MOGADISHU (Halbeeg News) – The World Bank said Monday that it has given Somalia a 75-million-dollar grant to assist the government get closer to debt relief.
The grant is the second in a series of two grants that are assisting the country in its quest to qualify for full and irreversible debt reduction under the Heavily Indebted Poor Countries (HIPC) Initiative.
It stated that the government is implementing an ambitious reform programme to build institutions, attract investments, and achieve inclusive economic growth and job creation, which is aligned with the ninth National Development Plan, which outlines numerous priority areas for moving the country forward, including several that are supported by this Development Policy Financing (DPF).
Kristina Svensson, World Bank country manager for Somalia, said in a statement that the DPF supports the government’s aspirations to build the foundations of a modern economy with strengthened institutions.
“It also signals the significant progress Somalia has made in terms of institution-building and economic development, paving the way for a more stable and sustainable future,” Svensson said.
The World Bank said Somalia has approved new laws that establish the institutional environment in key sectors such as fisheries and electricity to develop high-potential sectors for economic growth.
It said a new investment and investor protection law was enacted to mobilize much-needed private capital to develop these sectors. “Despite multiple shocks, Somalia is maintaining macroeconomic stability. These institution-building reforms take Somalia closer toward the goal of attaining debt relief, which will wipe away the legacy of loans contracted during the pre-civil war era, thereby turning a new page in the country’s development trajectory.”
Also, a digital identification law was approved, which can support better know-your-customer protocols, alongside a data protection law to provide safeguards on the use of personal data to help increase access to finance, said the World Bank.
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