Somalia is set to receive $125 million in financial assistance after the World Bank’s Executive Board approved a second round of funding to support the country’s development policy agenda. The funds, provided through the International Development Association (IDA), aim to reinforce economic resilience, improve public financial governance, and spur sustainable private sector growth.
According to the news outlet Larolav, this marks the final phase of a two-part program designed to help Somalia strengthen its economy. The first $125 million tranche was approved in 2024.
Hideki Matsunaga, the World Bank’s Country Manager for Somalia, said the new financing reflects the government’s strong commitment to implementing critical institutional reforms — reforms that will help build a stable state and foster social cohesion.
The new funding will focus on:
- Strengthening fiscal stability through increased tax revenue and more transparent, efficient public spending.
- Reducing reliance on foreign aid by investing in renewable energy to expand electricity access, with a goal of reaching 50 megawatts of generation capacity by the end of 2026.
- Developing the private sector by promoting microfinance, establishing drought insurance schemes, and boosting investment in the fishing industry to increase seafood exports.
All these initiatives fall under the World Bank–Somalia partnership strategy for 2024–2028, implemented in collaboration with international development partners.
