Somalia’s Finance Chief Credits Saudi Assistance in Clearing $4.5 Billion Debt, Reports to Asharq Al-Awsat

In a poignant announcement, Somalia’s Minister of Finance, Bihi Iman Egeh, heralded a defining achievement: the nation has successfully cleared approximately $4.5 billion in debt. This monumental accomplishment, attained through the Heavily Indebted Poor Countries (HIPC) Initiative spearheaded by the International Monetary Fund (IMF), perhaps turns a promising page in Somalia’s ongoing narrative. Who would have thought that such reformative strides could bring a country closer to financial stability?

Egeh spoke passionately with Asharq Al-Awsat, underscoring Mogadishu’s regard for Riyadh as a pivotal partner in the quest for economic development and security enhancement. “The journey was arduous,” Egeh confessed, noting Saudi Arabia’s instrumental role in unburdening Somalia of its debt. The significance of such alliances cannot be overstated.

Looking towards the horizon, Egeh articulated Somalia’s intent to court investment, especially from Saudi Arabia, in sectors like livestock, renewable energy, and the rich blue economy. Natural resources such as gold and minerals glimmer with untapped potential, promising opportunities aplenty for astute investors.

Come December 2023, Somalia attained the completion point of the HIPC Initiative—a feat many thought too ambitious just ten years ago. Extensive reforms, including public financial management overhauls and comprehensive economic policies, have facilitated a thorough restructuring of debts, notably with the Paris Club and other global creditors.

Saudi Arabia’s Strategic Role

Arab financial bodies, including the Saudi Fund for Development, were integral to the debt discussions within the Paris Club framework. Egeh lauded Saudi Arabia’s unwavering support and strategic facilitation during these restructuring dialogues. “It takes more than a single handshake to build a lasting bond,” one might reflect.

Cooperation between Mogadishu and Riyadh extends well beyond fiscal matters. Notably, Somali safety officials currently engage in dialogue within the kingdom regarding counter-terrorism. Surely, this strategic partnership has layers deeper than mere economics: it’s about shared stability.

Broadening this alliance, Somalia’s National Intelligence and Security Agency (NISA) maintains a mission in Jeddah, focusing on military and intelligence collaborations. Could extending such strategic partnerships provide a bulwark against regional threats? Egeh certainly believes so, viewing the cross-border menace posed by extremist groups as a collective peril.

Inviting Investment and Fueling Growth

Having successfully navigated debt relief, Somalia now turns its focus squarely on economic expansion. Preparations are underway for a new IMF program, designed to cement the progress achieved through the recent financial liberation. Egeh stressed the tangible moves Mogadishu has made to enhance the investment landscape, offering tantalizing incentives.

Saudi Arabia is intrinsic to this strategic vision. Given the Red Sea’s historical and geographic significance, the kingdom emerges as a key market for Somali ventures.

Sectorial Opportunities

With the distinction of Africa’s longest mainland coastline, Somalia is a veritable treasure trove in the realms of blue economy and fisheries. Agriculture and livestock, traditional pillars of Somali commerce, beckon with potential for substantial growth.

As Somalia’s largest trading ally, Saudi Arabia imports millions of livestock annually. Modernizing this trade, however, requires investment in agriculture and infrastructure. Is it time for investors to shift their gaze to the Horn of Africa?

In the realm of renewable energy, the transformative potential is striking. Imagine harnessing this power to revolutionize industries like cold-chain logistics. Ethiopia’s untapped mineral wealth—including gold, prized by prospectors the world over—adds yet another layer of appeal for discerning investors.

Addressing Security Concerns

While Somalia’s security narrative has been tumultuous, Egeh recounted recent strides in fostering economic resilience over the past two decades. A focused military campaign against Al-Shabaab has liberated upwards of 80 villages, creating space for economic rejuvenation.

Combatting extremism, Egeh detailed, involves a tri-fold strategy: countering extremist ideologies through community education, disrupting financial networks, and direct engagement to dismantle militants’ infrastructure. Indeed, it’s a complex mosaic of security and persistence.

The fight against terrorist financing boasts successes, with thousands of suspicious accounts closed. Previously, Al-Shabaab operated with alarming financial freedom, traversing African and Middle Eastern borders with ease. Yet, recent interventions have curtailed their economic lifelines, stalling their regional influence.

Moreover, in contending with ISIS-affiliated militants in northeastern regions, Somali forces have achieved tangible territorial gains, dismantling insurgent strongholds.

Potential Extremist Alignments

Could there be a shadowy link between Al-Shabaab and Yemen’s Houthi militias? While no direct connections have been identified, vigilance remains a steadfast strategy. Prevention, after all, is preferable to the repercussions of unforeseen alliances.

Ultimately, Egeh underscored the broader mission: uprooting extremism to secure peace and prosperity across the region. For Somalia and its partners, anything less than complete eradication of the terrorist threat is simply unacceptable.

Edited By Ali Musa, Axadle Times international–Monitoring