Diplomatic reports indicate that the World Bank is considering suspending all financial support to the Somali Federal Government unless a political settlement is reached on the ongoing dispute between the central government and regional states. According to reliable sources, the World Bank will halt the financial subsidiary earmarked for Somalia before May if no progress is made on the mode of elections planned for 2026. This has raised concerns about the potential negative impact on the government’s revenue and basic services. Reports also suggest that some members of the regional states involved in the dispute with the central government are pushing for the suspension, arguing that once the current leadership’s term expires on May 15, any international support given will be to an illegitimate government. The World Bank provides Somalia with an annual amount of 100 to 200 million US dollars, which is designated for supporting tax system reform, financial management, accountability, and combating corruption. This support is also contingent on political laws and trade regulations. This is the first time such a scenario has occurred in the country. In March 2021, the World Bank, along with the European Union and other governments, including Saudi Arabia, suspended financial support to Somalia due to the political dispute and allegations of power abuse by former Somali President Mohamed Abdilahi Farmajo.
