The Executive Board of the International Monetary Fund (IMF) has completed the third review of Somalia’s economic program under the Extended Credit Facility (ECF) arrangement, enabling the immediate disbursement of approximately US$10 million to the Federal Government of Somalia.
The decision reflects continued progress under Somalia’s reform program, which aims to stabilize the economy, improve governance, and lay the foundation for sustainable growth. The disbursement brings total IMF support to Somalia under the current ECF to over US$30 million.
Somalia’s Minister of Finance, Bihi Egeh, welcomed the development, stating, “This approval is a testament to the real and steady progress Somalia is making in domestic revenue mobilization, public financial management, financial sector development, and strengthening governance frameworks.”
The ECF arrangement, approved in December 2023, is part of Somalia’s post-debt relief program following its successful completion of the Heavily Indebted Poor Countries (HIPC) Initiative. The program is designed to support the country’s economic and institutional reform agenda over a three-year period.
The IMF Executive Board praised the Somali authorities for their commitment to reform, despite persistent challenges, including security risks, climate shocks, and humanitarian needs.
Continued implementation of reforms is seen as critical to maintaining macroeconomic stability and unlocking broader international support.
The IMF also urged the Somali government to strengthen tax administration, enhance the transparency of public spending, and advance efforts in financial inclusion to spur private sector growth and resilience.
Somalia’s partnership with the IMF and other international institutions remains a cornerstone of its broader vision for economic transformation and self-reliance.