bidenkulaha
GalYare
In March 2023, the National Consultative Council brought together the FGS, Presidents of four of the five FMS, and the Mayor of Mogadishu. High-level agreements were reached on creating a National Revenue Authority, the assignment of revenue responsibilities across levels of government, the pool of revenues that are to be shared between FGS and FMS, and other institutional arrangements. However, there have been rising political tensions between Puntland State (not in attendance) and the FGS, creating risks for the advancement of political agreements on federalism and implementation of federal fiscal reforms.
4. Despite these challenges, the authorities remain committed to the reform effort and the HIPC Completion Point (CP) appears achievable by 2023Q4. Somalia continues to make progress towards the HIPC CP triggers and reforms under the ECF-supported program. Progress has also been made in debt relief agreements with creditors.
5. Somalia is increasingly integrating with the East African Community (EAC) and the wider world. Somalia is expected to formally join the EAC later this year, following a verification exercise. In February 2023, Mogadishu hosted the Frontline States Summit, attended by presidents of Djibouti, Ethiopia, Kenya, and Somalia. In November 2022, Mogadishu also hosted its first international investment conference, with participation of over 25 investors. The upgrade to Somalia's airspace by the International Civil Aviation Authority in January 2023 signals greater safety and efficiency, which is expected to facilitate an increase in air traffic.
Program performance has been broadly satisfactory. All but one of the quantitative performance criteria (QPCs) and indicative targets (ITs) for end-December 2022 were met
In the IMF and IDA staff’s view, achieving the HIPC CP by 2023Q4 appears feasible. The authorities are making progress on completing HIPC CP triggers (Annex 2). Notable achievements include the recent approval by Parliament of seven key pieces of legislation needed for the HIPC CP (HIPC CP triggers and laws needed for the ECF and World Bank disbursements), including the Electricity Act, the EIIT Law, the Data Protection Law, the Targeted Financial Sanctions Law, the Digital ID System Law, the Investment and Investor Protection Act, and the Federal Law on Fisheries. The authorities reached debt relief agreements with most Paris Club members and the Kuwait Fund for Arab Economic Development. As of end-March 2023, debt relief agreements have been signed with creditors representing 68.4 percent of the NPV of debt after traditional debt relief. The debt reconciliation exercise for the HIPC CP has been launched. The authorities will need to ensure timely completion of the remaining HIPC CP triggers and finalize debt relief agreements with remaining creditors.
4. Despite these challenges, the authorities remain committed to the reform effort and the HIPC Completion Point (CP) appears achievable by 2023Q4. Somalia continues to make progress towards the HIPC CP triggers and reforms under the ECF-supported program. Progress has also been made in debt relief agreements with creditors.
5. Somalia is increasingly integrating with the East African Community (EAC) and the wider world. Somalia is expected to formally join the EAC later this year, following a verification exercise. In February 2023, Mogadishu hosted the Frontline States Summit, attended by presidents of Djibouti, Ethiopia, Kenya, and Somalia. In November 2022, Mogadishu also hosted its first international investment conference, with participation of over 25 investors. The upgrade to Somalia's airspace by the International Civil Aviation Authority in January 2023 signals greater safety and efficiency, which is expected to facilitate an increase in air traffic.
Program performance has been broadly satisfactory. All but one of the quantitative performance criteria (QPCs) and indicative targets (ITs) for end-December 2022 were met
In the IMF and IDA staff’s view, achieving the HIPC CP by 2023Q4 appears feasible. The authorities are making progress on completing HIPC CP triggers (Annex 2). Notable achievements include the recent approval by Parliament of seven key pieces of legislation needed for the HIPC CP (HIPC CP triggers and laws needed for the ECF and World Bank disbursements), including the Electricity Act, the EIIT Law, the Data Protection Law, the Targeted Financial Sanctions Law, the Digital ID System Law, the Investment and Investor Protection Act, and the Federal Law on Fisheries. The authorities reached debt relief agreements with most Paris Club members and the Kuwait Fund for Arab Economic Development. As of end-March 2023, debt relief agreements have been signed with creditors representing 68.4 percent of the NPV of debt after traditional debt relief. The debt reconciliation exercise for the HIPC CP has been launched. The authorities will need to ensure timely completion of the remaining HIPC CP triggers and finalize debt relief agreements with remaining creditors.
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