Somalia - Economic and Financial Reforms Support Program (EFRSP)

The proposed operation is a grant to the Federal Republic of Somalia of UA 89 million from pillar I of the Transition Support Facility (TSF) from ADF-14 resources, to finance the Economic and Financial Reforms Support Program (EFRSP). The Program complements Somalia’s efforts to advance its development agenda (consolidate peace, accelerate reductions in poverty and income inequality, catalyze needed financing for transformative growth generating infrastructure). It consists of two broad components namely: (i) strengthening domestic revenue mobilization and public financial management; and (ii) advancing financial sector development. The operation has been designed in anticipation of Somalia’s arrears clearance, a process being undertaken by the United Kingdom (UK). It takes into account the need for the Bank to step up its re-engagement with Somalia, post-arrears clearance, and to support the country’s on-going economic and financial reforms. The implementation of the reforms being supported by the program is expected to lead to high, sustainable and inclusive growth for Somalia. This operation is strongly coordinated with those of the WB and IMF.