Somalia Productive Sectors Development Programme, Phase 1

Prolonged instability in Somalia has inhibited the economic growth potential of Somalia. The country’s 25-year conflict has seen the destruction of key economic infrastructure; government buildings, public facilities, roads, and transportation and communication networks have been destroyed or severely damaged. In this context, the lack of economic infrastructure that stimulates enterprise development and supports economic growth has resulted in limited investments in the productive sectors, effectively constraining the urban population to rely predominantly on an informal economy based on trade, transport, utilities, communication and construction, for income and service provision. Policies to stimulate economic growth are required on multiple fronts. Significant investments to close the country’s capital and infrastructure gap will be needed to increase economic growth in the medium term. Reforms in public financial management, strengthened governance, and improvements to the business environment are needed. To support diversification, policies should focus on addressing weaknesses that hinder entry into new lines of economic activity, such as the provision of infrastructure, security, the regulatory and institutional environment. Short- and medium-term policies to diversify Somalia’s economy could help stabilize the economy and enhance economic recovery. Through this programme UNIDO (lead), FAO and ILO wish to leverage their core area of expertise and experience in Somalia to support an enabling environment for suitable development of Somali productive sectors by: (1) Improving Somalia productive sector’s policy regulators’ capacities to create business environment that will lead to sustainable and inclusive economic growth and decent job opportunities; (2) Improve and establish infrastructure for productive sector growth and enhance the capacities of public and private institutions to stimulate sustainable production, inclusive economic growth and job creation in all productive sectors of the Somali economy, and particularly for youth and women in vulnerable areas of the country; (3) enhance skills and production capacities of farmers, fishermen, cooperatives and MSMEs to create sustainable job opportunities. This joint-programme aims at promoting interventions at macro, meso and micro levels of the Somali economy to promote investment in infrastructure and in the private sector, stimulate sustainable production, foster inclusive economic growth and job opportunities, particularly among youth and women. The overarching goal or ultimate objective of this programme is “Private and Public sectors are able to operate and sustain investments into productive sectors and infrastructures, enough to nurture an economic ecosystem able to create opportunities and jobs, that can sustain themselves also against internal and external shocks. Experience of ILO working in Somalia for a long period has shown that affirmative policies and regulations for worker rights is almost negligible. It is highly important at this stage that if simultaneous care for worker rights are not worked upon, an exploitative environment will result. With this view in mind, the ILO will provide technical assistance to the development of OSH policy and the re-establishment of the National Labour Court.

Project symbol

SOM/19/07/UND

Admin unit

CO-Addis Ababa

Start date

01/09/2020

End date

31/12/2023

Total allocation

263517

Total expenditure

Status

Closed

256267

Development Partners

Multi Partner Trust Fund Office, UNDP

Country/Countries

Somalia

Outcomes

Outcome 4: Sustainable enterprises for inclusive growth and decent work