How has Somalia got rid of its debts?
Debt accounted for 64% of Somalia鈥檚 GDP 5 years ago. Now that鈥檚 down to 6%. And last week it had $4.5 billion worth of its debts written off.
Imagine paying off someone else鈥檚 debts from 30 years ago. That鈥檚 what the Somali government has been having to do, as it tried to pay off debts built up by governments in the 1990s.
Five years ago Somalia was using 64% of its Gross Domestic Product 鈥� the value of all the goods and services it produces 鈥� to pay off foreign debts. Now it鈥檚 only using 6%.
It鈥檚 come after a process of painful economic reforms 鈥� supported by the IMF and World Bank 鈥� which culminated in it having $4.5 billion worth of debts written off last week.
For Africa Daily, Mpho Lakaje speaks to Dr Hodan Osman, Senior Advisor & National Coordinator of Human Capital Development, in the Office of the Prime Minister of the Federal Republic of Somalia, and to Laura Jaramillo, who led the IMF teams in talks with the Somali government.
Podcast
-
![]()
Africa Daily
One question to wake up to every weekday morning. One story from Africa, for Africa
