The World Bank has backed Somalia’s economy to grow above expectations for the next three-to-five years, if the country can sustain its current economic reform momentum.
The Horn of Africa country has been in turmoil since 1991, when clan warlords overthrew President Siad Barre and then turned on each other. Over the past decade it has been hit by famine and sporadic terror attacks by al Qaeda-linked militant group al Shabaab.
Several indicators over the last 12 months have demonstrated that Somalia is well on its way to recovery from the years of turmoil and economic distress.
Somalia on the rise
Tax collection by the government increased by 29% last year, as the economy recovered from a drought the previous year and the government changes its tax policies, the World Bank said.
The Washington based lender, in September last year, approved the first loanto Somalia in 30 years, $80 million to fund public finance reforms.
In May this year, the International Monetary Fund said Somalia’s economy was on the right track but warned that it was still vulnerable to fragile security, climate change and poverty.
In November last year, continent aviation powerhouse, Ethiopian Airlines made its first landing in the Somali capital Mogadishu after 40 years absence.
“Our flights will quickly grow to multiple daily flights given the huge volume of traffic between the two sisterly countries and the significant traffic between Somalia and the rest of the world,” Tewolde GebreMariam, Ethiopian Airlines’ chief executive, said in a statement.