Somalia’s two-year (2014-15) Economic Recovery Plan (ERP) provides a roadmap for Somalia’s transition from emergency relief to economic recovery by placing among its priorities rapid upgrading of state capacity and rapid rehabilitation of infrastructure (including ports) as well as financial sector regulation and supervision
ENABLING ECONOMIC GROWTH (PSG IV)
Since early 2014, the bank accounts of the majority of Somali (commercial) remittance providers in the UK, US and Australia (and to a lesser extent in Scandinavia) have been closed. This is part of the broader global “de-risking” discussion. The particular context of Somalia – with a lack of a formalized financial sector and a quantifiable terrorist threat – intensifies the risk situation and affects the decisions taken by financial institutions.
Somalia’s perceived petroleum potential holds potential for revenue streams that could contribute to the inclusive economic development of the country. A recent assessment requested by the Federal Government of Somalia re-confirmed that addressing the political challenges of petroleum development is a prerequisite to peace and security and that the international community can play a facilitating role. This project responds to a direct request made by the Minister of Petroleum and Mineral Resources (MPMR) for programmatic support for the petroleum sector
The ICT sector, especially mobile communications, has the potential to be a major contributor to the national economy. It was singled out as a priority area for funding in the Economic Recovery Plan, 2014-16, highlighting investment in productive sectors has been prioritized in both the Somali Compact and the Somaliland Special Arrangement as essential for economic growth, employment generation, and poverty reduction