War-torn Somalia wins rare praise from IMF and secures two key funding deals

February 06, 2020 (AO) – During a meeting held last month in Addis Ababa, Ethiopia, Somalia reached two critical agreements with the IMF mission team at a meeting led by Allison HollandThis is after the war-torn country showed commitment to policy and reform implementation, something which has impressed the International Monetary Fund.The three-year economic reform programme will strengthen public financial management, increase domestic revenue mobilisation and supporting the Central Bank.

Somalia is now closer to debt relief under the Heavily Indebted Poor Countries Initiative and start receiving funding from bilateral and multilateral partners.

This is after the war-torn country showed commitment to policy and reform implementation, something which has impressed the International Monetary Fund.

During a meeting held last month in Addis Ababa, Ethiopia, the country reached two critical agreements with the IMF mission team at a meeting led by Allison Holland, and agreed on the Staff-Monitored Programme (SMP) and Reaches Staff-Level Agreement on a new three-year macroeconomic reform programme that could be supported by the Extended Credit Facility (ECF) and Extended Fund Facility (EFF).

Somalia was represented by Finance Minister Abdirahman Dualeh Beileh, Minister of Planning Gamal Hassan, and Central Bank Governor Abdirahman Mohamed Abdullahi.

In a statement after the meeting, the IMF team later commended Somalia for the good progress in implementing key policies under SMP IV.

“The mission commended the authorities on the success in enacting several critical Bills, including on revenue, public financial management, and Anti-Corruption.

In addition, the mission welcomed the authorities’ ongoing efforts to deepen inter-governmental fiscal relations at political and technical levels. Domestic revenue collection has remained strong, with domestic revenues through November reaching $194.6 million, relative to a full year target of $196 million,” reads part of the statement by Mr Holland.

The three-year economic reform programme is intended to guide Somalia’s reforms over the period between the HIPC decision and completion and support the implementation of the Ninth National Development Plan (NDP9) and strategy for inclusive growth and poverty reduction.

It will also build on strengthening public financial management, increase domestic revenue mobilisation and supporting the Central Bank.