Somalia Struggles to Fund Printing of New Currency

Somalia Struggles to Fund Printing of New Currency

Mogadishu – Somalia’s federal government is facing major challenges in its efforts to print a new national currency, according to Prime Minister Hamza Abdi Barre.

For years, Somalia has relied heavily on the old 1,000-shilling banknote, which has become increasingly inadequate for modern economic needs. The Prime Minister stressed that the introduction of new currency is now urgent, but financial constraints continue to stall progress.

Barre revealed that an estimated $70 million is required to complete the printing of the new currency. So far, only $30 million has been secured through unspecified foreign aid, leaving a critical shortfall of $40 million. The lack of transparency over funding sources has also raised questions about the level of international support for Somalia’s economic recovery.

To bridge the gap, the Somali government has entered negotiations with the government of Kuwait, with hopes that assistance will be provided without adding to Somalia’s debt burden.

These remarks highlight the broader economic difficulties facing Somalia, where inflation and currency devaluation have placed severe pressure on daily transactions. Continued dependence on outdated banknotes has slowed economic growth and hampered efforts to stabilize the nation’s fragile financial system.