Update1: World Bank approves first grants to Somalia in 30 years
Wednesday September 26, 2018
Somalia’s economy was 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 bank said.
"While agriculture is key to the economy, it remains vulnerable to shocks. As such, services will continue to be a main driver of growth, especially in the financial, transport and communication and trade sectors,” the lender said.
Hit by decades of conflict at the hands of clan militias, Somalia has over the past several years also been pummeled by an insurgency by al Qaeda-linked al Shabaab, famines and maritime piracy.
Parts of the country are still plagued by militant violence, but a degree of stability in the capital in recent years has begun to draw investment from locals and Somalis living abroad.
Last week, the International Monetary Fund said it expected the economy to grow by 3.1 percent this year from 2.3 percent in 2017, as it recovers from drought last year.
(This story corrects to show Somalia is receiving grants, not loans)
Update1: World Bank approves first grants to Somalia in 30 years
NAIROBI (Reuters) - The World Bank has approved $80 million in grants to Somalia to fund public finance reforms, marking the first disbursement to the government of the conflict-ridden country in 30 years, the bank said. The Washington-based lender,