Somalia has signed a $306.5 million debt relief deal with the Arab Monetary Fund, calling it a major economic milestone.
Somalia is rebuilding its economy after decades of civil war, droughts, floods and locust invasions caused severe damage.
In 2023, 99% of Somalia’s debt to Paris Club nations was cancelled—a move seen as helping its return to global financial systems
The AMF deal restructures Somalia’s debt to the fund which supports economic development in Arab states. Details weren’t disclosed.
Finance Minister Bihi Egeh called the agreement crucial for debt relief and key to Somalia’s renewed engagement with the fund.
The deal, signed Wednesday in Kuwait, shows growing global confidence in Somalia’s economy, according to state news agency SONNA.
