Project Title: Second Economic and Financial Governance Institutional Support Project (EFGISP II)
- Project Amount: US $7.8 million
- Approval Date: December 2017
- Closing Date: December 2020
Somalia’s economic and financial governance systems continue to be faced with several challenges, including human resources constraints at the Federal Government of Somalia’s (FGS) Ministry of Finance, and line ministries in charge of infrastructure developments. Limited fiscal space due to weak revenue raising capacity, and the challenging security situation, makes it difficult for the public sector to attract skilled manpower. In turn, this constraints the FGS from delivering the much needed public services.
Given these challenges, the project aims to reinforce revenue mobilization, macroeconomic management, and financial accountability and transparency practices at the Ministry of Finance (the Lead Executing Agency) and the Ministries of Energy and Water Resources, Ports and Marine Transport, and Transport and Civil Aviation.
The overall development objective of the project is to strengthen macroeconomic management and enhance transparency and accountability in the use of public resources.
EFGISP II is organized under three components:
- Strengthening macro-economic planning and management in areas of domestic revenue administration, inland revenue, budget and debt management.
- Enhancing control, transparency and accountability in the use of public resources, covering strengthening basic public financial management functions (capital budgeting, accounting, internal controls and audit) in line ministries; (ii) reinforcing public procurement institutional frameworks; and (iii) building external and internal audit functions.
- Project management including day to day implementation of activities of the project
- Direct beneficiaries: (i) Ministry of Finance, specifically Budget, Procurement, Internal Audit, Debt and Aid Coordination, and Inland Tax Department; (ii) Office of the Auditor General; (iii) Ministry of Energy and Water Resources; (iv) Ministry of Ports and Marine Transport; and (v) Ministry of Transport and Civil Aviation.
- Indirect beneficiaries: Reinforced human and institutional capacities, good economic governance structures, and better domestic revenue mobilization practices will ultimately enable the Federal Government of Somalia to deliver better public services to the Somali people at large, and fight poverty.