WB supports Somalia’s shift from fragility to resilience and growth
Mogadishu, Somalia (PANA) - The World Bank’s Board of Executive Directors has announced a new five-year Country Partnership Framework (CPF) for Somalia.
The CPF will assist Somalia in building a more stable, visible, and legitimate state able to provide basic services, foster inclusive private-sector led growth, and build resilience, with a long-term view to restoring the social contract and enabling Somalia’s emergence from fragility and conflict.
In a press statement, the Bank said that the CPF with Somalia was a joint strategy between the World Bank Group, and the government to reduce poverty and improve the livelihoods of the people of Somalia.
The CPF will build on gains Somalia made when it reached the Heavily Indebted Poor Countries (HIPC) Initiative Completion Point in December 2023.
“This important milestone represented a new start for Somalia and has allowed the country to reengage with the international financial institutions,” the Executive Directors noted.
The CPF was informed by extensive stakeholder consultations and is aligned with the main objectives of the Federal Government of Somalia’s (FGS’s) 9th National Development Plan. It supports the government’s emerging Vision 2060, building on key country analytics, including a 2023 Systematic Country Diagnostic Update, a Risk and Resilience Assessment, and lessons learned from the CPF Completion and Learning Review.
“Somalia has a unique opportunity to leverage the momentum created by achieving HIPC Completion Point in December 2023 to look forward and invest in growth, people and resilience,” said Kristina Svensson, World Bank Country Manager for Somalia.
“The CPF will provide financial and technical assistance to support the ambitious development agenda.”
The CPF is anchored in the World Bank’s new vision and mission of creating a world free of poverty on a liveable planet, aiming to strengthen resilience at the level of the Somali economy, its people, and the environment.
Engagements will respond to several global challenges and the bank’s Evolution Roadmap priorities, including climate change adaptation and mitigation, energy access, digitalization, and protection of biodiversity and nature.
The programme will support IDA20 themes, including jobs, climate action, fragility, and human capital, and the achievement of critical Sustainable Development Goals.
The IFC will support upstream reforms and undertake advisory engagements to lay the groundwork for investments.
“The private sector will play an increasingly important role driving social and economic development in Somalia, and the Country Partnership Framework underscores IFC’s commitment to Somalia’s growth strategy,” said Cheick-Oumar Sylla, IFC Regional Director for North Africa and the Horn of Africa.
“Working with our World Bank colleagues and other partners, IFC will continue to support development in Somalia that is green, inclusive, and sustainable.”
MIGA will look to replicate and scale-up green energy investments after its first investment in FY23.
“The Country Partnership Framework makes the case for solutions such as MIGA’s political risk insurance to crowd in cross-border private sector investors into Somalia,” said Moritz Nebe, Acting MIGA Director for Economics and Sustainability.
“MIGA, through collaborating with our World Bank colleagues and development partners, looks forward to supporting more projects in the country as Somalia executes on its post-HIPC development strategy.”
Despite Somalia’s high-risk environment, the World Bank has played a key role in convening and collaborating with development partners, the United Nations, the International Monetary Fund, the African Development Bank and others to help Somalia build visible core government capacity, legitimate institutions, and achieve development results within a longer-term international aid framework.
In 2013, the World Bank helped establish the Multi Partner Fund (MPF), which has funded Advisory Services and Analytics (ASA) and piloted and tested programmes, such as in governance, the business environment, and urban resilience, later scaled-up by the International Development Association (IDA).
The Somalia portfolio is currently at $2.3 billion comprising 22 projects.
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