World Bank approves $80m in loans to Somalia

27 Sep 18

The Word Bank has approved $80m in loans to Somalia to assist with public finance reforms, marking the first funding for the government in more than 30 years.

The Washington-based lender suspended its ties with Somalia when war broke out in 1991 and resumed support in 2013 – with a focus on HIV and livestock programmes - but has not approved any direct lending to the government until now.

Its board approved financing of $60m for the Recurrent Cost and Reform Financing Project and $20m for the Domestic Revenue and Public Financial Management Capacity Strengthening Project.

These will support the government in mobilising and redistributing the resources needed to rebuild the country after three decades of conflict.

“They represent a milestone in Somalia’s development and reconstruction,” the bank said.

The World Bank also pledged to work with the government to improve services like education and healthcare, access to clean water and energy finance for its citizens – all under a programme called the Country Partnership Framework.

Hafez Ghanem, vice president of the World Bank for Africa, said: “Somalia’s stability and prosperity are key to the stability of the region as a whole.

“We applaud the government for their commitment to reform and the steps taken towards building a better future for the country.”

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