MOGADISHU — Somalia’s external public debt has undergone a historic transformation, declining from $5.23 billion in 2018 to $1.48 billion in 2025, while the external debt-to-GDP ratio fell from 64 percent to 11 percent over the same period .
The dramatic reduction follows Somalia’s attainment of the Completion Point under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative on December 13, 2023. The milestone marked the culmination of more than a decade of reforms aimed at strengthening macroeconomic management, public financial governance, fiscal transparency, and institutional capacity .
Total debt service savings for the country amounted to $4.5 billion, with debt relief provided by the IMF ($343.2 million), IDA…