Somalia and Angola have both begun discussions with the International Monetary Fund for support as their economies struggle under the weight of tumbling oil prices and insecurity respectively.
Many internally displaced Somalis live in camps like this one just outside the capital Mogadishu.
Many internally displaced Somalis live in camps like this one just outside the capital Mogadishu.
The IMF is set to talk in greater detail with Angola regarding a potential three-year financial assistance programme for Africa’s second largest oil exporter at the World Bank and IMF spring meetings later this month.
Beginning in May, and subject to consideration by IMF management, its economists will also support the Somali government as they pursue a reform agenda and the “ambitious process” of rebuilding the state and economic and social infrastructure.
While the programme in Somalia doesn’t include any financial element, the fund said it marks a significant milestone for the war-torn country in “normalising” relations with international financial institutions.
Rogerio Zandamela, who led an IMF team on a visit to Somalia, said its government’s reconstruction efforts were “bearing fruit”, with growth estimated at 3.7% for 2015.
“However, in the fiscal area, insecurity and war-induced destruction continue to hamper revenue collection and the delivery of services to the population,” he added.
The IMF programme will aim to support the government as it pursues policies and reforms to improve economic governance and the fiscal framework, and tries to rebuild the financial system.
Zandamela said it will focus also on fiscal management, strengthening institutions and filling “considerable” data gaps, with technical assistance and capacity building included.
In particular, the 12-month programme hopes to see through reforms to raise domestic revenue and improve budget preparation and execution, implement a recently-adopted arrears management strategy and press ahead with public financial management reforms to enhance transparency and accountability.