Somalia’s Fiscal Journey to Debt Relief
IMF IMF
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 Published On Apr 17, 2024

Somalia has been rebuilding since 2012, following more than 2 decades of devastating conflict. The Heavily Indebted Poor Countries (HIPC) framework provided a path for Somalia to bring external debt to sustainable levels and access new external financing to support economic and social development. As part of the HIPC process and IMF engagement, the authorities advanced substantive public financial management reforms to strengthen government spending capacity and accountability. Since 2013, the Federal Government of Somalia has created efficient and transparent public financial management institutions, showcasing significant achievements such as credible budget preparation, strong internal controls, automated payment processes, and the Invoice Tracking System, all facilitated through the Somalia Financial Management Information System. This talk explores Somalia's remarkable fiscal journey to debt relief—from establishing the basics of cash and manual transactions to building comprehensive legal and institutional frameworks and the ongoing shift towards digital transformation and the exploration of AI.

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