The International Monetary Fund (IMF) has warned that a decline in international donor support to Somalia could trigger serious economic repercussions. These include increased poverty and food insecurity, setbacks in social development, and disruptions to ongoing efforts to strengthen government institutions.
“Continued support from international partners is crucial for implementing Somalia’s reform agenda, especially in light of significant uncertainties and growing economic risks,” the IMF stated in a press release.
In its latest report, the IMF noted that Somalia’s economic outlook for 2025 remains highly uncertain, with external aid flows declining and rainfall patterns becoming increasingly unpredictable — both of which are critical to the country’s fragile economy.
On a more positive note, the IMF announced that it has reached a staff-level agreement with Somalia on the third review of the Extended Credit Facility (ECF) program. This agreement paves the way for the disbursement of $10 million, though the final approval still depends on the IMF’s Executive Board.
The IMF also acknowledged that Somalia’s public financial management reforms are progressing slowly. However, it emphasized the need to accelerate efforts to build a transparent and accountable fiscal system in order to stabilize the economy and support long-term growth.
