Somalia has got an unexpected friend -The World Bank –which has backed its fledgling economy on the ground that the country is doing its best to implement a reform agenda. According to the multilateral body, Somalia’s economy is expected to grow for the next three-to-five years, given that the country sustain its current economic reform momentum. Somalia has been in turmoil since 1991. Later, it was hit by famine and sporadic terror attacks from which the country is trying to wriggle out. Yet, it has to cover a lot of ground to unshackle its tied hands.
Now, according to the World Bank, Several indicators over the last 12 months have demonstrated that Somalia is well on its way to recovery from the years of turmoil and economic distress. One such indicator is the buoyancy in the tax collection, which has increased by a meaty 29% last year. Also, the government has changed the tax policy to make it investor-friendly and easy to comply with. In September last year, World Bank approved the first tranche of the loan to Somalia, after a lapse of 30 years or so, US$80 million to fund public finance reforms. Later, in May this year, the International Monetary Fund (IMF) said Somalia’s economy was progressing well: yet warned that it was still vulnerable to fragile security, climate change, and poverty. Significantly, a few months back-November last year- Ethiopian Airlines made its first landing in the Somali capital Mogadishu after 40 years absence. The airline is now expecting to increase the flights to Somalia. Is it a new phase for the rift and debt-ridden economy? Analysts are keeping their fingers crossed but admit in private that many calculations and estimates of the multilateral organizations had gone haywire in the past.
