Somalis in diaspora backed to rebuild struggling Mogadishu economy

MOGADISHU, Somalia - Over 2 million Somalis living in the diaspora should play an indispensable role in changing the country's economic fortunes, Finance Minister Abdirahman Duale Beileh has said, amid ongoing debt-relief campaigns.

Eclipsed decades of inter-clan conflicts and terrorism, Somalia's economy has struggled to pick, with endemic corruption and dysfunctional financial regulations further wrecking efforts to streamline operations.

But in recent weeks, the country has made huge strides in the implementation of financial reforms, a move that has attracted positive feedback on debt relief by international lenders, IMF said.

Already, IMF, World Bank, African Development Bank [ADB] among other financial institutions have pledged $334 million towards clearance of $5.3 billion debt.

On Monday [today], Mr. Beileh will finalize the debt forgiveness agreement with ADB in Abidjan, with Somalia keen to normalize ties with the rest of the World, Reuters reported.

Last week, Duale, a member of the diaspora himself, signed a series of agreements with the World Bank in Washington, paving way for grants and concessional loans, reports indicate.

“It’s a historic moment,” Abdirahman told Reuters in an interview on Friday. “I’m really happy I get to participate in the renaissance, the rebirth of Somalia.”

On March 31, Somalia officials will meet with Paris Club creditors, with non-Paris Club creditors to attend as well.

He said he hoped the creditors would agree to cancel about 75% or 80% of Somalia’s debt, with the remainder to be repaid on strict and closely supervised terms over the next few years.

However, the Somalis in the diaspora, who contribute to $2 billion or 40 percent of the country's GDP, are expected to play a key role in fixing the country's economy, he said.

But despite their tremendous support to Mogadishu, those who are pretty younger and not well versed with the nation's struggles since the 90s, should change their attitude and help Somalia, he added.

“We need a big perception change, a big cultural shift,” he said, noting that 75% of Somalis were under 30 years old and had no memory of more normal times before 1991. “It is totally a shift of paradigm, a shift of attitude.”

Abdirahman, who also holds a U.S. passport, plans to do his own outreach during a visit to one of the biggest communities in Minneapolis in May.

“You can’t imagine the feeling of being reclassified from a failed state to a normal country,” he said. “To be classified as a normal country is a blessing for us.”

In a statement on Friday, World Bank hailed Mr. Beileh and Prime Minister Ali Hassan Kheire for "fixing financial systems" to pave way for "Somalia's economic recovery".

President Mohamed Abdullahi Farmajo is racing against time to fix a host of issues among them ailing economy, terrorism and strained relationship with federal states, ahead of historic December polls.

Most members of the diaspora live in the US, Canada, and Australia, and a number of them have ventured into politics of their host nations, winning electoral seats. Ilhan Omar, the US Congresswoman, is among those privileged to be elected.

GAROWE ONLINE