Japan Announces $100 Million Debt Forgiveness for Somalia

GOOBJOOG NEWS | MOGADISHU: The federal government of Somalia has announced that it has reached a $100 million debt forgiveness agreement with Japan as part of its ongoing economic reform and debt relief initiatives.

The agreement, signed in Nairobi by Somali Finance Minister Bihi Egeh and Japanese Deputy Head of Mission Ogihara Hiroshi, marks the latest in a series of debt cancellation efforts for Somalia.

Minister Egeh said the agreement follows the successful debt relief process and the Paris Club agreement of March this year, which supported debt cancellation for Somalia.

“Today, I signed the agreement to complete the debt relief process with the representative of the Japanese government. I thank the Japanese government and people for their unwavering support of our economic reforms and growth,” Minister Bihi said.

The Japanese debt forgiveness follows a similar agreement with the United States earlier this week, in which Washington agreed to cancel more than $1 billion owed by Somalia.

These efforts are seen as crucial for one of the world’s poorest nations, which faces ongoing challenges from decades of civil conflict, an insurgency by the al-Qaeda-linked group al-Shabaab, and frequent climate crises.