Somalia, 20 December 2023 – “We sought shelter at the IDP camp as our homes were marooned and floods swept away our animals and crops. We lost everything, and many families are now displaced,” says Nur Abdulkadir, a father of three, at the Dhobley Internally Displaced Persons (IDP) camp.

With support from the Italian government, ATMIS Force Commander Lt. Gen. Sam Okiding and the military Chief of Staff Maj. Gen. Kindu Gezu delivered relief items to representatives of Jubaland and South-West State administrations in separate events held in the state capitals of Dhobley and Baidoa.

“I thank the Jubaland administration and our partners, especially the Italian government, for enabling us to support populations affected by the recent floods. This gesture signifies our long-standing solidarity with the government and the people of Somalia, and we will continue to offer support whenever required,” stated Lt. Gen. Okiding.

ATMIS Sector Two Commander, Brig. William Kamoiro, who accompanied the Force Commander, mentioned that AU troops collaborated with the Jubaland administration and local communities to assist affected families and repair damaged infrastructure. KDF engineers have been deployed to drain the flooded Dhobley airstrip and open the Juba Valley transport corridor.

“The floods have hit us hard; this support is exactly what we needed to keep our families alive,” said Garane Abdi at the Barwaaqo IDP camp where he fled with his wife and four children for refuge.

Abdulkadir and Abdi are among thousands of families in Dhobley and Baidoa who received humanitarian support from the African Union Transition Mission (ATMIS). While receiving the donation on behalf of the Jubaland administration, Dhobley District Commissioner Hassan Hashi thanked ATMIS for the support and emphasized the Federal Government’s commitment to relieving the suffering of those affected by the floods.

“In the wake of the El Nino floods, particularly in Dhobley, where heavy rains devastated many families, this support could not have come at a better time. We have received essential food supplies and non-food items, a timely initiative that has benefited over 2,000 households,” said the District Commissioner.

In Baidoa, the military Chief of Staff, Maj. Gen. Kindu Gezu recognized that cooperation between partners, government entities, and nongovernmental organizations is crucial to the collaboration with communities, “Where these sectors have proven that the military and civilian coordination is effective, it is essential to enhance further and strengthen the close cooperation,” he added.

The initiative, which targeted flood-hit families in Jowhar, Beletweyne, Baidoa, and Dhobley, is part of ATMIS Civil-Military cooperation to establish relations and respond to the immediate needs of communities.

Abdinasir Abdi Arush, South-West State Minister for Humanitarian Affairs, and his Internal Security counterpart, Hassan Abdikadir Mohamed, applauded the Italian government for its support to vulnerable members of the society.

Wednesday December 20, 2023

Washington, DC: On December 19, 2023, the Executive Board of the International Monetary Fund (IMF) approved a new 3-year arrangement under the Extended Credit Facility (ECF) for Somalia in an amount of SDR 75 million (about 45.9 percent of quota, about US$100 million).

Approval of the ECF arrangement enables immediate disbursement of SDR 30 million for budget support (about US$40 million). This follows the successful completion of a previous ECF arrangement approved in 2020 and that expired on December 15, 2023 (see Press Release No. 23/437) and reaching the Completion Point under the Heavily Indebted Poor Countries (HIPC) Initiative on December 13, 2023 (see Press Release No. 23/438).

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The Executive Board’s decision to approve the new program was taken on a lapse of time basis, following Board discussion of the authorities’ program request on December 13, 2023. [1]

Achievement of the HIPC Completion Point and completion of the 2020 ECF is a testament to the Somali authorities’ sustained track record of reform implementation over the past years, despite numerous challenges. Though these efforts, Somalia has made considerable progress in strengthening key economic and financial institutions, as well as improving governance.

However, despite the progress achieved, Somalia faces significant challenges, including those stemming from economic, social, security, and climate risks. In 2022, an estimated 54 percent of the population was living on less than US$ 2 per day. Growth is currently insufficient to reduce widespread poverty, address large social needs, and create sufficient jobs for the youth. Somalia is highly vulnerable to climate shocks that hurt growth and hinder poverty reduction efforts.

Faced with these challenges, the authorities are embarking on a new 3-year IMF-supported program. The program will support the authorities’ post-HIPC reform strategy to further strengthen key economic institutions and promote macroeconomic stability and growth, in line with Somalia’s national development plan and the government’s long-term vision. Reform implementation will be accompanied by extensive IMF capacity development assistance, supported by the Somalia Country Fund.

Fiscal policy will be guided by a prudent framework that balances the need for higher development expenditure with protecting fiscal sustainability and taking into account capacity constraints. External financing is expected to be based solely on grants and concessional loans to preserve debt sustainability. Increasing domestic revenues is a key pillar of the reform strategy, including implementation of a new income tax law.
Efforts to improve public financial management include further progress on payroll integration, expenditure controls, and fiscal transparency, as well as strengthening debt management capacity and public investment management capacity.

Continued improvements in the institutional capacity of the Central Bank of Somalia, including in the context of the currency reform, will foster financial deepening and financial inclusion. It will also be important to continue to advance reforms to improve AML/CFT and governance to promote private investment.