Celebrate, debt relief was collective effort by all leaders, says Somalia president

MOGADISHU, Somalia - It took collaborative effort from leaders across the political divide to achieve debt relief which would see the country getting back on the right trajectory in terms of reforms and development, President Hassan Sheikh has said, while recalling the tough political landscape in the country.

Just after the security $4.5 million debt relief, Hassan Sheikh Mohamud acknowledged that leadership throughout Somalia’s government cycles invested heavily in ensuring the Completion Point for HIPC was secured for this milestone.

"Somalia’s debt relief journey was no simple task; it took nearly a decade, three different administrations, two presidents and four finance ministers to attain debt relief from the boards of the World Bank and IMF on 13 December," he said while lauding International Monetary Fund [IMF] and World Bank.

"Ironically, in Somalia’s highly active and competitive political landscape, achieving debt relief was one of the key unifiers of political actors of all persuasions," he added. "Furthermore, the process ensured there was a systematic review by the Somali government and people of their own economic history, fiscal borrowing and the socioeconomic destruction of almost three decades of civil war."

Earlier, former President Mohamed Farmaajo who led Somalia to the Decision Point under the Heavily Indebted Poor Countries [HIPC] welcomed the announcement, noting the debt relief milestone was ‘a cross-government effort spread over three Somali administrations.’

Farmajo, who lost to Hassan Sheikh in hotly contested 2022 called for strong parliamentary oversight in future contracting, adding, “We must borrow for nationally agreed investment and not government operational costs.” He had defeated Hassan Sheikh in the 2017 polls.

On his part, ex-Finance Minister Bihi Egeh said robust reforms in all sectors had delivered the much-awaited debt relief. He asked the government to build on the latest successes to help Somalia recover economically after years of debt distress.

“Through our enabling reforms, we have consistently raised domestic revenue, strengthened public financial management, improved good governance and central banking operations, and enhanced the capacity of our national institutions. We will build on these successes going forward,” Egeh said.

GAROWE ONLINE