Somalia secures first World Bank grant in 30 years
The World Bank has approved $80 million in grants for Somalia to fund public finance reforms – the organisation’s first disbursement to the conflict-ridden country in 30 years.
The World Bank suspended ties with Somalia when war broke out in the Horn of Africa nation in 1991. Support was resumed in 2003 but the Washinton-based lender hasn’t approved any direct lending until now, focusing its efforts on projects with other organisations – such as HIV and Aids programmes.
Somalia secures $80 million World Bank loan
The World Bank has approved financing of $60 million to help Somalia increase the capacity of its financial institutions while a further $20 million will go towards education and energy projects. The organisation also says it will work with the government to improve services such as education and healthcare, access to clean water, energy and finance for its citizens, under a programme called Country Partnership Framework.
Somalia’s economy is forecast to grow by up to 4.5 percent annually between 2019-2002 and the World Bank aims to help the country maximise its economic potential during this time.
Somalia is still struggling with conflict in parts of the country against militant group Al-Shabaab and attacks continue to shake the capital of Mogadishu. Drought is a recurring issue for the Horn of Africa nation and government corruption remains to be a major obstacle for political and economic progress in the country.
However, Somalia’s finance minister Abdirahman Duale Beileh says the World Bank’s commitments prove his country is earning back the trust of international financial agencies.
Featured image: By ChuckTBaker – Own work This file was derived from: 320 worldbank-logo.jpg:, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=32076789