Poverty reduction in Somalia has decelerated largely due to aid cuts contributed to by the U.S.

Date: 5/26

Region: Africa

Country: Somalia

Topic: Economy & Livelihoods

Policy Lens: Economic & Trade Interests

Entry Type: System Impact

Additional Context: The rate of poverty reduction in Somalia, which had been accelerating since 2022, has stalled at 0.3% in 2025. This is, according to the World Bank, due to cuts that halted cash and in-kind aid for over two-thirds of former recipients due to aid cuts. This has been compounded by worsening drought conditions as noted by the World Bank.

Devex Researcher Note: According to the U.N. Office for the Coordination of Humanitarian Affairs's Financial Tracking Service the total amount of humanitarian assistance in Somalia decreased from $1.05 billion in 2024 to $530.9 million in 2025. U.S. cuts made up for 76.3% of this reduction.

Source: World Bank