The World Bank has on Wednesday approved a $55 million International Development Assistance (IDA) grant to support Somalia’s economic recovery through continued fiscal and other economic policy reforms.
The bank said policies will strengthen fiscal management and promote inclusive private sector-led growth.
Somali Finance Minister Dr. Abdirahman Duale Beyle who thanked the bank for the support said the funds will help his government expand cash transfer to vulnerable families during hash economic impact resulted by COVID – 19.
“Our revised budget expands cash transfers to vulnerable households and provides a substantial increase in grants to subnational governments to help them respond to the pandemic in the face of declining revenue,” said Dr. Abdirahman Beileh, Minister of Finance.
On his part World Bank Country Manager for Somalia, Hugh Riddell said the new assistance will help strengthen Somali institutions in responding to climate change challenges related to flooding and locust invasion.
“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,” said Hugh Riddell, World Bank Country Manager for Somalia.
The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.