Somalia - Economic and Financial Reforms Support Program (EFRSP)


Project Summary

Approval Date 26 Feb 2020
Signature Date 02 Mar 2020
Planned Completion Date 31 Aug 2020
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 11330
Commitment U.A 89,000,000
Status Implementation

Project General Description

The proposed operation is a grant to the Federal Republic of Somalia of UA 89 million from pillar I of the Transition Support Facility (TSF) from ADF-14 resources, to finance the Economic and Financial Reforms Support Program (EFRSP). The Program complements Somalia’s efforts to advance its development agenda (consolidate peace, accelerate reductions in poverty and income inequality, catalyze needed financing for transformative growth generating infrastructure). It consists of two broad components namely: (i) strengthening domestic revenue mobilization and public financial management; and (ii) advancing financial sector development. The operation has been designed in anticipation of Somalia’s arrears clearance, a process being undertaken by the United Kingdom (UK). It takes into account the need for the Bank to step up its re-engagement with Somalia, post-arrears clearance, and to support the country’s on-going economic and financial reforms. The implementation of the reforms being supported by the program is expected to lead to high, sustainable and inclusive growth for Somalia. This operation is strongly coordinated with those of the WB and IMF.

Project Objectives

The goal of the proposed program is to restore fiscal and economic stability through improved Public Financial Management (PFM). Consistent with the Federal Government of Somalia (FGS) reform program, the overall operational objectives of the proposed operation are to (i) support the building of a strong foundation for inclusive and selfreliant economic growth; and (ii) build state capacity for transparent and accountable management of public resources, enhance financial sector stability, and strengthen compliance with the framework for anti-money laundering/combatting the financing of terrorism. The proposed operation will lay the foundation for longer-term engagement in policy dialogue with the FGS.

Beneficiaries

The direct beneficiaries from the program are Somalia key PFM and financial sector oversight institutions; while the indirect beneficiaries are the people of Somalia who will benefit from enhanced fiscal space for basic service delivery resulting from the unlocking of access to concessional funding.

Participating Organization

Funding
Fragile States Facility
Implementing
GOVERNMENT OF SOMALIA MINISTRY OF FINANCE

Information

IATI identifier 46002-P-SO-K00-003
Last Update 07 Aug 2020

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Geographic Location

Country Somalia