🇸🇴 Somalia Gets $10 Million IMF Boost to Support Economic Reforms

🇸🇴 Somalia Gets $10 Million IMF Boost to Support Economic Reforms

 

On July 10, 2025, the International Monetary Fund (IMF) approved a new $10 million disbursement to Somalia. This decision comes as part of the country’s ongoing partnership with the IMF through the Extended Credit Facility (ECF), which aims to support low-income countries committed to reform.

Strong Progress Toward Stability

The IMF praised Somalia’s continued progress in improving its financial management, tax systems, and budget transparency. Over the past two years, Somalia has worked hard to increase its domestic revenue, modernize customs, and improve control over public spending.

With this new disbursement, the total financial support Somalia has received from the ECF program now exceeds $30 million. This support plays a vital role in keeping the country’s economy stable during a time of global and regional challenges.

Growth Slows, But Reforms Continue

The IMF noted that Somalia’s economic growth is expected to slow slightly—from 4% in 2024 to around 3% in 2025. This slowdown is linked to external factors such as reduced international aid, climate-related shocks, and rising global costs.

Despite these challenges, Somalia continues to push forward with reforms. These include expanding digital financial services, improving public investment systems, and creating better oversight of government contracts and pensions.

Why This Matters

Somalia still relies heavily on foreign assistance, but it’s taking big steps toward becoming economically self-sufficient. The IMF’s support is not just financial—it’s also a sign of international confidence in Somalia’s reform path.

Continued efforts to build stronger institutions, increase transparency, and improve service delivery will be essential for long-term progress. Somalia’s reform journey is far from over, but it is clearly moving in the right direction.