UK announces full debt cancellation for Somalia, boosting economic growth

UK announces full debt cancellation for Somalia, boosting economic growth

Source: Hiiraan Online, Wednesday April 10, 2024

2024-04-09, British Embassy Mogadishu, Somalia- The United Kingdom has fully cancelled Somalia’s historic debt through the completion of the HIPC Initiative, which aims to assist the Horn of the African country in attracting investment, fostering economic growth, and building a secure and stable Somalia.

Deputy Ambassador Sam Thomas made the announcement during his meeting with Minister of Finance Bihi Iman Egeh in Mogadishu on Tuesday.

“Today I confirmed to Finance Minister Bihi that the UK has cancelled 100% of Somalia’s historic debts. As Somalia’s debt relief champion, we are committed to helping attract investment and grow the Somali economy,” the UK embassy in Mogadishu posted on its X (formerly Twitter).

The Minister of Finance described the decision as remarkable and building on the progress made during last month’s Paris Club discussions.

Last month, Paris Club, a collection of some of the world’s wealthiest creditor nations, canceled 99% of Somalia’s debt, a major boost as the country continues its fragile economic recovery from an ongoing three-decade conflict.

In a statement released by the Paris Club, which is run by senior officials from the French Treasury, Somalia’s creditors, including the US, UK, Russia, Norway, and Japan, announced the cancellation of $2bn owed to club members as of January 2023.