Somalia’s Finance Minister, Bihi Iman Egeh, recently hosted a high-level delegation from the Islamic Development Bank (IsDB) to discuss the nation’s renewed engagement following substantial debt relief achievements. This meeting signifies a pivotal moment in Somalia’s economic reform journey, highlighting the country’s commitment to poverty reduction and sustainable growth.
In December 2023, Somalia reached the Completion Point under the Heavily Indebted Poor Countries (HIPC) Initiative, resulting in $4.5 billion in debt forgiveness from international creditors, including the IMF, World Bank, and Paris Club members. This milestone reduced Somalia’s external debt from 64% of GDP in 2018 to less than 6% by the end of 2023.
Building on this progress, Somalia has continued to secure debt relief agreements, such as a $306.5 million deal with the Arab Monetary Fund in April 2025, further demonstrating international confidence in the country’s economic trajectory.
The discussions with the IsDB delegation focused on Somalia’s ongoing economic reforms, its vision for poverty reduction, and the advancement of public financial management. Minister Egeh expressed gratitude to the Bank for its enabling role in Somalia’s debt relief efforts and emphasized the country’s commitment to effective development programs and investment through a new Country Engagement Framework (CEF) aligned with the Somali National Transformation Plan.
These developments underscore Somalia’s dedication to strengthening its economy, enhancing public services, and fostering resilience and progress for its people.