The International Monetary Fund (IMF) has completed the third review of Somalia’s debt relief program, unlocking an immediate $10 million disbursement to support the country’s ongoing economic reforms.
This funding will be channeled into budgetary support, aimed at accelerating Somalia’s economic transformation.
The IMF noted that Somalia’s economy continues to face major headwinds, including declining international aid, increasing climate-related disruptions, and elevated uncertainty. As a result, economic growth is projected to slow to 3% in 2025, down from the estimated 4% in 2024.
Despite these challenges, the IMF commended the Somali government for strong progress in implementing its reform agenda, particularly in the areas of domestic revenue mobilization, public financial management, and building investor and donor confidence.
Key reforms highlighted include efforts to improve tax collection, modernize customs operations, implement the new income tax law, and strengthen public debt and cash management.
The IMF also praised the institutional strengthening of the Central Bank of Somalia and progress made in the plan to reintroduce the Somali Shilling into wider circulation — a currency that has been largely absent in much of the country.
In addition, Somalia was recognized for strides in governance reforms, especially in the petroleum sector, where transparency and accountability in resource management remain critical.
