| Project Detail |
The proposed operation is aligned with Somalias NDP-9, 2020-2024,and Bank Group Interim Country Strategy Paper (I-CSP) for Somalia, 2022-2024.It is particularly aligned to Priority Area II of the I-CSP, which emphasizes capacity building for a stronger state and inclusive economy. The project aims to support and build a robust and stable financial sector over a three-year period (July 2024-July2027), based on the recommendations from a diagnostic study conducted by the Bank in 2021 and the Somalia Country Diagnostic Note 2023. The overarching goal is to propel Somalia towards a path of peace, security, and sustainable economic growth. The project also aligns with the Transitional Federal Government’s macroeconomic structural adjustment reforms, targeting macroeconomic stability. The project focuses on capacity building to foster a robust state and inclusive economy and underpin the Government’s efforts in building institutional and human capacities essential for economic development.
Project Objectives
The project objective is to Strengthen Somali financial institutions to increase financial resilience, financial inclusion, and private sector investments in financial services, aligning them with global standards and facilitating connections with global networks.
Beneficiaries
The direct beneficiaries of this project include pivotal institutions like the CBS, the SDRB and the FRC. Indirectly, the private sector stands to gain significantly from the strengthened financial institutions and a functioning financial ecosystem. Ultimately, the project is expected to benefit all Somali citizens by establishing a resilient central bank and a stable financial sector capable of enduring economic shocks and providing necessary credit to stimulate private sector growth. This, in turn, will drive economic expansion. The ultimate result is increased resources available to finance the provision of private sector, investments in development programs, enabling recovery and relieving poverty. To define the projects proposed scope, consultations were undertaken with key stakeholders, including the Director General of the MoF and senior officials of the beneficiary departments of the project. Discussions were held with each of the main beneficiaries (CBS, SDRB and FRC) to discuss the challenges and determine the specific areas of intervention and related Anti-Money Laundering and Countering the Financing of Terrorism Governance and Compliance Regulations as explored by FSDS. |
