By Asma Abdullahi - Reporter
Spain, July 14 2026 – Somalia and Spain on Monday signed a debt-for-development agreement to convert debt relief into financing for development projects, the Somali Ministry of Finance said.
The agreements were signed in Madrid and are intended to support projects that improve public services, promote economic growth and contribute to Somalia’s sustainable development goals.
Somalia was represented at the signing ceremony by Suleyman Sheikh Omar, Director General of the Ministry of Finance, who thanked the Spanish government and development partners for supporting the agreement.
According to the Somali government, the arrangement will allow funds that would otherwise have been used for debt servicing to be redirected towards priority projects, particularly those focused on social services and long-term economic development.
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The Somali government did not disclose the value of the debt covered by the agreement, the projects that would receive funding or the timetable for implementation.
The accord follows Somalia’s completion of the Heavily Indebted Poor Countries initiative in 2023, which substantially reduced the country’s external debt burden and restored access to international financing.
Spain has also promoted debt-for-development swaps internationally and has worked with the World Bank on mechanisms intended to help governments redirect debt repayments towards development programmes.
Officials said the latest agreement was expected to strengthen economic cooperation between Somalia and Spain while directing financial resources towards projects intended to improve public services and living standards.