In a milestone for Somalia’s economic recovery, France officially canceled $145.6 million of Somalia’s debt in a formal agreement signed today in Nairobi. The agreement was inked by Somalia’s Minister of Finance, Bihi Egeh, and the French Ambassador to Somalia and Kenya, Arnaud Suquet.
This debt cancellation follows the successful negotiations at the Paris Club earlier this year in March, where member countries agreed to provide Somalia with debt relief to aid its recovery and development.
“This agreement reaffirms France’s commitment to supporting Somalia in its economic reform journey and addressing its financial challenges,” Ambassador Suquet stated.
Minister Egeh expressed gratitude for France’s support, highlighting that the relief would enable Somalia to allocate more resources toward critical priorities, such as rebuilding infrastructure, enhancing public services, and strengthening institutions.
The Paris Club initiative, of which this cancellation is a part, has been instrumental in helping Somalia achieve greater fiscal sustainability. The club’s negotiations aim to alleviate Somalia’s long-standing debt burden, which has hindered its economic progress following decades of conflict and instability.
France’s gesture signals growing international confidence in Somalia’s economic reforms, which have been lauded for their focus on fiscal discipline and transparency.
Somalia’s government expressed that it remains committed to fulfilling its reform commitments under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative, paving the way for additional debt forgiveness from other creditors in the coming years.
