Africa Daily How has Somalia got rid of its debts?
Imagine paying off someone else’s debts from 30 years ago. That’s what the Somali government has been having to do, as it tried to pay off debts built up by governments in the 1990s.
Five years ago Somalia was using 64% of its Gross Domestic Product – the value of all the goods and services it produces – to pay off foreign debts. Now it’s only using 6%.
It’s come after a process of painful economic reforms – supported by the IMF and World Bank – which culminated in it having $4.5 billion worth of debts written off last week.
For Africa Daily, Mpho Lakaje speaks to Dr Hodan Osman, Senior Advisor & National Coordinator of Human Capital Development, in the Office of the Prime Minister of the Federal Republic of Somalia, and to Laura Jaramillo, who led the IMF teams in talks with the Somali government.