World Bank restores financial ties with Somalia

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The World Bank said it had re-established relations with Somalia after a 30-year break, paving the way for the country to have access to development aid.

The World Bank Managing Director of Operations, Axel Trotsenburg, who stated this in Mogadishu said the move to normalise its relations would open up opportunities for Somalia to access concessional financing from the bank’s International Development Association (IDA).

Trotsenburg said the decision would pave the way for the full resumption of operations so the lender can provide the strongest possible support to Somalia’s efforts toward economic and social recovery.

“It will also enable the country to work closely with all arms of the World Bank Group to attract investment that will support the country’s stability and development.

“This milestone is the result of several years of close cooperation with the Federal Government.

“We now look forward to taking our relationship to the next level with deeper and broader financial and technical support from across the Bank Group,” Trotsenburg explained.

The lender said its decision to reengage is based on the government’s strong record of fiscal, political, social and economic reforms in recent years.

It said Somalia’s fiscal management agenda now covers revenue mobilisation, budgeting, procurement, auditing, and cash management, as well as accountability over Public Financial Management.

“Somalia has made important reforms and has demonstrated strong commitment to staying the course,” Hafez Ghanem, Vice President for Africa, the World Bank said.

 

Peace PIAK