Somalia and the World Bank have reaffirmed their commitment to deepening cooperation on economic reforms, institutional development and regional integration during high-level talks in Mogadishu on July 22, as the country pushes ahead with efforts to accelerate growth and strengthen public institutions.

The discussions, which brought together State Minister for Foreign Affairs and International Cooperation Ali Mohamed Omar, Permanent Secretary Hamza Adan Haadow and World Bank Country Manager Hideki Matsunaga, come at a pivotal moment for Somalia's economic trajectory. The meeting reflects continued engagement between Mogadishu and international financial institutions as the country seeks to transition from humanitarian dependence towards long-term development, while addressing persistent challenges such as climate vulnerability, unemployment and limited infrastructure.

According to the Ministry of Foreign Affairs, the talks focused on aligning the World Bank's support with the country's development priorities, including strengthening government institutions, promoting regional integration and advancing economic diplomacy to attract investment and expand trade opportunities. The ministry thanked the World Bank for its longstanding partnership, highlighting its support for governance reforms, infrastructure development and efforts to improve public services.

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World Bank Country Manager Hideki Matsunaga acknowledged Somalia's progress while underscoring the need for sustained reform. "Somalia has made important progress in strengthening macroeconomic management and institutions under difficult conditions," Matsunaga said. "However, overlapping shocks are slowing growth and putting pressure on jobs and household livelihoods."

The meeting comes as Somalia seeks to consolidate gains made since reaching the completion point of the Heavily Indebted Poor Countries (HIPC) Initiative in December 2023, which resulted in the cancellation of more than $4.5 billion in external debt. Since then, the government has focused on maintaining economic reforms, strengthening domestic revenue collection and creating conditions to attract greater foreign investment.

The World Bank has played a central role in supporting Somalia's recovery through investments in transport, education, health, social protection, urban development and digital transformation. Earlier this year, the bank reiterated its support for the implementation of Somalia's National Transformation Plan (2025-2029), which aims to drive inclusive economic growth, improve governance and reduce poverty.

However, the economic outlook remains fragile. Somalia's growth moderated to an estimated 3 percent in 2025, down from about 4 percent in 2023-24, as declining foreign aid, drought conditions, and rising living costs weighed on demand. Real GDP growth is projected at 2.8 percent in 2026 and 3.1 percent in 2027, constrained by continued aid reductions, climate variability, global price shocks, and limited productive capacity.

Both sides said they remained committed to working together to support Somalia's long-term development, economic resilience and sustainable growth. Sustained cooperation with development partners is seen as key to preserving reform momentum and unlocking investment needed to support Somalia's economic recovery and state-building efforts.