Thursday November 7, 2024
Nairobi (HOL) — Somalia’s government announced Thursday that it had reached a debt forgiveness agreement totalling $100 million with Japan as part of its ongoing economic reform and debt relief initiatives.
The agreement, signed in Nairobi by Somali Finance Minister Bihi Egeh and Japanese Deputy Head of Mission Ogihara Hiroshi, marks the latest in a series of debt cancellation efforts for Somalia.
“Today, I signed the agreement to complete the debt relief process with the representative of the Japanese government, Mr. Ogihara Hiroshi,” Minister Egeh said.
The new accord follows Somalia’s successful debt relief process with the Paris Club, finalized in March this year. Minister Egeh expressed gratitude to Japan, stating, “I thank the Japanese government and people for their unwavering support of our economic reforms and growth.”
The Japanese debt forgiveness follows a similar agreement with the United States earlier this week, in which Washington agreed to cancel more than $1 billion owed by Somalia.
These efforts are seen as crucial for one of the world’s poorest nations, which faces ongoing challenges from decades of civil conflict, an insurgency by the al-Qaeda-linked group al-Shabaab, and frequent climate crises.