The FY24-28 CPF is aligned to Somalia’s National Transformation Plan (NTP) and is informed by core analytical and advisory services (ASA), including the 2023 Systematic Country Diagnostic (SCD) update, 2023 Somalia risk and resilience assessment (RRA), 2023 Country Private Sector Diagnostic (CPSD), and 2023 climate risk assessment.   The previous CPF (FY19-23) scaled-up assistance to Somalia to support core government systems, private sector-led growth, and resilience, after Somalia reached the decision point of the heavily indebted poor countries (HIPC) initiative and normalized relations with IDA.

The overarching goal of the current CPF is to continue to assist Somalia in building a more stable, visible, and legitimate state capable of providing basic services, fostering inclusive private sector-led growth, and building resilience, with a view to restoring the social contract and enabling Somalia’s emergence from fragility, conflict, and violence (FCV).

The CPF is supporting three core outcomes: 1) Inclusive, private-sector-led job creation and economic growth; 2) Enhanced human capital; and 3) Greater resilience to climatic and other shocks. Initial focus is on consolidating and deepening engagement in sectors that benefited from the recent IDA scale-up, while selectively investing in new areas and assessing scope for new sector engagements for the CPF’s later years.

The IFC is supporting upstream reforms and undertaking advisory engagements to lay the groundwork for investments. MIGA, which issued its first guarantee for a solar energy project in FY23, is looking to replicate and scale up green energy investments. The CPF is supporting an enhanced RMF and adhere to “do no harm” principles.

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