The fund, according to the international lender, is the second in a series of two loans that are assisting the nation in moving closer to becoming eligible for complete and permanent debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.
In line with the ninth National Development Plan, which outlines numerous priority areas for moving the country forward and some of which are supported by this Development Policy Financing (DPF), it was stated that the government is putting into action an ambitious reform program to create institutions, draw investments, and achieve inclusive economic growth and job creation.
According to a statement from Kristina Svensson, the World Bank’s country manager for Somalia, the DPF supports the government’s efforts to provide the groundwork for a modern economy with improved institutions.
“It also signals the significant progress Somalia has made in terms of institution-building and economic development, paving the way for a more stable and sustainable future,” Svensson continued.
The World Bank notes that Somalia has enacted new legislation that creates the institutional framework necessary for developing high-potential economic development sectors in critical industries including energy and fisheries.
A new investor protection and investment law was passed to help these industries raise the vital private money they require to grow. “Despite multiple shocks, Somalia is maintaining macroeconomic stability. These institution-building reforms take Somalia closer toward the goal of attaining debt relief, which will wipe away the legacy of loans contracted during the pre-civil war era, thereby turning a new page in the country’s development trajectory,” the global lender noted.
Along with data privacy legislation that offers protections on the use of personal data to assist in boosting access to financing, a digital identity law that can promote stronger know-your-customer standards was also enacted, according to the World Bank.
The DPF, in accordance with the World Bank, supports the fundamentals of unified customs regimes throughout Somalia, which may foster collaboration, boost commerce, improve revenues, and streamline procedures for the private sector.
Business insider Africa.