Mogadishu, Somalia – Somalia has received a vote of confidence from the International Monetary Fund after IMF staff confirmed that the country continues to implement key financial reforms with discipline and consistency. In a statement released this week, the global lender announced that its team and Somali authorities have reached a staff-level agreement on the fourth review of the country’s Extended Credit Facility (ECF), paving the way for continued financial support.
The ECF arrangement, designed to help Somalia stabilize its economy and build sustainable growth, is contingent on meeting strict performance benchmarks. According to the IMF, Somalia has not only stayed on course but demonstrated “strong reform implementation and program performance” despite persistent challenges ranging from security threats to the impacts of climate shocks.
The agreement follows intensive discussions between IMF staff and officials from the Ministry of Finance and the Central Bank of Somalia. While final approval must come from the IMF Executive Board in the coming weeks, the staff-level endorsement signals that Somalia is likely to unlock the next tranche of concessional funding.
Officials in Mogadishu have framed the development as proof of the country’s rapidly improving institutional discipline. Over the past year, the government has introduced new tools to boost domestic revenue collection, digitized parts of the public finance system, and tightened controls on expenditures — reforms that were once seen as unattainable in a post-conflict environment.
For many Somalis, IMF approval is more than just a financial milestone; it represents growing international trust. Economists note that successful completion of the ECF review will not only help stabilize the currency and strengthen the budget but also improve investor confidence ahead of major infrastructure and private sector investments.
The IMF emphasized that Somalia must continue deepening reforms to expand opportunities for its fast-growing youth population and to protect the most vulnerable from rising food and energy prices. But for now, the message from Washington is clear: Somalia is staying the course — and the world is taking notice.