The Executive Board on December 8 2025, endorsed an augmentation of the programme by $40 million, enabling the immediate release of $30 million for budget support. This brings Somalia’s total disbursements under the arrangement to $100 million.
Somalia’s ECF arrangement, first approved on December 19 2023, underpins the government’s post-Heavily Indebted Poor Countries reform strategy that aims to strengthen core economic institutions and support macroeconomic stability and growth. The programme is aligned with the National Transformation Plan and the Centennial Vision 2060.
According to Deputy Managing Director and Chairperson Nigel Clarke, Somalia has maintained strong performance under the Fund-supported arrangement despite mounting domestic and international pressures.
Persistent reductions in foreign aid, repeated climate shocks and elevated uncertainty continue to weigh heavily on public finances and economic prospects. These challenges highlight the need for continued sound policies, strengthened reforms and accelerated domestic revenue mobilisation to enable increased priority spending, particularly on social programmes.
The Somali authorities plan to expand social spending in 2026 using domestic resources for the first time, a move the IMF has described as an important initial step. The Fund also noted that sustained support from development partners will be critical to Somalia’s long-term reform agenda.
Fiscal performance in 2025 remains robust, driven by solid domestic revenue collection, disciplined expenditure and steady progress in key reforms. The Cabinet-approved 2026 budget remains consistent with programme targets by prioritising revenue mobilisation and expenditure restraint while safeguarding essential spending. Ongoing customs modernisation, improved implementation of the Income Tax Law and broader revenue administration reforms are expected to further strengthen state finances.
The IMF highlighted continued improvements at the Central Bank of Somalia, including enhanced regulatory capacity, stronger financial sector oversight and progress toward reintroducing the Somali shilling. Governance reforms, anti-corruption measures and efforts to strengthen climate resilience also remain central to Somalia’s long-term economic transformation.
–IMF/ChannelAfrica–
