Connect with us

Business News

Somalia Rebounding from Triple Shock—World Bank

Published

on

By Adedapo Adesanya

The World Bank has said Somalia’s economy is rebounding from the “triple shock”; the COVID-19 pandemic, extreme flooding, and the locust infestation, that ravaged the country in 2020.

The Bretton Wood institution noted that the country, located in the Horn of Africa, is expected to record a Gross Domestic Product (GDP) growth of 2.4 per cent in 2021.

This growth momentum is expected to continue in the medium term and reach pre-COVID-19 levels of 3.2 per cent in 2023.

This was contained in the latest World Bank Somalia Economic Update reports, which point out that the economy contracted by 0.4 per cent in 2020, less severe than the 1.5 per cent contraction projected at the onset of the global pandemic.

The World Bank pointed out that higher-than-anticipated aid flows, fiscal policy measures put in place by the Somali government to aid businesses, social protection measures to cushion vulnerable households, and higher-than-expected remittance inflows mitigated the adverse effects of the triple shock.

The report notes that the disruptions stemming from COVID-19 containment measures reduced federal and state revenue collection while increasing pressure to spend more on health and disaster relief.

Large increases in external grants enabled the federal government to begin rebalancing public spending toward economic and social services and to provide funds for new social programs and emergency response projects to increase resilience.

Speaking on this, Ms Kristina Svensson, World Bank Country Manager for Somalia noted, “As Somalia embarks on the road to recovery from the triple shocks, policy interventions that raise productivity, create jobs and expand pro-poor programs will be key.

“Creating jobs and ensuring that the most vulnerable are supported throughout the crisis need to be at the centre of policy action and private sector response.”

Interventions to improve the investment climate and encourage the formalization of businesses to attract more private investment would include reforms focused on reducing the cost of electricity and improving its reliability, levelling the playing field among private firms, reducing red tape, and broadening financial inclusion.

The special focus of the report is on the health sector which highlighted that 30 years of political instability has made Somalia’s health system the second most fragile in the world.

The COVID-19 pandemic has brought the sector under sharp focus and put investing in Somalia’s health system as an urgent political and economic consideration that is foundational to reducing fragility.

This was emphasised by Mr John Randa, World Bank Senior Economist, who said, “Support for the health sector is an essential component of resilient and inclusive development and investing in health sets Somalia on a path to reaping substantial demographic dividends from improvements in life expectancy and reductions in fertility.

“These investments are planned to contribute to improved health outcomes and strengthened government systems.”

The report also notes that strengthening Somalia’s health system is one of the biggest direct influences on improving human development and enhancing economic development in the country.

News21 mins ago

IGP queries Kyari over alleged link with Hushpuppi, panel rejects supercop’s extradition to US

News36 mins ago

How we lost one of our finest officers to rampaging ‘hoodlums’ in Ajao Estate, Lagos – Police

Business News41 mins ago

AfCFTA: NSACC Calls for Free Visas Across Africa

News56 mins ago

UPDC among top gainers as market cap rises by 0.12%

News1 hour ago

What we are doing to achieve food security in Nigeria – Buhari tells UN Summit

News2 hours ago

BREAKING: Obaseki finally releases long-awaited cabinet list [LIST ATTACHED]

News2 hours ago

Ex-President Zuma released from prison on medical parole

News3 hours ago

Osun threatens to bar civil servants from secretariat over COVID-19 vaccine

World3 hours ago

Prayer in Public Schools Is Back…as Long as It’s Prayer to Allah

News3 hours ago

German Chancellor, Angela Merkel, faults Nigerian govt over failed Siemens power project

World3 hours ago

MSNBC Host: ‘White Supremacy Is Now a Key Ideology of the Republican Party’

News4 hours ago

Guineans celebrate as soldiers seize power (photos)

World4 hours ago

Afghan Refugees at Fort McCoy Charged With…Acting Like They’re Still in Afghanistan

News4 hours ago

SocialMediaTrends: Reaction trails ‘shocking’ demise of ex-CBN deputy chief, Obadiah Mailafia

News5 hours ago

What’s Happening in SCOA Nigeria: Chairman, CEO, others lose N1.14bn – What you should know

News5 hours ago

BREAKING: Buhari approves activities to mark Nigeria at 61

World5 hours ago

‘The Jews Are Evil’: Ohio Man Converts to Islam, Plots Massacre at Synagogue

News6 hours ago

ECOWAS condemns Guinea coup, demands immediate release of ousted President

World6 hours ago

10% of Biden’s Afghanistan Aid Will Go To Taliban

News6 hours ago

HURIWA alleges Mailafia may have been killed, demands probe of death

Viral20 hours ago

Rihanna Reaches Out To 17-Year-Old Nigerian Hawker, Salle After Viral Video

Entertainment20 hours ago

#BBNaija: “I would like to have a 3some with Nengi and Vee” – Pere

News14 hours ago

Father, mother, son, drown inside US apartment following Hurricane Ida flood

News7 hours ago

COVID-19: Nigerian govt lifts flight ban on India

News11 hours ago

Taliban breaks up women protesters in Afghan capital

Business News21 hours ago

Nigerian Naira Weakens by 0.12% at Official Window

News17 hours ago

Domestic flights resume at Kabul International Airport

Politics13 hours ago

BREAKING: Governor Sanwoolu receives Guiness World Record Certificate [PHOTOS]

Politics14 hours ago

JUST IN: Policeman who killed Monsura Ojuade arraigned in court [PHOTOS]

Business News15 hours ago

Chipper Cash Launches Free P2P Money Transfers in SA

Politics17 hours ago

BREAKING: Biafra agitators arrested in Benue State – BNL

Politics9 hours ago

BREAKING: FG extends N-Power verification exercise

News6 hours ago

Naira heading to N600/$1, British pounds goes for N760/ £1

News6 hours ago

HURIWA alleges Mailafia may have been killed, demands probe of death

Entertainment14 hours ago

#BBNaija: “I hope you’re still waiting for me” – Pere breaks down in tears while sending shoutout to his girlfriend and mum (Video)

News10 hours ago

Lagos council mourns King Sunny Ade’s wife

Entertainment12 hours ago

#BBNaija: Angel reveals she has a boyfriend outside the house; People dig up loved-up video of them together

Health10 hours ago

Warning Signs Your Liver Is Failing, Say Experts

News6 hours ago

ECOWAS condemns Guinea coup, demands immediate release of ousted President

News5 hours ago

BREAKING: Buhari approves activities to mark Nigeria at 61

Trending