African Development Bank Group Sanctions $13.3M Grant
Somalia’s Fiscal Revolution: African Development Bank Group’s $13.3M Grant to Elevate Revenue & Expenditure Management
ABIDJAN, Ivory Coast, / AGN/ — In a pivotal move to reshape Somalia’s fiscal landscape, the Board of Directors of the African Development Bank Group approved a $13.29 million grant on 2 October 2023. This strategic investment is part of the Institutional Support for Economic Governance Project, aiming to amplify Somalia’s domestic revenue streams and refine public expenditure management.
Central to this initiative is the provision of expert technical assistance, comprehensive training modules, and innovative tools. These resources are meticulously curated to enhance Somalia’s revenue avenues and instill a culture of robust institutional competence across the federal government and Federal Member States. Furthermore, the project champions the principles of inclusive governance and accountability, laying the foundation for sustainable economic growth.
A deep dive into the grant’s composition reveals a significant $9.31 million allocation from the African Development Fund, the Bank Group’s dedicated financing arm for low-income nations. Complementing this is an additional $3.98 million sourced from Pillar 1 of the Transition Support Facility, a platform tailored for fragile states.
The project’s emphasis on institutional capacity-building is evident. It targets the optimization of tax collection processes, ensuring Somalia’s potential to channel funds into transformative development projects is realized, and fostering fiscal stability.
Beneficiaries of this transformative initiative span a wide spectrum. From the financial echelons of the federal government, including regions like Somaliland Galmudug, Hirshabelle, Jubaland, Puntland, to South-West, the impact promises to be far-reaching. Key federal beneficiaries encompass the Revenue Department, Debt Management Department, Budget Directorate, Public Procurement Department, Office of the Accountant General, Internal Audit Department, Ministry of Transport and Aviation, Ministry of Ports, and the Parliament.
Distributed by APO Group on behalf of African Development Bank Group (AfDB)
