IMF Greenlights $10 Million Funding Boost for Somalia, Forecasts 3.7% Economic Expansion by 2024

In Mogadishu, the International Monetary Fund (IMF) has approved a $10 million disbursement to support Somalia’s economic reforms. Somalia is projected to have a real GDP growth of 3.7% in 2024, up from 2.8% in 2023, driven by agriculture and increased remittances. The IMF praised Somalia’s progress in fiscal sustainability, revenue strengthening, and governance improvement.

Somalia reached the Completion Point under the Heavily Indebted Poor Countries (HIPC) initiative in December 2023, resulting in a significant reduction of external debt. Deputy Managing Director, Ms. Antoinette Sayeh, commended Somalia’s reform momentum and emphasized the importance of continued support from development partners.

Sayeh highlighted the importance of revenue performance and revenue-enhancing reforms, such as customs modernization and the new income tax law. Strengthening public financial management, including payroll integration and expenditure controls, remains a priority for Somalia.

The IMF also praised Somalia’s efforts to strengthen central bank institutional capacity and promote financial deepening and inclusion. Despite facing challenges such as security threats and climate volatility, Somalia remains committed to reform, as seen through international support and the $4.5 billion debt relief package.

Finance Minister Bihi Iman Egeh emphasized the significance of ongoing reforms and international partnerships for Somalia’s economic stability at the IMF-World Bank spring conference. Somalia’s entry into the East African Community economic bloc is expected to drive further reforms and trade integration.