Somalia, IFC sign pact to support private sector development

GOOBJOOG NEWS|MOGADISHU: Somalia has signed its first formal agreement with the World Bank’s development arm, IFC to support the country’s private sector with the view to creating jobs and boosting investment.

IFC said in a statement Monday the signing provides the framework for the World Bank institution to ‘advise on reforms designed to encourage private investment in the energy, ICT, and industrial infrastructure sectors and will help strengthen Somalia’s  business regulatory environment and increase the country’s trade transparency.’

Planning Minister Gamal Hassan whose ministry signed the agreement on behalf of the government said the support from IFC will be instrumental in addressing challenges the business environment in Somalia.

“IFC’s advisory support will help Somalia tackle bottlenecks in the business environment and enable us to attract more investment from both domestic sources and the Somali diaspora, which is a national priority,” said Hassan.

The initiative is supported by the IFC Private Sector Development in Somalia Trust Fund, which is funded by the United Kingdom Department for International Development, the Danish International Development Agency, and the European Union. The trust fund was established in 2017 to address barriers to private sector investment.

IFC regional director for Eastern Africa Jagun-Dokunmu hailed Somalia’s private sector noting the new agreement will improve access to good and services.

“Somalia’s public and private sectors have shown their strong commitment to reform and grow the economy, which will improve access to goods and services for the people of Somalia and create jobs. Through these agreements, IFC will support Somalia’s ongoing journey towards stability and development, a journey that will ultimately benefit all its citizens and the wider region.”