(31/07/23) MOGADISHU – Somalia’s progress towards building strong institutions received a boost today with the announcement of a $75 million grant from the World Bank. The grant is the second in a series of two grants that will help Somalia qualify for full and irrevocable debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.
Amidst a challenging backdrop of frequent climatic hazards and widespread fragility, the Somali government has embarked on an ambitious reform program. The program aims to strengthen institutions, attract investments, and foster inclusive economic growth and job creation. This comprehensive initiative is closely aligned with the objectives laid out in the ninth National Development Plan, which outlines numerous priority areas to propel the country forward. Several of these priority areas are being supported by the Development Policy Financing (DPF) to bolster Somalia’s progress towards a more stable and prosperous future.
“This DPF supports the government’s aspirations to build the foundations of a modern economy with strengthened institutions. It also signals the significant progress Somalia has made in terms of institution-building and economic development, paving the way for a more stable and sustainable future,” said Kristina Svensson, World Bank Country Manager for Somalia.”
Somalia has made significant progress in recent years in implementing economic reforms. The country has also signed debt relief agreements with major creditors, furthering its path to stability and development.
