Somalia has resumed ties with the African Development Bank (AfDB) with the signing of an agreement to donate $2 million for financial assistance and technical management of public finances.
The support to the Transitional Federal Government of Somalia, after decades of hiatus, comes from the Fragile States Facility (FSF), administered by the Bank’s Fragile States Unit, an AfDB’s memo on the economy copied to APA in Dakar said.
The donation will also help countries establish transparent and sound public financial management systems and develop an appropriate legal framework for fiscal and monetary institutions as well as for human and institutional capacities.
“The Bank commended the Somali government for securing the location of all government institutions in Mogadishu, developing a national plan and establishing a functional central bank and a commission to fight against corruption,” AfDB country director for Somalia, Nono Matondo Fundani, said.
The AfDB, Matondo-Fundani said, also hailed the efforts by the Somali government to normalize the security situation in the country.
We’ve been an active member of the African Development Bank in the past, and we are delighted to resume business relations with the Bank, a Somali senior official said.
Mogadishu is determined to use “wisely” the gift of 2 million dollars to strengthen its financial sector, showing thus that the government remains “committed to transparency and accountability.”
The Bank is committed to assisting the government in the reappointment process, said the Bank’s head of the Fragile States Unit, Mrs. Margaret Kilo, adding that “the signing ceremony is a breakthrough and a first step towards Somalia’s re-engagement with the Bank, nearly two decades later.”
Sanctioned in the early 90s by the Bank Group over arrears on the repayment of its loans, Somalia falls into the category of Least developed countries (LDCs) and remains one of the world’s ten poorest countries with 60% of its economy based on agriculture.
Source African Press Agency
