By Asha Elmi - Reporter
U.S.A., 9 December 2025 – The International Monetary Fund (IMF) Executive Board approved an augmentation of Somalia’s Extended Credit Facility (ECF) program on Monday, providing an additional $40 million and allowing for an immediate disbursement $30 million to support the country’s economic reform agenda.
The decision follows the conclusion of the fourth review of Somalia’s ECF arrangement, initially approved in December 2023, which aims to strengthen key economic institutions, improve governance, and maintain macroeconomic stability under Somalia’s National Transformation Plan and Centennial Vision 2060.
The IMF said Somalia has maintained strong program performance despite domestic and global challenges, including steep cuts in foreign aid, recurrent climate shocks, and wider economic uncertainty. Authorities have also committed to expanding social spending in 2026 using domestic resources to mitigate the impact of declining external aid.
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The Fund highlighted continued progress in domestic revenue collection, public financial management, customs modernization, and tax administration. Somalia’s Central Bank has advanced regulatory reforms, strengthened supervision, and promoted financial inclusion, while preparations continue for the reintroduction of the Somali shilling under a currency board arrangement.
Somalia’s Finance Minister, Bihi ImanEgeh, welcomed the IMF decision on X (formerlyTwitter), saying: “This is a strong recognition of Somalia’s reform progress and commitment to sound economic management.”
The IMF stressed that continued donor support and reforms in governance, transparency, and climate resilience remain critical to sustaining Somalia’s economic recovery.
