CBS Economic Annual Conference Overview
Somalia’s transition into the post-Heavily Indebted Poor Countries (post-HIPC) era marks a historic turning point in its economic recovery and long-term development trajectory. After decades of conflict, institutional collapse, and isolation from the global economy, Somalia has successfully reduced its external public debt from over 64% of GDP in 2018 to less than 6% by the end of 2023.
This was not merely a result of debt forgiveness; it reflected years of determined reform, guided by the Federal Government of Somalia (FGS) and supported by development partners, underpinned by strong performance through the IMF’s Extended Credit Facility (ECF) from 2020 to 2023.
The attainment of the HIPC Completion Point represents a major milestone, but it is not the destination. It opens the door to a new chapter focused on sustaining debt sustainability, rebuilding economic institutions, expanding domestic revenue, and accelerating inclusive growth.
Somalia’s admission into the East African Community (EAC) as the 8th partner state in March 2024 marks another defining step. This integration offers opportunities for trade expansion, investment, and deeper regional cooperation, but also requires policy alignment and structural reforms.
The Central Bank of Somalia is advancing monetary sovereignty through the reintroduction of the Somali Shilling under a Currency Board Arrangement (CBA), strengthening monetary stability and public trust.
Meanwhile, the Ministry of Finance is enhancing domestic revenue mobilization through digitalized sales tax collection to improve transparency and efficiency.
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