<\/p>\n

The World Bank has made two significant moves in the Horn of Africa in the space of one month, first in Ethiopia and now in neighbouring Somalia.<\/p>\n

In Ethiopia, the global finance lender after 13 years agreed to finally provide direct budgetary support to one of the continent\u2019s fastest-growing economies.<\/p>\n

Thanks to reforms championed by Prime Minister Abiy Ahmed, Addis Ababa had secured $1 billion in direct budget support. The bank suspended the support in 2005. The funds were very much needed for a country that is suffering from forex shortages.<\/p>\n

In the case of Somalia, The Washington-based lender on Tuesday approved its first loan for Mogadishu, the amount of $80 million was the first disbursement in 30-years.<\/p>\n

Watchers say the funds are a needed boost for Somalia\u2019s economic recovery efforts. The loans are primarily to fund public finance reforms.<\/p>\n

Its board had approved financing of $60 million for the Recurrent Cost and Reform Financing Project and $20 million for the Domestic Revenue and Public Financial Management Capacity Strengthening Project, it said in a statement late on Tuesday.<\/p>\n

\u201cThey (loans) represent a milestone in Somalia\u2019s development and reconstruction,\u201d the bank said.<\/p>\n

The World Bank\u2019s relationship with Somalia has been on and off. They suspended ties with the country when war broke out in 1991, resumed support for Somalia in 2003, at the time saying it would focus on\u00a0HIV<\/span>\/AIDS and livestock programmes with other organisations.<\/p>\n

Somalia\u2019s economy was forecast to grow by an average of between 3.5 and 4.5 per cent annually in 2019-2022, when the partnership on social services will run, the bank said.<\/p>\n

Source: Africanews<\/p>\n","protected":false},"excerpt":{"rendered":"

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