The World Bank has approved a $55 million dollar grant to support Somalia’s economic recovery through continued fiscal and other economic policy reforms.
Hugh Riddell, World Bank country manager for Somalia, said the policies will strengthen fiscal management and promote inclusive private sector-led growth.
“The budget support will help protect lives and livelihoods and strengthen the capacity of Somali institutions to respond to the triple crisis of COVID-19 pandemic, locust invasion and flooding that threatens to derail Somalia’s reform program and its emergence from fragility,” Riddell said in a statement issued on Wednesday.
Somali finance minister Abdirahman Beileh said the revised budget expands cash transfers to vulnerable households and provides a substantial increase in grants to sub-national governments to help them respond to the pandemic in the face of declining revenue.
“The supplemental financing will help in plugging our public expenditure gap, given the 29 percent domestic revenue shortfall and 2.5 percent GDP contraction in 2020,” Beileh said.
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