The World Bank Board has approved a $55 million International Development Assistance (IDA) grant for Somalia to fast track economic recovery and policy reforms.

“The budget support will help protect lives and livelihoods and strengthen the capacity of Somali institutions to respond to the triple crisis of the Covid-19 pandemic, locust invasion and flooding that threatens to derail Somalia’s reform programme and its emergence from fragility,” said World Bank country manager for Somalia Hugh Riddell.

The World Bank and the International Monetary Fund approved Somalia’s eligibility for the Heavily Indebted Poor Countries (HIPC) initiative on March 25, removing the constraints on economic growth and poverty reduction and providing access to IDA instruments.

The World Bank’s monetary aid implementation of reform programme supported by development policy financing will also support for Somalia’s revised 2020 budget.

The Somalia re-engagement and reform supplemental Development Policy Financing is one component of the World Bank Group’s comprehensive response to the multiple crises Somalia is facing.