SOMALIA - Financial Sector Development Project (FSDP) — Somalia

Overview

The proposed operation is aligned with Somalia's NDP-9, 2020-2024,and Bank Group Interim Country Strategy Paper (I-CSP) for Somalia, 2022-2024.It is particularly aligned to Priority Area II of the I-CSP, which emphasizes capacity building for a stronger state and inclusive economy. The project aims to support and build a robust and stable financial sector over a three-year period (July 2024-July2027), based on the recommendations from a diagnostic study conducted by the Bank in 2021 and the Somalia Country Diagnostic Note 2023. The overarching goal is to propel Somalia towards a path of peace, security, and sustainable economic growth. The project also aligns with the Transitional Federal Government’s macroeconomic structural adjustment reforms, targeting macroeconomic stability. The project focuses on capacity building to foster a robust state and inclusive economy and underpin the Government’s efforts in building institutional and human capacities essential for economic development. The project contributes to climate finance, with 5% of the total approved amount dedicated to adaptation.