Mogadishu, Somalia – In a significant move to strengthen Somalia’s financial systems for sustainable peace and resilience, the Federal Government of Somalia and the United Nations Development Programme (UNDP) have signed a letter of agreement to promote risk-informed and gender-responsive development financing.
The agreement was signed in Mogadishu by Minister of Finance, Bihi Egeh, and the UNDP Somalia Resident Representative, Lionel Laurens. This partnership marks a strategic effort to align Somalia’s public finance architecture with peacebuilding and resilience goals, especially in the context of climate and gender vulnerabilities.
“This agreement reaffirms our commitment to inclusive and sustainable financing that responds to the needs of all Somalis. By embracing risk-informed and gender-responsive approaches, we aim to build a financial system that is both resilient and equitable,” said Egeh.
Key components of the agreement include the launch of a Development Finance Assessment (DFA) and the formulation of a Financing Strategy tailored to Somalia’s national development priorities. These tools will help identify financing gaps, optimize resource mobilization, and support implementation of the National Development Plan (NDP-9) and the forthcoming NDP-10.
Discussions during the signing ceremony also touched on the recent CGE (Computable General Equilibrium) module scoping mission to Somalia, which is expected to provide valuable data-driven insights for macroeconomic modeling and policy formulation.
UNDP Resident Representative Lionel Laurens emphasized the importance of inclusive and evidence-based financing when he said, “Together with the Ministry of Finance, we are embedding risk analysis, gender equality, and long-term resilience into financial decision-making. This is crucial for building peace and prosperity in Somalia.”
The initiative reflects the broader goals of the UN’s Integrated National Financing Framework (INFF) and builds on previous progress made by Somalia in enhancing domestic revenue, strengthening financial governance, and engaging with international partners for post-debt relief development.
This collaboration comes at a time when Somalia is increasingly prioritizing inclusive governance, gender equality, and climate-resilient development to overcome the complex challenges posed by conflict, displacement, and environmental shocks.