NAIROBI– In a landmark week for Somalia’s financial recovery, Somalia’s Finance Minister, Bihi Egeh, and Japan’s Ambassador to Kenya, Ogihara Hiroshi, signed an agreement in Nairobi on Thursday, under which the Japanese government forgave a debt signaling to 14 billion Japanese yen—equivalent to over one hundred million U.S. dollars.
This agreement marks the successful completion of a vital debt relief process and represents a significant milestone in Somalia’s ongoing efforts to rebuild its economy after decades of civil war and turmoil.
Minister Bihi expressed deep gratitude to the Japanese government and its people for their unwavering support in fostering Somalia’s economic growth.
“This debt relief is a crucial step in our financial recovery, and we are thankful for Japan’s continued commitment to Somalia’s development,” said Minister Bihi in a statement following the signing ceremony.
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This latest agreement follows the Paris Club agreement reached in March this year, which played a key role in facilitating debt cancellations for Somalia.
The combination of debt relief agreements with Japan and other international partners underscores Somalia’s successful efforts to stabilize its economy and improve its financial standing.
Earlier in the week, Minister Bihi Egeh and U.S. Ambassador to Somalia, Ambassador Riley, also signed a bilateral agreement that forgives Somalia’s $1.14 billion debt to the United States.
This $1.14 billion in debt relief is in addition to the $1.2 billion in development, economic, security, and humanitarian assistance the U.S. has provided to Somalia this fiscal year, highlighting America’s steadfast commitment to supporting Somalia.
Ambassador Riley and Minister of Finance, Bihi Egeh, signed a bilateral agreement that forgives Somalia’s $1.14 billion debt to the United States.
This $1.1 billion in debt relief is in addition to the $1.2 billion of development, economic, security, and humanitarian… pic.twitter.com/fmKyfZSSCC
— U.S. Embassy Mogadishu, Somalia (@US2SOMALIA) November 5, 2024
Ambassador Riley reaffirmed the United States’ support, saying, “The United States continues to be a steadfast partner in Somalia’s recovery, helping the Somali people build a more stable, secure, and prosperous future.”
Somalia Finance Minister Bihi Egeh (Right ) with US Ambasador to Somalia Rilley when they signed bilateral agreements. Photo/Courtesy
Both the Japanese and U.S. debt forgiveness agreements reflect international confidence in Somalia’s path toward financial recovery and stability.
As the Horn of Africa nation continues to recover from years of conflict, these significant debt cancellations provide the government with more resources to invest in critical sectors, including infrastructure, education, and healthcare.
The successful completion of these debt relief agreements is a powerful signal that Somalia is making real progress in its economic and financial recovery efforts, offering hope for a brighter future after decades of instability.
