Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

IMF recognises Somalia government

IMF BUILDINGWASHINGTON, Apr 13 – The International Monetary Fund recognised the government of Somalia on Friday, ending a 22-year break in relations that could lead to IMF technical and policy support to the country.

“The International Monetary Fund today recognised the Federal Government of Somalia, headed by President Hassan Sheikh Mohamud, paving the way for the resumption of relations after a 22-year interval,” the IMF said in a statement.

“The decision is consistent with broad international support and recognition of the federal government.”

Somalia has been an IMF member since 1962, but relations broke after the civil war of the early 1990s left the country with “no government with which the Fund could deal.”

Mohamud’s new government, which took office in September 2012, “has since enjoyed considerable support, including from the United Nations, the African Union, the European Union, the Organization of Islamic Cooperation, and many IMF member countries,” the IMF said.

Somalia, however, still owes some $352 million to the Fund, and so is currently ineligible for any new financing.

The country has been enmeshed in civil conflict and chronic fighting between warlords since the fall of dictator Mohamed Siad Barre in 1991.

A transitional government, backed by an African force, is starting to establish itself after major victories against the Shabaab, a violent Islamist group with links to Al Qaeda.

Shabaab are considered to be on the back foot, having lost a string of key towns in recent months to African Union forces, Somali troops and Ethiopian soldiers.

The UN Security Council last month suspended the arms embargo against Somalia for a year, easing the oldest international weapons blockade to help the government take on Islamist militants.

Advertisement. Scroll to continue reading.

But Washington believes the group remains a threat to stability in the Horn of Africa and beyond. In 2010, Shabaab is believed to have been behind suicide bombings in Uganda, and earlier this year claimed to execute a French hostage.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...