Somalia’s Institutions get a Boost to Help Bring the Country Closer to Debt Relief

  • Somalia has received a $75 million grant to support its efforts in building strong institutions and qualifying for debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.
  • The grant is part of a larger reform program aimed at attracting investments, achieving inclusive economic growth, and creating jobs.
  • The country has implemented new laws in sectors like fisheries and electricity to promote economic growth and has also enacted laws for digital identification and data protection to increase access to finance.
  • The grant will also support the harmonization of customs regimes, strengthen external audits, and improve governance arrangements.
  • Somalia has signed debt relief agreements with major creditors and is working towards agreements with other creditors.
  • The goal is to attain debt relief and eliminate the burden of loans contracted during the pre-civil war era.
  • The resources from the grant will help the government meet essential public expenditures and build resilience against future shocks.

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