The World Bank is set to lend Somalia $80m (£60m), the first loan it has given the country for 30 years, Reuters news agency reports.
It cut ties with Somalia when the conflict broke out in 1991 and though it resumed work in 2003, it did not fund the government directly, Reuters adds.
The bank has drawn up its first development strategy for the country that is aimed at strengthening basic services like access to clean water and improved health and education.
The UN-backed government has managed to bring stability to some parts of Somalia, but it continues to battle Islamist militant group al-Shabab for control of the whole country.
