MOGADISHU, (HAN) – The Somali government and the International Monetary Fund (IMF) have reached an agreement for Somalia to receive $30 million to cushion the country against the impacts of reduced foreign aid and climate-related economic shocks.
The agreement followed discussions held between September 16 and October 8, 2025, led by Finance Minister Biixi Imaan Cige and IMF Mission Chief for Somalia, Ran Bi.
According to the IMF, the new $30 million package will be disbursed in two tranches upon completion of the fourth and fifth reviews under the Extended Credit Facility (ECF). This brings the total amount of IMF support to Somalia under the ECF program to $100 million, aimed at boosting economic resilience and strengthening financial management.
The Somali government was commended for improving tax collection—particularly following the implementation of the new income tax law—and for maintaining tight control over public spending.
Despite these reforms, the IMF noted that Somalia’s economy remains vulnerable and requires continued support to consolidate progress and withstand the effects of declining foreign grants.
While the economy grew by 4.1% in 2024, the IMF projects a slowdown to 3% in 2025, with a modest recovery to 3.3% in 2026, largely due to aid cuts.
The IMF urged the international community to sustain its support for Somalia to safeguard recent gains and accelerate ongoing economic reforms.
