Mogadishu (KAAB TV) – The International Monetary Fund (IMF) has issued a warning that the ongoing reduction in international aid to Somalia could result in serious economic consequences. These include rising poverty levels, worsening food insecurity, slower social development, and obstacles to building effective government institutions.
“The continued support of international partners—particularly amid high uncertainty and clear economic risks—is crucial for the successful implementation of Somalia’s government policies,” the IMF stated.
According to a newly released IMF report, Somalia’s economic outlook for 2025 remains highly uncertain. This is attributed to both the declining levels of foreign aid and irregular rainfall patterns.
In a more positive development, the IMF announced that it has reached a staff-level agreement with Somali authorities on the third review of the Extended Credit Facility (ECF) program. This agreement paves the way for the potential disbursement of $10 million, pending approval by the IMF Executive Board.
The IMF also noted that while Somalia is making progress on financial reforms, the pace remains slow. The agency emphasized the importance of accelerating efforts to build an efficient financial system, which is vital for economic stabilization and long-term growth.