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
Last Disbursement Planned Date	30 Jun 2021
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Environmental Category	3
Commitment	U.A 89,000,000
Status	Completion

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	03 Oct 2022

Export

Contact Details

Name	ALAMIR AHMED Mosllem Ahmed
Email	m.ahmed@afdb.org

Geographic Location

Country	Somalia

Coordinates	Location Name
2.03711 45.3438	Mogadishu

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 89,000,000

Fragile States Facility

U.A 89,000,000

Disbursements

Document Type	Language	Document
Appraisal report	en	viewer
Project Completion Report	en	viewer
Evaluation Report	en	viewer
Project Completion Report	fr	viewer
Appraisal report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Percent of non-salary expenditures subjected to Somalia Financial Management Information System (SFMIS) commitment control	%	2020	90	2021	83,5
Country Policy and Institutional Assessment (CPIA) score for quality of budgetary and financial management	Rating (1=low to 6=high)	2020	2	2021	1,8
Country Policy and Institutional Assessment (CPIA) score for efficiency of revenue mobilization	Rating (1=low to 6=high)	2020	1,8	2021	1,5
Enactment of Revenue Bill	None	2020	Revenue Bill enacted	2021	Revenue Bill not enacted
CPIA score for efficiency of revenue mobilization improved	Number	2020	2,5	2021	1,5
Availability of Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) regulations that apply to all financial institutions	None	2020	AML/CFT regulations that apply to all financial institutions is in place	2021	AML/CFT regulations that apply to all financial institutions are not in place
Capacity and governance of the Central Bank of Somalia (CBS) strengthened and progress in normalization of correspondence banking relationships	None	2020	Strategic Plan adopted and new organizational structure in place	2021	Central Bank of Somalia (CBS) strategic plan (2020-2024) was adopted and already guiding the CBS in undertaking critical reforms. CBS has also adopted a new organizational structure and initiated the process of transforming CBS from being primarily a fiscal agent for the government into a modern, effective, and policy-oriented Central Bank
The use of commitment control on payments for goods and services enforced across all MDAs	None	2020	PFM Regulations validated and translated. To be applied in fiscal year 2021	2021	No regulation in place for use of commitment control
Amendment of the 2016 Public Procurement Concessions and Disposal Act enacted	None	2020	Amended Public Procurement Concessions and Disposal Act Enacted and Promulgated for implementation	2021	2016 Public Procurement Concessions and Disposal Act in use
Regulations corresponding to Amended Public Procurement Concessions and Disposal Act issued	None	2020	Procurement and Disposal Regulations to support implementation of new Procurement Law issued and adopted	2021	Procurement and Disposal Regulations not issued
Goods inspection included in the automated front-end declaration process and IT systems at the port of Mogadishu	None	2020	Goods inspection included in the automated front end declaration process and IT systems at the port of Mogadishu	2021	Goods inspection not included in the automated front-end declaration process and IT systems at the port of Mogadishu
CBS Strategic Plan adopted and transition towards updated organizational structure (as approved by the CBS Board in November 2018) commenced	None	2020	Strategic Plan adopted and transition towards updated organizational structure commenced in 2020	2021	Strategic Plan has been prepared, but not adopted