The Islamic State in Somalia, an affiliate of the global terrorist organization, has been gaining influence in the Horn of Africa through its ability to raise funds, according to the International Crisis Group (ICG). Although overshadowed by the more prominent al Shabaab, linked to al Qaeda, IS-Somalia plays a significant role in Islamic State’s global operations, particularly by generating revenue through extortion. The group has reportedly sent funds to other Islamic State branches across Africa and even as far as Afghanistan.

IS-Somalia, which is based in the Bari region of Puntland, raises money through extortion in Bosasso’s port city and by exporting small quantities of gold. The U.S. estimates that the group has accumulated up to $6 million since 2022, despite its relatively small size of about 500 fighters. Many of these militants come from foreign countries like Kenya, Tanzania, Ethiopia, and Yemen. IS-Somalia has carried out fewer attacks in recent years, with less than a dozen raids since 2023, compared to about 60 in 2019.

Led by Abdulkadir Mumin, a former al Shabaab leader, the group has survived multiple efforts to defeat it. Despite its limited territorial control in the rugged Cal Miskaat mountains, IS-Somalia has remained resilient, partly due to the challenging terrain and Somalia’s internal political divisions. Al Shabaab, which controls large parts of central and southern Somalia, has also struggled to eliminate its smaller rival.

Efforts to eradicate IS-Somalia have been hampered by disagreements between Somalia’s federal government and the semi-autonomous Puntland authorities. The ICG recommends that both sides put aside their differences, work together to counter the group, and encourage defections while addressing the concerns of the local communities that host IS-Somalia.