On Thursday, the Minister of Finance of the Federal Government of Somalia, Bihi Iman Cige, and the Japanese Ambassador to Kenya, Mr. OGIHARA Hiroshi, signed an agreement with the Japanese government to relieve Somalia of ¥14 billion in Japanese yen, which is equivalent to about $90 million in US dollars.
This agreement follows the completion of the debt relief process for each country in Somalia. This decision was made by the countries that joined the Paris Club in early March 2024.
During the signing ceremony, the Minister of Finance, Bihi Iman, expressed his gratitude to the Japanese people and government for this generous act of debt relief. The minister stated that this is an encouragement to the Somali government, which is making a strong effort to reform its finances and increase revenue to achieve economic self-sufficiency.
The Japanese government’s ambassador, who spoke at the event, promised that his government will continue to work with the Somali government and support the development projects carried out in Somalia.
Somalia has a total debt of $4.5 billion, which is generally being relieved under the Heavily Indebted Poor Countries (HIPC) initiative for countries with high levels of debt. Earlier this week, the United States government also relieved Somalia of a debt of $1.14 billion.
This debt relief from Japan and the United States is a significant step forward for Somalia’s economic recovery and development, as it will free up resources for the government to invest in critical infrastructure and social services.
