Accessibility links

Breaking News

IMF: Somalia's Efforts at Rebuilding its Economy ‘Bearing Fruit’

FILE - A customer of Dahabshiil, a Somali remittance company, exchanges U.S. dollars for Somali shillings outside the company's headquarters in Mogadishu, Somalia.

The International Monetary Fund says Somalia has marked a milestone in its development by taking steps to normalize relations with international financial institutions.

The IMF said Wednesday that a mission led by Rogerio Zandamela met with Somali authorities in Nairobi from March 30 to April 5 to discuss a staff-monitored program that will focus on policies to improve governance and fiscal management and foster development in the financial sector.

Staff-monitored programs are informal agreements between a government and the IMF to monitor the implementation of the country's economic program.

Zandamela said after the meetings that Somalia's efforts to rebuild the state and its social and economic infrastructure are "bearing fruit," with growth for 2015 estimated at 3.7 percent. But he said insecurity and war-induced destruction continue to take a toll on revenue collection and delivery of services to the general public.

Zandamela said the IMF's staff-monitored program would aim to initiate comprehensive currency reforms to enhance transparency accountability of government operations, as well as strengthen supervision and regulation of commercial banks.

But the establishment of such a program is not yet a certainty. Zandamela said a proposal for the mission will be submitted to IMF authorities for consideration later this month or in May.