Denmark announces new contribution of DKK 140 million to support governance and economic development in Somalia
During yesterday’s Somalia Roundtable at the margins of World Bank Group Spring Meetings, the Danish Government announced a commitment of DKK 140 million (USD 21 million) to support to accelerate poverty reduction and sustainable economic growth. Channelled through the World Bank’s Multi-Partner Fund (MPF), the contribution will provide resources to support effective and accountable governance, as well as private sector development and job creation.
Following the announcement, Denmark’s Ambassador to Somalia, Mette Knudsen, stated: “The Federal Government of Somalia has embarked on an ambitious economic and institutional reform agenda that Denmark as a long-term, committed partner would like to acknowledge and support. This new contribution aims at supporting effective and efficient institutions as a pre-requisite for socioeconomic recovery and sustainable poverty reduction.”
Denmark has supported Somali authorities through the World Bank’s Multi-Partner Fund (MPF) since 2015. Denmark’s new contribution comes after the first World Bank Country Partnership Framework (CPF FY 2019-2022 was approved in September 2018, reflecting the progress in economic reforms and institution building since 2013. Denmark will support increased quality and more inclusive public services, as well as improved access to finance, energy and jobs in Somalia.
“Denmark has been an important partner for the World Bank and Somalia” said Bella Bird, World Bank Country Director for Tanzania, Burundi, Malawi and Somalia. “Since our partnership with Denmark began, they have stressed the need to foster a collaborative relationship between the government and the private sector, and supporting an enabling environment for greater economic growth and inclusion. The latest contribution will allow for a scale-up in resources for private sector development.”
The MPF is one of the funding windows established under the Somalia Development and Reconstruction Facility (SDRF), the framework guiding implementation of the Somali compact. Administered by the World Bank, the MPF provides a platform for coordinated financing for suitable reconstruction and development in Somalia, with a focus on core state functions, economic growth, urban development and knowledge production
Denmark’s new support for the MPF is provided under Denmark’s Country Programme for Somalia for 2019-2023. It is a continuation of previous support of more than DKK 100 million between 2015 and 2018.