section_path: Sources of income and arms/Internal revenue/Trade and smuggling
section_name: Trade and smuggling
paragraph_text: Trade and smuggling
  
  As al-Shabaab expanded its territorial control, it was able to augment its internal funding through illicit markets and local populations. The smuggling of charcoal has been an important source of income for the group since it first gained control of Somali port cities, especially Kismayo. Calculating that al-Shabaab was earning between $15 million and $50 million annually from illegal trade, the UN banned Somali charcoal imports. The group also profits from involvement in – or taxation of – the smuggling and sale of ivory, sugar, and, reportedly, heroin; and it has been implicated in illegal mining and minerals exports in East Africa. There is some evidence that al-Shabaab has profited from piracy. In 2011, the head of the UN's counter-piracy division, Colonel John Steed, warned that there was circumstantial evidence that al-Shabaab increasingly sought to cooperate with pirate gangs and other criminal organizations. Further reports suggested that al-Shabaab members had extorted pirates, demanding protection money equivalent to 20% of the pirates' ransom proceeds, but did not provide evidence that al-Shabaab was itself involved in piracy.