NAIROBI, Kenya – Somalia has taken a significant step towards economic recovery by finalizing a debt relief agreement with France, valued at $145.6 million.
The agreement was ceremonially signed today at the French Embassy in Nairobi by Somalia’s Minister of Finance, Bihi Iman Cige, alongside French Ambassador to Somalia, Arnaud Suquet.
This move comes after Somalia’s successful navigation through the Heavily Indebted Poor Countries (HIPC) Initiative, which was officially completed in 2023, allowing for substantial debt relief from international creditors.
The terms of this latest agreement with France are part of a broader 2024 Paris Club agreement, which has seen various creditor nations agree to cancel or restructure Somalia’s debt.
Minister Cige highlighted the importance of this deal, stating, “This agreement not only alleviates immediate financial pressures but also signifies a vote of confidence from our international partners in Somalia’s economic governance and reform efforts.” He extended his heartfelt thanks to the French government and its people, acknowledging their enduring support for Somalia’s development.
The signing in Nairobi marks a pivotal moment as Somalia continues to work towards economic stability and growth, aiming to clear its path from past financial burdens to focus on future development.
This debt relief is expected to provide Somalia with more fiscal space to invest in critical sectors such as health, education, and infrastructure, essential for sustainable growth.
The event was also attended by key diplomatic figures, including the Somali Ambassador to Kenya, Gabriel Ibrahim Abdulle, underscoring the collaborative spirit between Somalia and its international partners.
This financial relief is part of Somalia’s broader strategy to achieve full debt forgiveness by the end of the current decade, a goal that has been supported by international institutions like the IMF and World Bank, which have been instrumental in guiding Somalia through the HIPC process.
