Somalia Firms Up Ties with Trade and Finance Organisations to Power Economic Recovery

After a series of international debt cancellations, Somalia, which has Africa’s longest coastline, is now in a race to expand its economic integration with neighbouring countries and beyond.

Since gaining membership in the East African Community in November 2023, Somalia has been actively seeking positions in regional, global trade organisations and in development finance institutions. This includes membership of Africa’s import-export bank.

These strategic relationships offer new opportunities for intra-African and global trade, benefiting Somalia’s highly entrepreneurial community and aiding the country’s economic recovery after more than 30 years of government collapse, fuelled by civil wars.

Speaking about the country’s deal with the Afreximbank, Somalia’s State Minister of the Office of the Prime Minister, Hirsi Jama Ganni, said the deal would make the country a key developmental player in the region.

“This milestone agreement signals our commitment to becoming a key player in regional and continental development, especially through trade, and under the framework of the African Continental Free Trade Area (AfCFTA),” he said.

“This partnership is significant to Somalia’s ongoing reconstruction and economic diversification efforts, opening doors for financial and technical support.”

Afreximbank President and Chairman of the Board of Directors, Benedict Oramah, described Somalia’s membership as a significant milestone, positioning the country on a path toward sustainable economic transformation, enhancing its trade and industrial infrastructure.

The step, he said, would help Somalia achieve continental integration and self-reliance through the African Continental Free Trade Area (AfCFTA).

“This is a significant milestone as it widens the opportunity for the Somali public and private sectors to access financing and other related interventions that address their real needs,” said Oramah.

In February, Somalia began the journey toward World Trade Organisation (WTO) accession, a step the country deems vital to achieving sustainable economic growth, attracting investment, and creating meaningful opportunities.

Somalia’s Deputy Prime Minister Salah Ahmed Jama, who led a high-level delegation in Geneva in February, said the country was dedicated to aligning its trade policies with global standards, enhancing institutional capacity, and ensuring that its economic transformation is inclusive and equitable.

“For us, trade and membership in regional, sub-regional and global trading arrangements is a top priority,” he said.

In its newly launched five-year National Transformation Plan (NTP) for 2025-2029, Somalia is pushing a ‘strategic shift from traditional development to large-scale national transformation’ to accelerate development.

“The NTP is not just a plan — it is a commitment to real and meaningful change. It reflects the aspirations of the Somali people and lays the foundation for a resilient, prosperous, and self-reliant Somalia,” said Somalia Minister of Planning, Investment, and Economic Development, Mohamud Farah, in a statement.

The roadmap targets key sectors such as agriculture, fisheries, energy, education, healthcare, and logistics.

“Attracting investment remains a cornerstone of this strategy. Through a Call for Projects, we aim to engage global partners and local businesses to drive high-impact investments into Somalia,” it reads.

Somalia’s primary economic activities are livestock and agriculture, while its vast coastline also offers huge opportunities in the blue economy.

Agriculture remains the backbone of Somalia’s economy, contributing 65% of GDP and accounting for 75% of the country’s exports.

Over the last two years, several countries and global development financiers have announced the cancellation of Somalia’s debts, allowing the country to reallocate resources toward development priorities such as infrastructure, education, and healthcare.

Countries that have announced debt cancellations include the United States (US$1.14 billion), France (US$145.6 million), Japan (US$100 million), and Russia (US$48.1 million).

The largest portion of debt cancelled was with the International Monetary Fund (IMF) and the World Bank, which approved US$4.5 billion in 2023 under the Heavily Indebted Poor Countries (HIPC) initiative.