The European Union (EU) and United Kingdom helped Somalia to clear the arrears it owed on all loans to African Development Bank (AfDB).
Both the EU and UK made full payments to the tune of $122.55 million.
Consequently, all sanctions placed upon Somalia that made it impossible for the Horn of Africa country to engage with AfDB are now lifted.
In 2014, Somalia embarked on the long road to clear all debts owed to its international partners. Initially, it had to complete three Staff Monitored Programs (SMPs).
The International Monetary Fund (IMF) runs the SMPs.
This would never have been possible without the commitment of the government of President Mohamed Farmaajo, who worked closely with his Prime Minister Hassan Ali Khaire.
Abdirahman Beileh, the Minister of Finance, said,” We are happy that we never gave up on reforms. Our persistence has paid off handsomely. Our debts are now cleared in full.”
Beileh expressed his belief that the debt clearance heralds a new beginning for the East African nation.
AfDB’s President Akinwumi Adesina hailed this occasion as a “historic moment” for Somalia. He expressed his delight at the partnership and consensus building involved in the whole process.