Mogadishu, December 13, 2023 – The Federation of Somali Commerce Unions (FESTU) is celebrating a historic day as Somalia marks a major achievement by efficiently reaching the completion level of debt reduction below the World Financial institution and Worldwide Financial Fund’s (IMF) Closely Indebted Poor Nations (HIPC) Initiative.
This accomplishment signifies the start of a brand new period in Somalia’s pursuit of financial stability and progress. FESTU extends its heartfelt congratulations to President Hassan Sheikh Mohamud and his authorities, commending their efforts not solely in initiating the debt reduction course of but in addition in overcoming varied challenges to attain this breakthrough whose constructive implications are far-reaching, particularly for the working individuals, who make up the vast majority of Somalia’s inhabitants.
Debt reduction represents a ray of hope for Somalia’s financial future, providing a chance to shed the load of debt that has hindered the nation’s progress for too lengthy. The discount within the debt burden is anticipated to instantly contribute to larger financial stability, fostering an surroundings conducive to job creation and improved dwelling circumstances for employees and their households.
For Somali employees, debt reduction means extra jobs, honest pay and improved working circumstances. With much less debt to fret about, the federal government can now make investments extra in necessary areas like schooling, healthcare and infrastructure. This may make life higher for all Somalis, particularly the individuals who work onerous to maintain our economic system going.
It’s important to acknowledge that debt reduction carries a shared accountability. The federal government should diligently work to reinforce home income mobilization for financing growth priorities whereas safeguarding towards potential future debt misery. Accountable monetary administration, coupled with transparency and rigorous oversight of spending and investments, can be important in sustaining the progress achieved by means of debt reduction.
FESTU Normal Secretary, Omar Faruk Osman, emphasised the urgency of steady and substantial help from worldwide monetary establishments (IFIs) within the type of grants somewhat than loans. He said, “Now that Somalia has reached the HIPC completion level and contemplating the nation’s urgent wants, it’s essential for the nation to obtain important and ongoing help from IFIs. These grants will allow Somalia to fund important applications geared toward enhancing the lives of our much less lucky residents and strengthening the financial well-being of the Somali individuals. Commerce unions firmly consider that anticipating Somalia to tackle new debt can be unwise, probably main us again into the monetary difficulties we’ve simply overcome.”
“As we transfer ahead, it’s crucial that we stay vigilant to make sure the equitable distribution of the advantages of debt reduction amongst Somali residents. Moreover, we wholeheartedly endorse the worldwide calls for of commerce unions for an improved system of debt decision for nations in Africa and different areas grappling with debt crises,” asserted FESTU Normal Secretary.
The journey to safe debt reduction was a prolonged one for Somalia and as such, FESTU stands able to collaborate with the federal authorities, federal member states, worldwide companions and civil society to observe the implementation of debt reduction initiatives, advocate for the rights and pursuits of employees and actively contribute to Somalia’s sustainable growth.
