Mogadishu(Mogadishu24)-The Federal Government of Somalia and the USA on Tuesday signed the second phase of the Development Objective Assistance Agreement (DOAG) worth $92.6 million aimed to enhance Somalia’s financial capacity for development projects.

The agreement was signed by Somalia’s Minister of Finance, Bihi Iman Egeh, alongside the Minister of Planning, Investment, and Economic Development, Mohamud Beene, and the United States Agency for International Development (USAID).

Mr. Bihi Iman Egeh, the Federal Minister of Finance, highlighted the importance of this funding, which arrives at a critical juncture for the Somali Government.

“This morning, I co-signed the new Development Objective Assistance Agreement which is $92.6 million USD of additional financing for enabling development projects with Hon. Beenebeene and USAID Somalia. This is valuable support which comes at a critical time for Somalia,” said Bihi Iman Egeh Somalia’s finance minister.

He emphasized the importance of this funds for Somalia’s pursuit of stability and the reconstruction of functional institutions.

“These funds hold great importance in developing the essential needs of the Somali people, particularly in the education and health sectors, as well as promoting potential economic growth for our country,” he added.

Mr. Mohamud Beenebeene, the Minister for Planning, underlined the donation’s significance in bolstering resilience, stability, and economic growth in Somalia.

“I had the privilege of co-signing a landmark Development Objective Assistance Agreement (DOAG) valued at $92.6 million with the Government of the United States. This agreement is aimed at building resilience and stability, stimulating economic growth, and enhancing governance,” stated Hon. Mohamud Beenebeene, the Federal Minister for Planning, Investment, and Economic Development.

Earlier this month, Somalia received a debt-relief boost of $75 million grant from the World Bank in an effort to strengthen its efforts to build strong institutions. These grants were aimed to help the country towards full and irrevocable debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.

Prior, the government of Russia exempted $640 million of debt relief to the Federal Government of Somalia in an agreement signed in Saint Petersburg between Mr. Bihi Iman Egeh, Somali Minister of Finance, and Timur Igorevich Maksimov, Deputy Minister of Finance of Russia.

These debt reliefs are huge achievement towards implementing ambitious reforms to build functional institutions, attract investments and achieve economic growth.

Somalia is also currently engaged in discussions with some remaining bilateral and multilateral creditors, in an effort to achieve debt relief.

Despite facing several challenges, Somalia has managed to maintain macroeconomic stability. The country’s institutional reforms and strengthened financial systems have played a vital role in its journey towards debt relief, which will clear the loans contracted during the pre-civil war era.