The African Development Bank Group (AfDB) has granted nearly 18 million US dollars in additional debt relief to Somalia, according to an announcement made on 4 December 2025.
The approval clears the path for the full cancellation of all African Development Fund loans owed by Somalia for the period 2024–2039.
The decision reflects Somalia’s notable strides in macroeconomic reforms, governance, domestic revenue mobilisation, and public financial management. AfDB Lead Operations Advisor for Somalia, Bubacarr Sankareh, said the relief would strengthen national institutions and improve services across key sectors such as education, health, agriculture, and local markets.
The Bank noted that Somalia has met its poverty reduction obligations by enhancing basic service delivery and broadening safety nets for vulnerable households. Through the completion of the Enhanced Heavily Indebted Poor Countries Initiative, Somalia’s external debt will be reduced by 17.68 million US dollars.
The Government is expected to channel the freed-up resources into public services, infrastructure rehabilitation, water access, teacher recruitment, and the restoration of health systems, particularly in drought and conflict-affected regions. The package is also anticipated to boost Somalia’s creditworthiness, rebuild confidence among development partners, and open access to concessional financing to support long-term reconstruction.