The Executive Board of the International Monetary Fund (IMF) has approved a $40 million increase in Somalia’s emergency financing program, enabling the immediate release of $30 million in budget support.
This decision brings the total amount of financing available to Somalia under this program to $100 million.
Somalia’s ECF program, first approved on December 19, 2023, is the foundation of the government’s fiscal reform strategy, which aims to strengthen basic economic institutions and support stability and growth. The program is aligned with the National Transformation Plan and the Centennial Vision 2060.
IMF Deputy Managing Director and Acting President Nigel Clarke said Somalia has achieved a strong performance, despite increased domestic and external pressures.
The steady decline in foreign aid, frequent weather disasters, and high uncertainty continue to weigh on the government’s budget and economic forecasts.
The IMF said the challenges highlight the importance of prudent policymaking, deep reforms, and increased domestic revenue to sustain priority spending, especially social spending.
The Somali government plans to increase social spending in 2026 using domestic resources for the first time, which the IMF described as a historic achievement.
Fiscal performance in 2025 remains strong, driven by rising domestic revenue, systematic expenditure control, and continued progress on key reforms.
The 2026 budget approved by the Council of Ministers is broadly in line with the program’s objectives, with a focus on increasing revenue, containing expenditures, and maintaining basic services.
Reforms such as customs modernization, implementing the Income Tax Law, and improving public financial management remain central to continued progress.
