Nairobi(Mogadishu24)-In a significant move toward supporting Somalia’s economic growth, Japan has cancelled over $90 million of debt owed by Somalia. Ogihara Hiroshi, the Deputy Chief of Mission at the Japanese Embassy in Nairobi, Kenya, announced the debt relief and signed the agreement with Somali Minister of Finance, Bihi Iman Egeh, at an event held in Nairobi on Thursday.
Minister Egeh expressed gratitude to Japan, stating, “This agreement marks the completion of the debt relief process and aligns with the Paris Club agreement of March this year, which supported Somalia’s debt cancellation. I thank the Japanese government and people for their unwavering support of our economic reforms and growth.”
This development comes a day after the U.S. announced a similar debt relief measure for Somalia, with Ambassador Richard Riley and Minister Egeh signing an agreement to forgive $1.14 billion of Somali debt to the United States.
The U.S. has also provided $1.2 billion in assistance to Somalia this fiscal year, reinforcing its commitment to the country's economic and humanitarian progress.
These debt cancellations by Japan and the U.S. underscore international support for Somalia’s reform initiatives and its pathway toward sustainable economic growth.
