Finance Minister Abdirahman Beileh on Somalia’s economic outlook

Somalia's economy faced numerous challenges in 2019 and 2020, including droughts, floods, locust invasions, and the COVID-19 pandemic, leading to a contraction in real GDP in 2020. However, Finance Minister Abdirahman Beileh remains optimistic about the country's economic outlook. The Minister highlighted the progress made in partnership with the international community and the IMF through initiatives like the HEPA program, which has enabled access to grant resources and improved economic performance assessments. He emphasized the importance of economic independence and revenue growth, noting that Somalia's domestic revenue is steadily increasing, paving the way for covering operating costs and running the government. Minister Beileh expressed confidence in the economy's resilience, despite external perceptions from major ratings agencies like S&P and Moody's. He discussed the significance of the rule of law, government stability, and a conducive business environment to attract international investors and facilitate economic growth. Looking ahead, Somalia aims to focus on developing its livestock and marine resources, leveraging its extensive coastline for exports and enhancing the processing industry to reduce imports and boost exports. Additionally, plans are underway to tap into the African Continental Free Trade Agreement and improve trade policies to attract investments. The Minister addressed the historical challenges related to piracy, highlighting the government's efforts to enhance security and attract shipping lines for marine resource development. Regarding Somalia's relationship with neighboring Kenya, Minister Beileh emphasized collaboration for mutual development, acknowledging Kenya's economic prowess and the potential benefits of working together. Despite the country's debt levels and engagement with the Paris Club for debt relief, the Minister reassured that debt servicing does not currently impact Somalia's economy, and strategies are in place to manage and reduce the debt burden in the future.