Multi-Partner Fund for Somalia (MPF)

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

World Bank's Multi-Partner Fund (MPF) supports Somalia's stabilization and peacebuilding by strengthening Somalia's governance and the management of the state's revenues (including taxation), as well as by reviving the country's economy and the private sector, to allow increased state revenues through taxation and to provide resources for extended and improved public services. MPF is part of the Somalia Development and Reconstructions Facility – SDRF, which is a jointly agreed facility for the peace- and state building of Somalia. Finland is also committed channeling her funds through the SDRF. The Fund operates in close partnership with the Federal Government of Somalia, as well as with the donors and international agencies in the aid infrastructure of Somalia Development and Reconstruction Facility (SDRF). At the project level, the MPF funded projects focus around four thematic priority areas, which include government's key functions; productive sectors and employment; infrastructure development; as well as management of natural resources and resilience. For example, the Fund can support the payment of Somalia's government officials' salaries and improve the public financial management systems; boost the productivity and the value chains of potential productive sectors and improve youth employment (allowing also greater tax revenues); improve the infrastructure, and therefore improve the productivity, among else, in the energy sector; and strengthen the resilience of selected groups and professions, such as cattle herders/pastoralists. According to World Bank reports the Federal Government of Somalia has made progress in developing institutions, reforms and improving public finance management. For instance, from 2016 to 2017 the domestic revenue collection increased with 30 million, and civil servants' salaries paid through the Federal Government from 67 % to 100 %. The Fund also supports one of Finland's priority sectors, the Health sector, by strengthening health governance's salary payment and financial management systems, as well as by supporting the governance capacity in the sector. Finland supports the MPF over the period of 2016-2019 with 4MEUR, which is disbursed as follows: 2016: 2MEUR, 2018: 1MEUR, 2019: 1MEUR. In addition to the 1MEUR that will be disbursed in 2019, from 2019 to 2022 Finland will support the MPF with 8,1MEUR, which will be disbursed as follows: 2019: 1MEUR, 2020: 2,5MEUR, 2021: 3,1MEUR, 2022: 1,5MEUR.