Somalia secures Sh39.6 billion debt relief agreement with Arab Monetary Fund
While the AMF confirmed the agreement in a statement, it did not share specific terms.
Somalia has finalized a debt relief agreement worth Ksh.39.6 billion with the Arab Monetary Fund (AMF), a move hailed by the government in Mogadishu as a key achievement in its ongoing economic reform efforts.
The country, located in the Horn of Africa, is striving to rebuild its economy following decades of civil conflict.
In addition to the instability, Somalia has faced extreme weather conditions, including droughts and floods, as well as devastating locust invasions in recent years.
In a significant milestone last year, Somalia managed to have 99 percent of its debt to Paris Club creditor nations written off—an essential step toward reintegrating into the global financial system.
The arrangement with the Arab Monetary Fund (AMF), headquartered in Abu Dhabi and known for supporting economic growth and financial stability in Arab nations, focuses on reorganizing Somalia’s debt to the institution.
While the AMF confirmed the agreement in a statement, it did not share specific terms.
Somalia’s Finance Minister, Bihi Egeh, emphasized the importance of the deal, describing it as a key milestone in the country’s broader debt relief program and a vital step toward renewed cooperation with the fund.
The signing ceremony, held in Kuwait on Wednesday, was highlighted by Somalia’s national news agency, SONNA, as a sign of increasing global confidence in the country's reform agenda and overall economic direction.