On February 26, 2020, Somalia received news that AfDB has approved its Arrears Clearance. AfDB had also approved the Policy Based Operation. On March 2, 2020, the country formalized the agreement with AfDB.
Several dignitaries attended the signing ceremony. These included the country’s Minister Finance, Dr. Abdirahman Beileh. Khaled Sherif, AfDB’s Vice President for Regional Development, Integration and Business Delivery, also witnessed the event.
The agreement between Somalia and AfDB is for $122.55 million. With those funds, Somalia has the finances it needs to advance its national development agenda. It will also use the funds to consolidate peace.
For years, Somalia has struggled with inclusive economic growth. It has not been successful in reducing poverty, either. However, that is likely to change now that the country has received funding from AfDB to actualize all that.