Sunday September 21, 2025

 


Somalia’s Finance Minister Bihi Iman Egeh (right) speaks during the opening of the fourth review meeting of the International Monetary Fund’s Extended Credit Facility in Nairobi on Sunday, as senior officials from the Federal Government of Somalia look on. The discussions focus on fiscal reforms and economic progress tied to IMF support. SONNA

Mogadishu (HOL) — Somalia’s Finance Minister Bihi Iman Egeh on Sunday opened the fourth review meeting of the country’s Extended Credit Facility (ECF) program with the International Monetary Fund in Nairobi.

The talks bring together senior officials from the Federal Government of Somalia and IMF representatives to assess progress on economic reforms, including fiscal discipline, public financial management and domestic revenue mobilization, which underpins Somalia’s reform strategy following its debt relief completion in 2023. The outcome will determine future IMF disbursements under the program.

The ECF arrangement, approved in December 2023, provides Somalia with multi-year concessional financing linked to measurable reforms following the country’s completion of debt relief. In July, the IMF concluded the program’s third review, unlocking about $10 million and bringing total disbursements to roughly $70 million.

While the IMF praised Somalia’s reform momentum, it warned that the country’s economic outlook has weakened. Growth is projected to slow to 3 percent in 2025, down from 4 percent the previous year, weighed by foreign aid cuts, climate shocks and global uncertainty.

The IMF stressed the need to press ahead with customs modernization, the new income tax law and civil service pay and pension reforms to ensure fiscal sustainability.

Somali officials are also working to strengthen the central bank, expand financial inclusion and cautiously reintroduce the Somali shilling under a currency board system. Governance reforms, including a new legal framework for the petroleum sector, are seen as critical to improving transparency and reducing corruption.

The Nairobi meeting is expected to produce updated benchmarks for the coming review cycle.


Delegates from the International Monetary Fund take part in discussions with Somali officials during the fourth review meeting of Somalia’s Extended Credit Facility program in Nairobi on Sunday. The talks assess progress on economic reforms tied to IMF support.