• IMF approves $30M for Somalia under ongoing reform program
• Funds support post-HIPC strategy, stability, and institutional growth
• Somalia seeks extra $40M amid aid decline, slower GDP outlook
  

Somalia is set to receive $30 million from the International Monetary Fund (IMF) after the IMF Executive Board approved the latest reviews of the country’s reform program, according to Ran Bi, the Fund’s Mission Chief for Somalia.

The IMF said on Sunday, October 12, 2025, that it had reached a staff-level agreement with Somali authorities after completing a review of the program backed by the Extended Credit Facility (ECF).

The financing forms part of the IMF-supported reform program and aims to help implement the government’s post-Heavily Indebted Poor Countries (HIPC) strategy by strengthening key economic institutions and promoting macroeconomic stability and growth, in line with the national development plan and long-term vision.

During the program review, the IMF also considered Somalia’s request for an additional $40 million to offset declining foreign aid and support economic reforms. If approved, the funds would be disbursed in two equal tranches following the fourth and fifth reviews of the agreement.

The economy remains relatively stable, though risks persist. After a robust growth of 4.1% in 2024, the outlook for 2025-2026 has weakened due to lower foreign aid and climate-related shocks. Real GDP growth is now projected at 3% in 2025 and 3.3% in 2026.

The IMF said that despite recent progress, continued reform efforts and strong international support remain essential to sustain momentum and secure Somalia’s long-term economic stability.

Ingrid Haffiny