twitter Facebook Linkedin acp Contact Us

AfDB and development partners propel Somalia back from the brink

Somalia also benefitted from the Bank’s drought-related assistance channeled through the Intergovernmental Authority on Development. (Image source: United Nations Photo/Flickr)

In early 2020, Somalia, with support from the United Kingdom Government and the European Union, settled its arrears to the African Development Bank (AfDB), paving the way for the lifting of 30-year old sanctions imposed by the Bank and the resumption of full engagement with the fragile East African country

A US$122.55mn grant agreement signed in March, between Bank vice-president for regional development, Integration and Business Delivery, Khaled Sherif and Somali Finance Minister Abdirahman Beileh marked a milestone on a tough but necessary process of rehabilitation which began in 2014.

The shift to a new and more hopeful phase in which Somalia, with assistance from the Bank and other development partners, can accelerate its national development agenda of consolidating peace, fighting poverty and ensuring inclusive growth “is a new beginning” for the country. “We stuck with our reforms, we were persistent, and it has paid off,”  Minister Beileh said.

The reforms, driven by IMF Staff Monitored Programmes (SMPs), restored the confidence of International finance Institutions and led the UK and the EU to provide the funding to support the clearance of Somalia’s loan arrears to the Bank Group.

“I am absolutely delighted that the African Development Bank provided the leadership needed to push for and successfully negotiate the arrears clearance for Somalia. It was a reflection of the power of partnerships and consensus building,” AfDB’s president Akinwumi Adesina said.

Although Somalia had been under the Bank’s sanctions since 1990 when the government of Siad Barre fell, the institution continued to provide technical and governance support to the country through the African Development Fund, Transition Support Facility, and other special funds including Special Relief Funds, Africa Legal Support Facility Green Environment Fund, African Water Facility, RWSSI and the Multi-Partner Somalia Infrastructure Fund.

Somalia also benefitted from the Bank’s drought-related assistance channeled through the Intergovernmental Authority on Development.

The Bank’s current portfolio in Somalia totals US$298mn, covering operations in agriculture, water and sanitation, transport, social and energy, and multi-sectoral projects including four economic and financial governance projects and one statistics project. The portfolio includes the Economic and Financial Reforms Support Program (EFRSP) of just over US$122mn approved in February 2020. The EFRSP is a stand-alone general budget support operation that is part of the Bank’s contribution to Somalia’s post-arrears clearance and aims to support the country’s on-going economic and financial reforms.

The Bell team in Richards Bay consists of more than 800 machinists, welders, and assemblers. (Image source: Bell)

GFE Power Product’s extensive range covers generators from 10 kVA up to 3,000 kVA. (Image source: GFE Power Products)

The funding is the largest-ever equity raise in the minigrid industry according to Husk. (Image source: Adobe Stock)

The initiative will help African contractors participate in annual infrastructure investments. (Image source: Afreximbank)

ITS has evolved into a sophisticated systems approach, providing numerous opportunities to revolutionise road networks. (Image source: Adobe Stock)

Invest International’s Lara Muller; Ivory Coast Minister of Finance and Economy, Adam Coulibaly; and Ambassador Designate to Ivory Coast, Jeroen Kelderhuis. (Image source: Invest International)

The Yellow Metal Machine Rental team with some Wacker Neuson equipment. (Image source: Wacker Neuson)

Although displaying resilience, the report warns that African banks remain exposed to physical climate risks due to both sovereign and industry lending. (Image source: Adobe Stock)

WAA and VCMI will seek to establish regulatory frameworks to enable access to high integrity and fair voluntary carbon markets for WAA member countries. (Image source: Adobe Stock)

The parties will also promote the mutual exchange of information and expertise in the field of export credit policies and practices. (Image source: TBD Group)

Inside Condra’s Johannesburg factory: an overhead crane positions an electric motor during assembly of hoist and crab. (Image source: Condra)

IVECO is renewing its entire product range, all at once. (Image source: IVECO)

The MoU was signed alongside the Africa Health Business Symposium. (Image source: Africa CDC)

Both the IMF and EIU expect SSA to rank as the world’s second fastest growing economy in 2024. (Image source: Adobe Stock)

There has been a focus on the sugar industry. (Image source: Adobe Stock)

Evolving concept of energy security must address energy demand, system flexibility, technology access and infrastructure development, says IRENA. (Image source: IRENA)

World Bank & African Development Bank partner to provide electricity access to 300 million Africans by 2030, leveraging public-private investments. (Image source: Adobe Stock)

(L-R): Dr Diane Karusisi, CEO, Bank of Kigali and Dr Reda Helal, group managing director – processing, Africa and co-head group processing, Network International. (Image source: Network International)

At WFES, Gotion High-tech will showcase its latest products and leading green energy solutions at its booth. (Image source: Gotion High-tech)

The new Perkins 5012 is a full-authority electronic engine optimised and purpose-built for power generation applications. (Image source: Perkins)

SSAB will begin deliveries of the new products in 2026.

The key issues restricting sub-Saharan Africa’s manufacturing sector will be unpacked at Manufacturing Indaba later this year. (Image source: Adobe Stock)

Through the innovative solution, each vessel can fill two tank containers on average between two ports. (Image source: Maersk)

Hyphen is developing sub-Saharan Africa’s largest, most advanced and only fully-vertical integrated green hydrogen project. (Image source: Hyphen)

According to Liebherr, the Used Equipment Marketplace is extremely user-friendly. (Image source: Liebherr)

Electricity storage will be pivotal in unlocking renewable projects and meeting energy demand. (Image source: Adobe Stock)

With RFID, assets can be given unique digital identities that enable users to identify and locate them all at once, from a distance, in real time. (Image source: Brady)

Africa Data Centres and DPA SA have broken ground on their solar farm in the Free State. (Image source: Africa Data Centres)

A Cat PM310 Cold Planer in action. (Image source: Caterpillar)

A larger stockholding of WEG products facilitates ready access for customers. (Image source: WEG Africa)