IMF Provides Somalia with $30 Million to Bolster Economy and Fiscal Reforms

Mogadishu, Somalia – The Somali government and the International Monetary Fund (IMF) have reached an agreement for a $30 million disbursement to Somalia. This financial support is aimed at mitigating the economic impact of reduced foreign aid and climate-related shocks.

The agreement follows discussions held between the two parties from September 16 to October 8, 2025, led by Somalia’s Minister of Finance, Bihi Iman Cige, and the IMF’s Mission Chief for Somalia, Ran Bi.

The IMF stated that this new $30 million funding will be allocated in two tranches, following the completion of the fourth and fifth reviews of Somalia’s Extended Credit Facility (ECF) program. This brings the total disbursements under the program to $100 million, underscoring the IMF’s continued support for Somalia’s efforts to strengthen its economy and public financial management.

The Somali government was commended for its progress in improving revenue collection, particularly following the implementation of a new income tax law, and for maintaining fiscal discipline.

The IMF noted that Somalia’s economy still requires sustained support to consolidate the gains achieved through its reforms and to buffer against the decline in foreign aid. Although economic growth reached 4.1% in 2024, the IMF projects a deceleration to 3% in 2025, with a modest recovery to 3.3% expected in 2026, largely due to cuts in external assistance.

The IMF urged the international community to maintain its support for Somalia to safeguard the progress made and to accelerate the ongoing economic reforms.