The World Bank has disbursed a sum of 100-million-U.S.-dollar grant to aid Somalia’s reform, improve its economic sector, strengthen fiscal transparency and boost revenue.
The World Bank Country Manager for Somalia, Kristina Svensson said:
“This operation will increase the government’s fiscal space to respond to the drought situation while continuing to support reforms that advance progress toward attaining debt relief.”
The World Bank stated further that the grant will support the continuation of Somalia’s reform efforts in reaching the Completion Point of the Heavily Indebted Poor Countries (HIPC) Initiative when Somalia will be eligible for full and irrevocable debt relief.
According to the World Bank, “the grant will help create the building blocks for strengthening intergovernmental fiscal cooperation to enhance the ongoing state stabilization agenda critical for stimulating inclusive economic growth by fostering trust and enhancing financial transparency between the federal government and member states.
“Together, these efforts will help improve the government’s ability to continue to provide cash transfers for the country’s poor and most vulnerable, including women, which are a critical coping mechanism amid continuing shocks.”
The bank disclosed that Somalia still experiences repeated cycles of drought and floods, higher commodity prices and the COVID-19 pandemic, which continue to test the resilience of the Somali population.