Arrears on loans owed by Somalia to the African Development Bank (AfDB) Group have been cleared following the payment in full of US$122.55mn by the governments of the UK and the European Union
This marks the end of sanctions and the resumption of full re-engagement between the AfDB and the East African nation.
The long road to resolution of Somalia’s debt arrears began in 2014 and included the completion of three staff monitored programmes of the International Monetary Fund (IMF) and significant advances on a fourth programme.
Speaking on behalf of the Somali government, minister of finance Abdirahman Beileh, said, “The settlement of the arrears of Somalia to the AfDB is a new beginning for us in Somalia. We stuck with our reforms, we were persistent, and it has paid off.”
In response, the AfDB president Akinwumi Adesina noted, “I commend the government of Somalia for their diligence in implementing reforms and the UK government and the European Union for paying off Somalia’s arrears to the African Development Bank Group. Together, we got it done for the people of Somalia.”
AfDB will immediately provide a policy-based operation to help boost economic growth and accelerated development of Somalia.
AfDB’s current portfolio in Somalia totals US$135mn, covering operations in the agriculture, water and sanitation, transport, social and energy sectors, and capacity building for multiple sectors of the economy.
