Somalia reaches two critical agreements with IMF over funding
Somalia is committed to policy and reform implementation bringing it closer to debt relief under the Heavily Indebted Poor Countries Initiative, and receive funding from bilateral and multilateral partners. The country reached two critical agreements with the International Monetary Fund mission team at a meeting led by Allison Holland, and agreed on the Staff-Monitored Programme (SMP) and Reaches Staff-Level Agreement on a new three-year macroeconomic reform programme that could be supported by the Extended Credit Facility (ECF) and Extended Fund Facility (EFF). The meeting was held in Addis Ababa, Ethiopia in January. Somalia was represented by Finance Minister Abdirahman Dualeh Beileh, Minister of Planning Gamal Hassan, and Central Bank Governor Abdirahman Mohamed Abdullahi. Others were Hodan Mohamoud Osman, secretary of the Senate Finance Committee; Mohamud Abdirahman Sheikh Farah, chairman of the House of the People Commerce Committee. “The mission commended the authorities on the success in enacting several critical Bills, including on revenue, public financial management, and Anti-Corruption. In addition, the mission welcomed the authorities’ ongoing efforts to deepen inter-governmental fiscal relations at political and technical levels. Domestic revenue collection has remained strong, with domestic revenues through November reaching $194.6 million, relative to a full year target of $196 million,” reads the statement by Mr Holland. The three-year economic reform programme is intended to guide Somalia’s reforms over the period between the HIPC decision and completion and support the implementation of the Ninth National Development Plan (NDP9) and strategy for inclusive growth and poverty reduction. It will also build on strengthening public financial management, increase domestic revenue mobilisation and supporting the Central Bank. The IMF team holds annual consultative meeting with Somalia to discuss economic developments, review progress on the implementation of economic reforms and discuss a follow-up Staff Monitored Programme to consolidate reforms. In 2018, economic growth was projected to increase to 3.1 per cent from an 2.3 per cent in 2017, and inflation expected to ease to under 3 per cent from 5.2 per cent in 2017.