Somalia: Somalia, World Bank Reaffirm Economic Reform Partnership

What the report says

AllAfrica, carrying a Radio Dalsan report, said Somalia and the World Bank renewed their commitment to cooperate on economic reforms, institution-building and regional integration during talks in Mogadishu on July 22. The meeting included Somalia’s State Minister for Foreign Affairs and International Cooperation Ali Mohamed Omar, Permanent Secretary Hamza Adan Haadow and World Bank Country Manager Hideki Matsunaga.

According to the report, the Ministry of Foreign Affairs said discussions centered on matching World Bank assistance with Somalia’s development priorities. These include stronger public institutions, closer regional links and economic diplomacy aimed at drawing investment and widening trade. The ministry also credited the World Bank with support for governance reforms, infrastructure, public services and other recovery needs.

Radio Dalsan reported that the talks come as Somalia tries to build on the debt relief it secured at the completion point of the Heavily Indebted Poor Countries Initiative in December 2023, when more than $4.5 billion in external debt was cancelled. Since then, the government has sought to maintain reforms, improve domestic revenue collection and create a more favorable environment for foreign investment. The World Bank has also backed sectors including transport, education, health, social protection, urban development and digital transformation, and has supported Somalia’s National Transformation Plan for 2025-2029.

The report noted that Somalia’s outlook remains vulnerable, with growth estimated at 3 percent in 2025 after about 4 percent in 2023-24, and projected at 2.8 percent in 2026 and 3.1 percent in 2027. Pressures cited include lower foreign aid, drought, higher living costs, climate risks, global price shocks and limited productive capacity.