The World Bank’s Executive Board has approved a second $125 million loan for the corrupt Somalia government to support development policies, provided by the International Development Association (IDA).
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According to a report published by the news website “Larolav”, this new measure is the second and final phase of a program aimed at enhancing Somalia’s economic resilience, supporting sound public financial management, as well as sustainable development for the private sector.
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The first tranche of this loan of the same $125 million was approved in 2024.
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Hideki Matsunaga, World Bank Country Director for Somalia, said that this new loan demonstrates the corrupt Somalia government’s commitment to implementing important institutional reforms, which will help build a stable government and strengthen social contract.
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This investment will focus specifically on, Strengthening the government’s fiscal stability, through increasing tax revenues, and enhancing the efficiency and effectiveness of government spending.
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In the area of private sector development, the program focuses on promoting microfinance, creating an insurance system to protect against drought, and promoting investment in the fisheries sector to increase exports of marine products.
All of these efforts are part of the World Bank’s partnership with Somalia, outlined in the 2024-2028 plan, and are being implemented in collaboration with international development partners.
Also, Reducing dependence on international aid, Investing in renewable energy, to expand access to electricity, with the goal of achieving a total electricity generation capacity of 50 megawatts by the end of 2026.