Home » IMF approves $9.4m to support Somalia’s National Development Plan

IMF approves $9.4m to support Somalia’s National Development Plan

by CKG Editor

The International Monetary Fund has approved immediate assistance of about $9.4 million to support the implementation of the National Development Plan and to anchor reforms.

In a statement, the global financial Institution has praised Somalia’s “strong reform momentum.”

“Despite significant challenges, including from the continued severe food crisis, Somalia has maintained strong reform momentum and program performance has been satisfactory,” IMF said. “Notwithstanding significant climate, security, and political challenges, the Somalia authorities remain committed to economic reforms and the HIPC process with the aim of building resilience, promoting inclusive growth, and reducing poverty. Program performance has been broadly satisfactory and the HIPC Completion Point appears achievable by 2023Q4.”

The announcement followed the completion of the latest review of one of the IMF programs known as the Extended Credit Facility.

The new disbursement brings total assistance under the debt relief process to about US$ 386M.

IMF said Somalia’s 2023 GDP growth projection was downgraded by ¼ per cent to 2.8 per cent due to droughts and subdued remittances inflows.

“Average inflation is expected to decline to 4.2 per cent in 2023 as commodity prices recede. Near-term risks are elevated, including a worsening of the food crisis if healthy rains are not sustained in 2023 or if commodity prices increase. Other risks include security challenges, political risks, and policy slippages that could delay reaching the HIPC Completion Point,” the statement reads in part.

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