filing here, ask which of their customers has filed through their software, by name.
  • Nothing to do with clearance, and no version of us will. No declarations, no clearance integration, no claim to shorten a journey or reduce a charge. We hold the evidence against the consignment; the journey is not ours to speed up.
  • We will not screen your counterparties for you. Grant funding and correspondent banking here come with real screening obligations, and we hold the supplier record, what was proved about them and when it expires. We are not a sanctions or beneficial-ownership screening service, we do not check any list, and treating a prequalification field as though we had checked one would be the single most dangerous misreading of this page.
  • We will not claim a local presence we do not have. No office in Somalia and no implementation partner. Support is remote from Nairobi in English, and the working day overlaps almost entirely — Mogadishu is on the same clock as Nairobi. Ask us what happens when the person who implemented your system leaves.

The middle column is work with a price on it, not a ceiling. A mobile-money disbursement connection is the clearest example: Kenya's M-Pesa collection and its maintained statutory payroll engine both exist because clients needed them and commissioned them, and neither arrived from a roadmap. If an EVC Plus or Zaad connection, a Somali payroll engine or a per-administration cost dimension is what stands between you and a decision, say which one and we will come back with a written specification, a timeline and a price before you commit to anything. There is no date on this page, because nobody has paid for one.

Read the last column as different in kind from the middle one. The middle is unbuilt; the last is where we stop deliberately, and two of its items — the authority's position and counterparty screening — are places where a confident answer from any vendor should worry you rather than reassure you.

How this starts

Three moves, and the first two need nothing from us

01

Pick one product you have imported through two ports

Put the two landed costs side by side — everything you paid to get each consignment onto your own floor, not the supplier invoice. If you cannot produce both numbers, that is the finding, and it cost you nothing to discover.

02

Ask what price you have been selling it at

One price, against two costs. Whichever consignment was the more expensive one has been quietly funding the margin you thought you were making on the other. This is your arithmetic, not ours, and it is worth more than a demonstration.

03

Then decide what you are buying

Not a clearance route and not a tax position. The ability to keep two costs true, hold stock that is not yet shippable as its own state, and answer a funder or an auditor from a report instead of from somebody's recollection.

Read before you shortlist

Guides for this market

Pricing, Cost & ROI 12 min

The Same Goods, Landed Twice, at Two Different Costs

Duty is assumed to be a property of the country. In Somalia it is a property of the port, so two containers of one product can cost different amounts to bring ashore — and a system holding one cost per item has already averaged the difference away.

Read
Inventory Insights 10 min

Stock That Is Yours, Counted, and Cannot Ship

On hand and available are two different numbers and most systems hold only one. Where goods sit out a mandatory hold before they can move — and where one season carries most of the year — that gap decides whether the vessel sails full.

Read
Implementation & Rollout 13 min

Buying Operations Software in Somalia: A Straight Guide

The question buyers normally lead with — are you compliant here — is the one that tells you least in this market. Four that work better, including two where a confident vendor answer should reduce your confidence rather than increase it.

Read
HR & Payroll 11 min

Your Payroll Rail Is a Phone Number, Not a Bank Account

A wrong bank account bounces. A wrong phone number pays someone. Where wages leave for a wallet, in dollars, and are never cashed out, four ordinary payroll assumptions break — and the last moment to catch an error moves to before the transfer.

Read
Projects & Job Costing 11 min

Twelve Months to Spend It, Ten Weeks to Do It

A grant carries two clocks. The money clock runs on somebody else's fiscal year and the delivery clock runs on the rain, and in East Africa they are not in phase — which is why the same programme reads as failing in one quarter and exemplary in the next while doing exactly what it planned.

Read
Implementation & Rollout 13 min

Buying Operations Software in South Sudan: A Straight Guide

One question separates vendors here faster than any feature list: which instrument does this country levy? We had it wrong in our own reference data until August 2026, which is exactly why the question works.

Read

Asked here, and answered without the hedge

What one country with three port administrations does to a system

Can you hold a different duty rate per port?

Not as a rate, and the distinction matters more than it sounds. There is no per-port tariff table in the product and we are not going to derive a charge for you — we hold no schedule for any of the three administrations and we have no connection to any of them. What we hold is what you were actually charged, per consignment, with the clearing paperwork attached to it, carried into the unit cost of those specific goods. In practice that is the number you need: your forwarder already tells you the charge per consignment, and the thing your current system is probably getting wrong is not the rate but the averaging of two real costs into one. A per-administration cost dimension — where the port becomes a reportable attribute you can compare margins across — is a defined build rather than a live feature. It is on the roadmap, it is commissionable now, and if it is what your decision turns on we will scope it with a written specification, a timeline and a price. We will not print a date here.

Is the sales tax really 5%? We have seen 10% quoted.

It is 5%, it has been since 18 August 2024, and the 10% you have seen quoted may well have been ours. Our own reference data carried 10.00 for years and we corrected it to 5.00 in August 2026 — the first time this corpus has found one of its own rates wrong in the overcharging direction. It survived because the row was unreachable by the code that resolves a rate, so nobody ever saw a figure derived from it and nothing contradicted it. We would rather tell you that than have you find out that a vendor's country list is not evidence. Confirm the current figure with your own adviser before you rely on it, here or anywhere else, and note the mechanism separately: this is a sales tax with no input credit, so tax paid on a purchase is part of what the purchase cost rather than something you reclaim. The argument for what that does to a budget line is on our South Sudan page, which levies the same kind of instrument, and it is the same argument here.

Which revenue authority do you file with?

None, and we are not going to pretend the question has one answer. There is more than one administration collecting revenue in Somalia, the arrangements between them are not ours to characterise, and what your organisation owes, where, and to whom is a question for your own adviser and your own forwarder — who deal with it per consignment and per port. This is a boundary rather than a backlog, and it will not change with a commissioned build: we do not file in any market whose rules we do not maintain, Kenya being the single exception and one we earned by maintaining it. That protects you specifically here, because a vendor confident enough to describe the national position in a sales meeting is describing a country that is simpler than the one you operate in. Ask them which of their customers has filed through their software, by name.

Do you connect to EVC Plus, Zaad or e-Dahab?

No — not to any of them, and this is the absence most likely to matter to you, so it is the fourth question rather than the last. Mobile money is around 73% penetration here, the services are dollar-denominated, more than half the country is paid into a wallet and most never cash out. So the rail your money actually moves on is one we have no integration with. What runs today: the employee or supplier record holds the wallet as a destination, the disbursement is keyed and coded to a project, grant or consignment, and the register gives you one place to reconcile against the telco statement. What you do by hand is the initiation and the reconciliation. This is on the roadmap and commissionable now, and it is the item we would expect to be asked for first. The precedent is not hypothetical: M-Pesa collection exists in this product because Kenyan clients needed it and commissioned it. Tell us which provider and which direction — collection, disbursement or both — and we will come back with a written specification, a timeline and a price before you commit to anything.

Our books are in dollars but your tax row says Somali Shilling. Which is it?

Your books are in dollars and the product will run that way. The currency on our tax row exists so that provisioning has something to resolve; it is not a claim about what you keep your accounts in, and we know the shilling is not the unit of account for anything substantial — worn notes were being refused outright as recently as this year. What the product does is hold a transaction in the currency it happened in, with the rate actually applied kept on the record, and it never silently converts two currencies and adds them together in a report. That last point is a design rule rather than a feature: a single total spanning currencies either names the currency it is in or does not exist.

Do you screen suppliers against sanctions or ownership lists?

No, and you should read this as the most important no on the page. Grant funding and correspondent banking here bring real screening obligations, and it would be easy to look at a prequalification field and assume something has been checked. Nothing has. We hold the supplier record, the documents, what was proved about a counterparty and by whom, and the date any of it expires — so the evidence is retrievable and its staleness is visible. We check no list, we consult no register, and we are not a screening service. This is a boundary rather than a backlog and it will not change with a commissioned build, because being wrong about it once is worse for you than not having it at all: the failure mode of a half-built screening feature is a user who stops looking. Buy screening from someone whose business it is, and use us for the evidence trail underneath it.

Nobody supports us from here. Why would you be different?

We would not claim to be, and the honest version is worth more than a promise. There is no office in Somalia, no implementation partner and no plan to imply either. What is genuinely in your favour is smaller than a presence and more useful than most vendors' answer: Mogadishu and Nairobi are on the same clock, so the working day overlaps completely rather than partially — unlike a European or Gulf vendor selling in from two or three hours away — and support is in English, which is widely used in business here even though it is not an official language. Test that second point with the person who will key transactions every day rather than with the person signing the contract; if their working language is Somali or Arabic, we are the wrong choice and we would rather you established that in week one. The question that actually separates vendors is what happens when the person who implemented your system leaves, and it is worth asking us as bluntly as you ask anybody else.

Bring two landed costs for one product

The same item, cleared through two different ports, everything it cost to get each consignment onto your floor. If your system can only give you one figure, we can show you what the other one was doing to your margin.