Mogadishu, Somalia — The Arab League has agreed to cancel three-quarters of Somalia’s $18 million debt, a burden that had accumulated over nearly four decades, Somali officials confirmed this week.
Ambassador Ali Abdi Aware, Somalia’s envoy to Egypt and the Arab League, described the decision as a “historic diplomatic victory” that paves the way for Mogadishu to re-engage fully with regional development and economic programmes.
The debt relief, amounting to roughly $13.5 million, is seen as a major step in Somalia’s broader recovery efforts following years of conflict and financial isolation. According to Somali officials, the move will strengthen the country’s ability to participate in Arab League-led projects on trade, investment, and infrastructure, sectors that have been largely inaccessible due to arrears.
Somalia has undertaken significant fiscal reforms in recent years, including meeting benchmarks under the International Monetary Fund and World Bank’s debt relief initiatives. Officials in Mogadishu said the Arab League’s decision aligns with similar international support aimed at restoring Somalia’s economic credibility.
Regional analysts note that the move not only eases Somalia’s debt burden but also signals renewed political backing from Arab states at a time when Mogadishu is navigating security challenges and regional disputes.
The Arab League, which Somalia joined in 1974, has pledged to expand cooperation with Mogadishu in education, trade, and reconstruction. Somali diplomats say negotiations are underway to secure further investment commitments once the debt clearance is finalized.