The International Fund for Agricultural Development (IFAD) announced yesterday (14 February 2023) that it will significantly increase its support for Somalia and resume its direct investments after a three-decade suspension due to loan arrears, which has caused millions of Somalians to experience acute food insecurity.
During the IFAD’s 46th assembly of the Governing Council, President Alvaro Lario said, “this comes at a critical time when Somalia is facing critical challenges to its food security.
The re-engagement was welcomed by the President of Somalia, Hassan Sheikh Mohamud, who also urged governments to give more than mere emergency aid to developing nations like Somalia.
5.6 million Somalians, including 214,000 who are assessed to be in a catastrophe condition as a result of an exceptional drought that has not been witnessed in decades, are currently suffering from high levels of acute food insecurity, according to the Integrated Phase Classification.
According to projections, between April and June 2023, 8.3 million Somalians could experience severe acute food insecurity. This involves guarding against the deaths of about 6.7 million of the most defenseless individuals.
IFAD has been aggressively soliciting funding from donors to Somalia and directing resources for the country’s rural development programs despite the arrears and the suspension of loans. IFAD has provided Somalia with around $40 million in aid since the early 1990s. Currently, there are two active projects.
For instance, a project in Puntland aids pastoralists and agropastoral in restoring damaged rangelands, using drip irrigation, improving animal health, and rehabilitating irrigation systems.
It is now possible for IFAD to resume direct investments because Belgium, Germany, Italy, and Sweden helped Somalia pay off its debt to IFAD. Since Somalia’s civil war began in 1991 due to the arrears, Somalia has been unable to take advantage of IFAD’s extremely advantageous loans and grants.
Ref: africanews
