The World Bank has approved $80 million in loans to Somalia to fund public finance reforms, the first loan it has given the country for 30 years.
The lender cut ties with Somalia when conflict broke out in 1991 but resumed support in 2003, even though it did not fund the government directly.
“They (loans) represent a milestone in Somalia’s development and reconstruction,” the bank said.
The bank said it would also work with the government in Mogadishu to improve services like education and healthcare, access to clean water, energy and finance for its citizens – under a programme called Country Partnership Framework.
Somalia has begun to draw investment from locals and Somalis living abroad owing to a degree of stability in the capital in recent years.
This despite the fact that parts of the country are still plagued with militant violence from terrorist group al-Shabab.
Somalia’s economy is forecast to grow by an average of between 3.5 and 4.5 percent annually in 2019-2022, when the partnership on social services will run, the World Bank said.