Africa Biz Construction and Business News
World Bank Authorizes $80M for Somalia
September 27, 2018
On September 25, the World Bank announced it was authorizing $80 million in loans to support public finance needs in the country.
These were the first funds the World Bank has authorized for Somalia in 30 years.
According to a statement from the Bank, $60 million of the loans are for the Recurrent Cost and Reform Financing Project and $20 million is for the Domestic Revenue and Public Financial Management Capacity Strengthening Project. The bank said that, these loans “represent a milestone in Somalia’s development and reconstruction”.
The timing is good for both parties, as Somalia’s economy is stabilizing and growing. The country’s GDP is expected to grow between 3.5 and 4.5 percent between 2019-2022., the years where the loans will be in effect.
The World Bank long ago had stronger connections with Somalia but suspended them in 1991 when war broke out there. It restarted financial support for the country in 2003, but then it was focusing on HIV/AIDS and livestock programs.
As the World Bank rekindles its relationship with Somalia, it said it will work with the country government in Mogadishu on improvements in education, healthcare, access to clean water, energy and finance. This will be administered under the World Bank’s Country Partnership program.
Copyright: North America Procurement Council Inc., PBC