Saudi Arabia to support budget and to invest US$ 50m
Somalia received a pledge of aid for US$ 50m from Saudi Arabia this month on the same day it announced it was cutting ties with Saudi rival Iran. The government, which did not confirm or deny the pledge, has said there was no link between long-running Saudi financial support and its diplomatic decision to break ties with Iran. The Saudi Foreign Ministry did not respond to requests for comment. But diplomats said it was the latest sign of patronage used by the kingdom to shore up regional support against Iran, a rivalry that deepened this month when Sunni majority Saudi Arabia executed a Shi’ite cleric and Iranian protesters responded by torching the Saudi embassy in Tehran.
“The Saudis currently manage to rally countries behind them b…
Debt Relief in sight, courtesy of IMF
The International Monetary Fund (IMF) will offer Somalia technical support and advice, which can be seen as a first step in efforts to make debt relief possible for the country emerging from two decades of civil conflict, the central bank governor said yesterday. The IMF officially recognised the Somali government in April, ending a 22-year hiatus during which the African nation was mired in grinding poverty, militancy and maritime piracy, without a functioning central government. Technical help will focus on the basics: Helping the authorities manage a budget, licence commercial banks and compile rudimentary economic data in a country consistently ranked among the world’s most corrupt. The Central Bank of Somalia this month published it…
Corporate Investors have an Eye on Somalia
East African firms said on Wednesday Somalia was an increasingly enticing market as it strives to cement security gains against al Qaeda-linked insurgents and spur an economic recovery. The Horn of Africa country needs rebuilding from scratch. Just 10% of its roads are paved while 95% of the country’s 10 million people have no electricity. In the capital, Mogadishu, mushrooming construction sites, solar-powered street lamps and beach front cafes point to a delicate rebound, albeit one largely confined to the city. “Somalia is a fantastic prospect,” Prasad Karey, head of sales and marketing at Kenya-based Athi River Steel Plant, said. Such a view would have been unthinkable barely two years ago when al Shabaab rebels still held bases acro…
Somalia recognised by IMF
The International Monetary Fund officially recognised the Somali government on Friday, ending a 22-year hiatus and allowing the Fund to provide economic policy advice to Somalia. The move opens the way for donors and other development banks to resume relations with Somalia, whose economy is in tatters after more than two decades of conflict. Donors are expected to meet officials from the World Bank and International Monetary Fund during meetings of world finance leaders in Washington next week.