Addis Ababa, Ethiopia – Somalia has announced a dramatic reduction of its external debt, cutting it by more than 90 percent from 64 percent of GDP to under 6 percent, a milestone hailed as a turning point for the country’s economic future.
Speaking at the second Africa Climate Summit (ACS2), Deputy Prime Minister Salah Ahmed Jama described the achievement as a clear signal of Somalia’s determination to move forward after decades of conflict and fragility. He emphasized that the debt relief not only unlocks fiscal space but also offers the foundation for sustainable development and resilience.
“Somalia has slashed its external debt to historic lows, proving that with commitment and strong partnerships, recovery is possible. What Africa now needs is a fair global financial system—one that allows progress to translate into resilience and prosperity,” Jama told delegates.
The debt reduction comes as part of Somalia’s completion of the Heavily Indebted Poor Countries (HIPC) Initiative process, supported by international creditors including the IMF and World Bank. This milestone allows Somalia to re-engage more confidently with global markets, attract investment, and prioritize critical spending on infrastructure, education, health, and climate resilience.
Regional analysts note that Somalia’s success underscores broader African demands for reforms in global financial governance. Leaders at ACS2 have consistently argued that African economies should not be penalized by high borrowing costs and limited access to concessional finance, despite contributing the least to global emissions.
For Somalia, the new fiscal landscape represents both an opportunity and a responsibility.
As Deputy PM Jama stressed, “This is not the end of the journey but the beginning of a new chapter where resilience, prosperity, and fairness must guide Africa’s path forward.”