S\u00e3o Paulo \u2013 The African Development Bank Group (AFDB) announced earlier this week an additional debt relief for Somalia and the approval of a grant from its fund to the country, totaling USD 19.7 million, the AFDB reported.<\/p>\n\n\n\n
The debt relief, granted through the African Development Fund (ADF), which is also providing the financial grant, paves the way for the full cancellation of Somalia\u2019s loans with the fund, covering the repayment period from 2024 to 2039, according to the bank\u2019s information.<\/p>\n\n\n\n
The AFDB says the debt relief follows the successful completion of the enhanced initiative for the Heavily Indebted Poor Countries (HIPC), a program implemented with the World Bank to reduce unsustainable debt burdens in countries that commit to poverty-reduction policies. The additional relief is expected to reduce Somalia\u2019s external debt by USD 17.68 million, freeing up budget space for the country\u2019s development priorities.<\/p>\n\n\n\n
The grant is aimed at improving the living conditions of 20,000 vulnerable families and supporting the local integration of over 128,000 internally displaced people from the border city of Dolow, one of the most fragile in the country. The project will address housing needs by providing climate-resilient homes and safe, dignified shelter after years of displacement.<\/p>\n\n\n\n
The aid also includes plans for the development of new stormwater drainage systems and the rehabilitation of irrigation channels to reduce flood risks, protect crops, and strengthen food production. Among other measures, women and youth will have access to vocational training, support for entrepreneurship, and resettlement kits.<\/p>\n\n\n\n