MOGADISHU (Somaliguardian) –Somalia’s Finance Minister Abdirahman Beyle said that COVID-19 is crippling country’s already delicate economy, in an interview with the BBC.
The Minister stated that remittance flows to the country have dried up after so many Somalis in the overseas lost their jobs due to the contagion; adding that the government’s revenue has shrunk by 40% since they are unable to collect taxes.
The Somali Finance Minister believes some people would starve as result of the dried up remittance flows to the poor country.
Approximately $1.5bn a year are remitted to Somalia by diasporas, which is more than the amount of funds given to the country as a foreign aid, and many families depend on the cash for their own survival.
This is the first time Somalia’s government openly states the devastating effect coronavirus pandemic is having on its economy; nonetheless, it continues asking for augmented international aid to subsidize public sector institutions.
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