Several countries have agreed to forgive more than $2bn (£1.5bn) of Somalia’s debt.
The Paris Club, which includes the United States, Japan and Russia, has written off almost all outstanding debt after Somalia reached the end of a debt relief plan overseen by the International Monetary Fund and the World Bank.
Somalia also committed to prioritizing poverty reduction through investments in health, education and basic infrastructure.
Finance Minister Bihi Ege said on Twitter: “Full debt relief will transform Somalia’s future and allow our government to create fiscal space for essential public services. It will happen,” he said.
Last December, Somalia completed the IMF and World Bank’s Enhanced Heavily Indebted Poor Countries (HIPC) Debt Relief Initiative, enabling it to cancel US$4.5 billion ($3.5 billion) worth of debt.
Full debt forgiveness of $4.5 billion will reduce the country’s external debt from 64% of GDP in 2018 to just 6%.
Somalia has been locked out of the global financial system for more than 30 years due to years of civil war and threats from armed groups.