African Development Bank (AfDB) has given the donor-sponsored plan by Somalia to settle its arrears a massive approval.
With the approval, Somalia has moved a step closer to receiving incredible infrastructure financing.
The decision by AfDB on Monday has paved the way for Somalia to clear arrears of up to $122.55 million with the help of donors.
Moreover, AfDB is now ready to proceed with negotiations with Somalia on project funding.
Though that amount is small bearing in mind that Somalia’s debts stand at $5.3 billion, it is a huge step forward to the Horn of African nation.
First, AfDB had stopped all forms of engagement with Somalia for the last 30 years. It took that decision because of the chaos and sanctions the nation has suffered for most of its existence.
The AfDB approval is yet another feather in the cap for Somalia. Recently, the Brettons Woods institutions determined that Somalia had satisfied the eligibility requirements for debt relief.
