Somalia - Economic and Financial Reforms Support Program (EFRSP) (AFDB-P-SO-K00-003)

Countries
  • Somalia
Where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 26, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Federal Republic of Somalia
The holder of the loan, grant, or other investment.
Sectors
  • Finance
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 122.55 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Sep 10, 2020


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Project Description

According to bank documents, 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.

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.

Investment Description
  • African Development Bank (AFDB)
Contact Information

*Contact information not provided at the time of disclosure*

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/.