International and regional bodies

Somalia and the World Bank

The World Bank lent to Somalia from 1965 to 1990, then stopped for almost three decades. Since Somalia cleared its arrears on 5 March 2020 and won debt relief on 13 December 2023, the Bank's IDA arm has built a portfolio of about US$2.34 billion in grants, covering cash transfers, health, water, power and budgets. It works from Nairobi.

Last checked 2026-11-13 7 sources Reading time: 7 min

How do Somalia and the World Bank relate today?

The World Bank's International Development Association (IDA), its fund for the poorest countries, has a Somalia portfolio of US$2.34 billion. Six regional projects add US$523 million (World Bank, Somalia overview).

Recent approvals listed by the Bank include (World Bank, Somalia overview):

  • SPRING (productive, resilient and inclusive growth): US$105 million.
  • Second Economic Resilience Development Policy Financing: US$125 million, budget support.
  • BOOST-YOU (social protection and youth jobs): US$112 million.
  • Bulsho (community and local institutions): US$35 million.

The Bank's current plan for Somalia, the Country Partnership Framework, covers fiscal years 2024 to 2028. It aims at private-sector jobs, human capital and resilience to climate and other shocks (World Bank, Somalia overview).

When did the World Bank start working in Somalia?

The Bank's first project in Somalia, a roads loan of US$6.2 million, was approved on 29 March 1965 (World Bank Projects API, Somalia).

From 1965 to 1990 the Bank approved 41 projects worth about US$492 million in total (same source). They included:

  • Ports: Mogadishu port construction, US$13 million (1973), and port modernisation, US$22.6 million (1986).
  • Roads: four highway projects between 1968 and 1983.
  • Water: two Mogadishu water supply projects (1978 and 1982).
  • Farming and livestock: the Trans-Juba livestock project (1974), Northwest Region agriculture (1976 and 1985), Bay Region agriculture (1979) and the Central Rangelands projects (1979 and 1988).
  • Energy: petroleum (1980) and gas (1984) exploration, and power rehabilitation (1987).
  • Reform loans: agricultural sector adjustment credits of US$30 million (1986) and US$70 million (1989).

The last pre-war approval was an education rehabilitation project of US$26.1 million on 27 March 1990 (World Bank Projects API).

What happened after 1991?

After the state collapsed, Somalia fell into arrears and was outside the international financial system for 30 years (World Bank, 25 March 2020). The Bank could not lend in the usual way. A few small grants were made, such as Puntland primary health services and tsunami livelihood recovery in 2005 (World Bank Projects API).

In 2013 donors and the Bank set up the Somalia Multi-Partner Fund (MPF). It is a trust fund that pays for core government systems at federal and state level and helped Somalia return to normal relations with lenders (World Bank, Somalia Multi-Partner Fund). Its supporters are Canada, Denmark, the EU, Italy, Germany, Norway, the State and Peacebuilding Fund, Sweden, Switzerland, the United States and the United Kingdom (same source).

The first projects of the new era included public financial management capacity in December 2013 and the Recurrent Cost and Reform Financing Facility in August 2014 (World Bank Projects API).

How were the arrears cleared?

Somalia's arrears to IDA were cleared on 5 March 2020 with a bridge loan from Norway. Norway was repaid from a World Bank development policy grant (World Bank, 25 March 2020).

That grant was the Somalia Reengagement and Reform Development Policy Financing, approved on 27 February 2020 for US$420 million, the largest single World Bank operation in Somalia (World Bank Projects API).

On 25 March 2020 the IMF and World Bank declared Somalia eligible for debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative (World Bank, 25 March 2020). The same month Somalia joined MIGA, the World Bank Group's investment-guarantee agency (World Bank, Somalia overview).

The IDA board approved the completion point on 12 December 2023, and the IMF the next day. IDA's share of the relief was US$448.5 million, plus US$96.4 million under a second scheme, the Multilateral Debt Relief Initiative (IMF press release 23/438, 13 December 2023). For the full debt story see Somalia and the IMF and Debt and debt relief.

What has the World Bank paid for since 2013?

From 2013 to mid-2024 the Bank approved operations worth about US$2.9 billion in Somalia (World Bank Projects API). The main lines, with approval dates (same source):

  • Cash safety net (Baxnaano): Shock Responsive Safety Net, US$65 million (8 August 2019), with additional financing of US$110 million (2021), US$143 million (2022) and US$100 million (15 December 2023). The Bank says Baxnaano has reached 4 million people (World Bank, Somalia overview). See Baxnaano: Somalia's safety net.
  • Paying the government: Recurrent Cost and Reform Financing, phases 1 to 3 (2014, 2015, 2020) and additional financing in 2022 and 2024.
  • Budget support: Inclusive Growth development policy operations, US$100 million (2022) and US$75 million (2023), then the Economic Resilience series from 2024.
  • Health: Damal Caafimaad, US$100 million (28 June 2021), the Bank's first health investment in Somalia in 30 years (World Bank feature, 24 November 2025). COVID-19 vaccines: US$48 million (2021) and US$23 million (2022).
  • Electricity: Somali Electricity Sector Recovery, US$150 million (8 December 2021), and clean energy access, US$100 million (28 November 2023).
  • Cities: Somalia Urban Resilience Project II, US$133.5 million (9 December 2019), with three later top-ups.
  • Water: Barwaaqo rural water, US$70 million (9 December 2022).
  • Education: education for human capital, US$40 million (2021), and Rajo Kaaba for women's education and skills, US$52 million (2022).
  • Fisheries: Badmaal sustainable fisheries, US$50 million (12 June 2024).
  • Regional: Horn of Africa Infrastructure Integration, US$63 million (30 September 2022).
  • Crisis recovery: Somalia Crisis Recovery Project, US$137.5 million (15 May 2020) and US$50 million more (2021).

In 2026 the Bank's Crisis Response Window gave US$35 million for emergency cash to 498,000 people (World Bank, Somalia overview).

Who built the tie?

Where is the World Bank's office?

The Somalia country office is at the Delta Center, Menengai Road, Upper Hill, Nairobi, Kenya (World Bank, Somalia overview). Projects are run by Somali ministries, for example the Ministry of Health Development for Damal Caafimaad (World Bank feature, 24 November 2025). For other bodies in the country see International bodies in Somalia.

How does the World Bank deal with Somaliland and the member states?

The Bank lends to the Federal Government, but several projects run in Somaliland and the states:

  • Somaliland civil service: the Somaliland Civil Service Strengthening Project, US$10 million, approved on 30 June 2016, followed by a second phase (World Bank Projects API).
  • Berbera port: a US$4.9 million towage services project, approved on 2 October 2015 (same source).
  • Somaliland health: Damal Caafimaad began in Somaliland in early 2024. By 2024 it had 49 working health facilities there and more than 425,000 outpatient visits, up 27% on the year before (World Bank feature, 24 November 2025).
  • Puntland: Puntland primary health services was approved on 23 November 2005 (World Bank Projects API).
  • State systems: the Multi-Partner Fund pays for core government systems at both federal and state level (World Bank, Somalia Multi-Partner Fund).

How does the Bank see Somalia joining the EAC?

The Bank published an economic assessment of Somalia's accession to the East African Community, which Somalia joined in March 2024 (World Bank, Somalia overview; World Bank, Economic Assessment of Somalia's Accession to the EAC). See Somalia and the EAC.

Sources

  1. World Bank, Somalia overview · worldbank.org
  2. World Bank Projects API, Somalia · search.worldbank.org
  3. World Bank, 25 March 2020 · worldbank.org
  4. World Bank, Somalia Multi-Partner Fund · worldbank.org
  5. IMF press release 23/438, 13 December 2023 · imf.org
  6. World Bank feature, 24 November 2025 · worldbank.org
  7. World Bank, Economic Assessment of Somalia's Accession to the EAC · openknowledge.worldbank.org

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