The Ministry of Finance has announced that Somalia’s economy is relatively healthy because of record grants from international partners.
According to an announcement the ministry made on August 19, the government usually collects revenue from fees, customs, and domestic taxes.
Grants from foreign sources, including international partners, play a big role too.
This year, the foreign grants have increased to record levels. As of June 2020, the share of grants from international partners to the total revenue stood at 61.2 percent.
When evaluated against the three-year average, revenue from international grants has increased by a massive 17.3 percentage points in 2020.
Increased grants from foreign sources indicate that Somalia is now a more attractive destination to international donors because of the policies put in place by the government.