With economic growth gathering pace, Somalia’s capital Mogadishu is considered a beacon of hope for the fragile post-conflict state. New businesses, returning diaspora, and an energetic younger generation all contribute to growing prosperity and confidence. But this optimism, directly tied to the private sector and Somalia’s celebrated entrepreneurial spirit, is somewhat superficial considering the massive structural and infrastructural challenges that must be addressed to grow the economy in a sustained, robust manner. Historical debt is a critical factor stifling this development. Somalia is beholden to $5.1 billion of external debt and, in the foreseeable future, has few prospects to pay it back. While progress has been made in rebuilding Somalia after two decades of civil war, it remains one of the poorest nations in the world, languishing at the bottom of most United Nations indicator tables. Debt, in particular to international financial institutions like the International Monetary Fund (IMF), restricts Somalia from borrowing for large-scale projects that can produce generational change or facilitate new revenue streams.