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Donors commit to funding infrastructure project gap in Somalia

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World Cement,

During the African Development Bank’s Annual Meetings in Ahmedabad, India, on 25 May 2017, the Federal Government of Somalia (FGS) and the African Development Bank (AfDB) organised a meeting with donors and friends of Somalia on “Financing the Infrastructure Pillar of Somalia’s National Development Plan (NDP) 2017-19.”

The meeting included representatives from the following countries and institutions: Somalia, Saudi Arabia, Kuwait, United States of America, Germany, Sweden, Egypt, Italy, United Kingdom, Netherlands, Morocco, World Bank, and AfDB.

Through the NDP 2017-19, the FGS has prioritised the rehabilitation and development of Somalia’s infrastructure, given its importance in accelerating economic recovery and job creation, developing a competitive and prosperous private sector, and restoring peace and stability.

This meeting was a timely opportunity for the FGS to further articulate its infrastructure investment priorities, and outline the financing options available for delivering these priorities, following the successful launch of a New Partnership Agreement between Somalia and the international community at the London Somalia Conference on 11 May 2017, and the broad commitments that were made to support the delivery of the NDP. The FGS also noted that aid flows to Somalia are currently prioritied towards short term imperatives, which leave infrastructure and economic growth as the least funded pillars of the NDP priorities. As a result, it is important that new sources of funding are identified and better aligned to the country’s top priorities.

An important channel to mobilise resources for important infrastructure projects is the recently established and AfDB administered Multi-Donor Somali Infrastructure Fund (SIF). During the meeting, the AfDB team presented a pipeline of priority energy, water and transport projects worth about US$ 160 million that will be developed over the next three years using the resources that will be mobilised through the SIF. Of the total amount required, a funding gap of about US$ 105 million still remains to be filled. Contributors to the SIF include the AfDB, Islamic Development Bank, United Kingdom, and Italy.

The meeting also afforded representatives of donors the opportunity to express their support for Somalia. This will enable FGS to forge stronger partnerships and identify potential resourcing for its infrastructure agenda, which will ensure that delivery of infrastructure on the ground for the Somali people becomes a reality.

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