In a recent move, the IMF’s Executive Board approved a $10 million disbursement to Somalia for budget support under the ECF program, bringing the total amount received to $50 million.
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Following the completion of the first review of the ECF arrangement for Somalia, Ms. Antoinette Sayeh, the Deputy Managing Director and Acting Chair, praised the Somali authorities for their strong commitment to reform after meeting the requirements of the HIPC Initiative in December 2023.
Ms. Sayeh highlighted Somalia’s impressive performance under the ECF program and stressed the importance of continued ownership of reform initiatives by the authorities to promote economic growth and reduce poverty. Strong revenue collection and implementation of revenue-enhancing measures were also noted as positive steps towards supporting priority spending.
Efforts to improve public financial management, strengthen the central bank, and promote financial inclusion and reform were commended by Ms. Sayeh, who underscored the importance of capacity building in the petroleum sector and addressing food insecurity for Somalia’s sustainable development.
The ECF program, initially approved in December 2023, aligns with Somalia’s national development plan by focusing on enhancing economic institutions, ensuring macroeconomic stability, and supporting long-term economic growth through improved governance and financial management.
Overall, the ongoing support from the IMF and other development partners will play a crucial role in helping Somalia implement its reform agenda and achieve its long-term vision for economic stability and growth.
