U.S. Grants Over $1B Debt Relief to Somalia Amid Trump's Election Victory

MOGADISHU, Somalia - Just before Donald Trump cruised to victory in the United States of America's closely contested elections, Washington granted Mogadishu $1.14B for debt relief following stringent economic and financial measures achieved by the country.

The grant, officials said, aims at helping the Horn of Africa nation undertake crucial economic reforms, which are important for the next phase of social-economic development in the country which has been home to chronic conflicts.

The announcement came Tuesday as Somali Finance Minister Bihi Egeh and US Ambassador Richard Riley formalized the arrangement in Mogadishu.

“The American government debt totaling over $1.14 billion was forgiven today by the United States government,” Egeh stated on X, crediting the recent debt relief process and the March Paris Club agreement for supporting this move toward debt cancellation.

Egeh expressed his appreciation, noting, “I thank the U.S. government and people for their unwavering support of our economic reforms and growth.”

The US ambassador to Somalia Riley said the debt forgiveness builds on the U.S.'s broader contributions to Somalia, which also include $1.2 billion in development, economic, security, and humanitarian assistance for the current fiscal year. “The United States continues to be a steadfast partner in support of the people of Somalia,” Riley said.

In December 2023, Somalia secured $4.5 billion in debt relief, reaching the Completion Point under the World Bank and IMF's Heavily Indebted Poor Countries Initiative, which aims to bring debt to sustainable levels.

The US is a major security and development stakeholder of the country, having invested in the training and equipping of the Somali National Army. In 2021, Trump ordered the withdrawal of American troops from Somalia and it's not immediately clear if he would authorize such a move when he resumes office in 2025.

GAROWE ONLINE