Eritrea And Somaliland Have Never Received Loan From The IMF
@AfricaFirsts, an X-based blog claims that Eritrea and Somaliland are the only East African countries that have never borrowed a loan from the International Monetary Fund, IMF. The post had images showing a street with rows of houses and modern duplex houses.
When this report was published, this claim had over 49,400 views and about 2,000 replies, reposts, quotes, likes and bookmarks. In the comment section, @njenjemera said “Would you loan to those countries?” and @Ifunanyaomeje wrote “That's because the two countries mentioned don't have enough collateral for the loan.”
VERIFICATIONS
The fact checker carried out a reverse search on the images in the claim using Google Lens and the results reveal that these are housing properties in Daarul Salaam City, Somalia.
Claim 1: Eritrea Has Never Received Loan From The IMF
VERIFICATION
Eritrea, a small nation in the Horn of Africa with its capital in Asmara, gained independence from Ethiopia in 1993 after a 30-year war. The country has been led by President Isaias Afwerki since independence and operates as a one-party state under the People’s Front for Democracy and Justice (PFDJ). Eritrea’s government follows a policy of economic self-reliance and minimal engagement with international financial institutions. The East African nation relies mainly on mining, agriculture, and remittances from its diaspora, maintaining low external debt but facing limited economic growth and global isolation due to its stance on governance and human rights.
Eritrea is one of the few African countries that has never borrowed from the IMF. It has no IMF credit outstanding since joining the Bretton Woods institution in 1994.
VERDICT
It is TRUE that Eritrea has no record of receiving loans or participating in IMF financial programs.
Claim 2: Somaliland Has Never Received Loan From The IMF
VERIFICATION
Somaliland is a self-declared independent republic located in the Horn of Africa, bordering Djibouti, Ethiopia, and Somalia. It declared independence from Somalia in 1991 following the collapse of Siad Barre’s regime, establishing its own government, military, and currency. Although it functions as a de facto state with relative peace, democratic elections, and stability, compared to the rest of Somalia, Somaliland has not yet been recognised internationally.
The economy relies mainly on livestock exports, remittances from the diaspora, and trade through the port of Berbera, which has been modernised in partnership with DP World.
Somaliland cannot receive loans from the IMF due to her lack of recognition as a state.
VERDICT
Somaliland is not a recognised state, hence the claim is MISLEADING. Somaliland cannot receive loans from the IMF because it is not a member of the United Nations, IMF, or World Bank. The republic is not internationally recognised as a state with sovereignty, therefore cannot access international loans or financial aid.
CONCLUSION
The claims that Eritrea and Somaliland are the only East African countries that have never borrowed from the IMF is PARTLY TRUE. Eritrea has never taken a loan from the International Monetary Fund since joining in 1994, due to its policy of financial self-reliance and limited engagement with global financial institutions. However, Somaliland has also never borrowed from the IMF not by choice, but because it is not internationally recognised as a sovereign state and therefore ineligible for IMF membership or loans.
