Project profile — IMF Somalia Country Fund Phase II

• Somalia (100.00%)

• Public finance management:
Public finance management (15111) (33.00%)
Macroeconomic policy (15142) (34.00%)
Tax policy and administration support (15155) (33.00%)

• Participatory development and good governance (significant objective)
• Gender equality (significant objective)
• Children's issues (not targeted)
• Nutrition (not targeted)
• Disaster Risk Reduction(DRR) (not targeted)
• Climate change mitigation (not targeted)
• Urban issues (not targeted)
• Climate Change Adaptation (not targeted)
• Disability (not targeted)
• Youth Issues (not targeted)
• ICT as a tool for development (not targeted)
• Trade development (not targeted)
• Environmental sustainability (cross-cutting) (not targeted)
• Biodiversity (not targeted)
• Desertification (not targeted)
• Indigenous Issues (not targeted)

This project aims to enhance Somalia’s capacity to implement sound macroeconomic policies, which in turn helps Somalia reach debt relief and finance its’ national development plan, laying the foundations for reduced poverty and inclusive development. This project builds on the gains achieved and lessons learned during Phase I of the Somalia Country Fund. This project provides capacity development to the federal Government of Somalia in five areas: (1) macroeconomic frameworks and policies; (2) central bank management and operations; (3) tax and customs policy modernization; (4) public financial management, including investment and debt management and gender-based budget analysis; and (5) production and dissemination of macroeconomic data, including sex-disaggregated data. This project works to deliver capacity development via a combination of virtual seminars, short-term expert visits, technical assistance missions, peer-to-peer learning, trainings in “third-country” locations, on-line webinars and courses, and mentorships.

The expected outcomes for this project include: (1) enhanced technical capacity of Somali officials; (2) strengthened key institutions; (3) enhanced macroeconomic, fiscal, and customs policies and processes; and (4) improved fiscal and macroeconomic decision-making based on national data.

Results achieved at the end of the project (March 2023) include: (1) conducted 25 capacity-building missions on revenue mobilization, public financial management, supervisory capacity of the central bank, and macroeconomic and financial statistics. This strengthened key institutions in tax policy, public financial management, banking regulation and supervision, governance, accounting, and statistics. It also enhanced the technical capacity of Somali Finance and Central Bank officials, and contributed to Somalia’s completion of the Heavily Indebted Poor Countries process with expected achievement in 2023; (2) the International Monetary Fund provided in-depth support to introduce new modern income tax law that resulted in improvements in the draft legislation; (3) the International Monetary Fund supported improved legislation for the extractive industry; and (4) the International Monetary Fund supported Somali officials to prepare a credible, transparent budget scheduled to go to Parliament in June 2023.

• Proactive disclosure