The Somali government has announced a historic debt forgiveness agreement with France, amounting to $145.6 million. This move marks a significant milestone in Somalia’s ongoing efforts to implement economic reforms and secure debt relief.
The agreement was finalized on Monday and signed by Somalia’s Finance Minister, Bihi Egeh, and French Ambassador to Kenya and Somalia, Arnaud Suquet.
“Today, we finalized the debt relief process with the Government of France totaling $145.6 million,” Minister Egeh stated. He noted that the agreement follows Somalia’s successful completion of the Heavily Indebted Poor Countries (HIPC) Initiative in 2023 and the Paris Club agreement earlier this year.
The minister expressed gratitude to France, highlighting the nation’s support as pivotal in advancing Somalia’s financial stability and development goals.
France joins a growing list of countries, including Denmark, Japan, and the United States, that have recently forgiven Somali debts. These developments are part of a broader initiative overseen by the International Monetary Fund (IMF) and the World Bank.
As a result of these efforts, Somalia has become eligible for over $4.5 billion in debt relief, significantly reducing its financial burdens. This achievement represents a critical step in Somalia’s journey toward restoring fiscal health and fostering long-term economic growth.
Debt relief is expected to strengthen Somalia’s ability to focus on essential development initiatives, such as infrastructure, healthcare, and education. By alleviating the debt burden, Somalia can channel resources toward sustainable growth, financial resilience, and improved living standards for its citizens.
This agreement with France underscores the importance of international cooperation in supporting nations emerging from financial crises, while reinforcing Somalia’s commitment to economic reform and global partnerships.
