Arab League grants Somalia major debt relief, cancelling three-quarters of arrears

The Arab League has cancelled three-quarters of Somalia’s arrears, a move Mogadishu has hailed as a “historic” breakthrough.

The waiver covers unpaid annual membership contributions accumulated over nearly four decades.

At a meeting of the League’s Permanent Representatives in Cairo this week, Somalia’s envoy expressed gratitude for the decision, crediting the outcome to sustained diplomatic lobbying by his embassy under directives from Mogadishu’s leadership.

Somalia’s Ambassador to Egypt and Permanent Representative to the Arab League, Ali Abdi Aware, praised the decision as a “historic achievement” for the Horn of Africa nation.

Financial relief

“We sincerely thank the Arab League and its member states for this decision, which represents not only financial relief but also a powerful gesture of political support and brotherhood,” said Ali in his address.

The cancellation applies to debts accrued over 38 years in unpaid annual contributions, a burden Somali officials say has constrained the country’s full engagement with the regional bloc.

According to the Somali National News Agency, 75 per cent of the outstanding debts have been written off, though the exact amount was not disclosed.

Somalia joined the Arab League in 1974, fourteen years after independence.

Arab diplomats say the debt relief is intended to ease Somalia’s financial burden as it works to stabilise institutions after years of conflict.

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