U.S. Reports Al-Shabab Earns $150 Million a Year from Extortion in Somalia

The al-Shabab militant group earns more than $150 million each year through extortion and forced taxation in Somalia. The U.S. State Department disclosed this financial estimate in a recent report. This funding supports one of the world's most active insurgencies. Al-Shabab, which has ties to al Qaeda, controls large parts of southern and central Somalia. The State Department report also notes that a branch of the Islamic State operates in the country. The persistent threat from these groups creates widespread insecurity for civilians. Extortion networks target both businesses and civilians. This system of forced payments, known as "taxation," is a primary source of revenue for the militants' operations.