The World Bank has made two significant moves in the Horn of Africa in the space of one month, first in Ethiopia and now in neighboring Somalia.
In Ethiopia, the global finance lender after 13 years agreed to finally provide direct budgetary support to one of the continent’s fastest growing economies.
Thanks to reforms championed by Prime Minister Abiy Ahmed, Addis Ababa had secured $1 billion in direct budget support. The bank suspended the support after botched polls back in 2005. The funds were very much needed for a country that is suffering acute forex shortages.
In the case of Somalia, The Washington-based lender on Tuesday approved its first loan for Mogadishu, the amount of $80 million was the first disbursement in 30-years.
Watchers say the funds are a needed boost for Somalia’s economic recovery efforts. The loans are primarily to fund public finance reforms.