Mogadishu, Somalia – Somalia failed to use $527 million in development financing between 2023 and 2024, new World Bank figures show, deepening concerns about the country’s administrative capacity amid rising donor commitments.
The unspent funds include $287 million in 2023 and $240 million in 2024, according to the World Bank’s Country Portfolio Performance Review (World Bank, 2023–2024).
It is not only international institutions that are raising alarms. Local Somali investigative outlets and official government auditors have published multiple reports in the past 18 months identifying the same trend: a widening execution gap between approved projects and actual implementation.
Local Reports Mirror Donor Concerns
Several Somali media and oversight bodies have independently documented institutional delays, inconsistencies in public finance management, and underreported land administration issues.
- Office of the Auditor General (OAG)
The OAG’s 2024 National Financial Audit report found:
- Missing procurement records in multiple ministries
- Unverified expenditures
- Inconsistent treasury reporting
- Delays in project execution caused by documentation gaps
(Office of the Auditor General, 2024)
These findings align directly with the World Bank’s performance data.
- Mogadishu Daily Business
In a 2024 investigation, Mogadishu Daily Business reported that:
“Several ministries experienced a year-long lag between project approval and fund release, creating a backlog of unimplemented donor programs.”
The newspaper specifically highlighted halted infrastructure and urban water projects.
- Goobjoog Investigations Desk
Goobjoog Media published a 2024 investigative report outlining:
- Delays in World Bank procurement processing
- Repeated postponements in contract awards
- Stalled climate resilience projects due to missing feasibility studies
Their analysis concluded that the issue was “administrative competency, not political obstruction.”
- Hiiraan Online
Hiiraan Online’s economic desk reported in early 2024 that:
“Somalia risks losing future development financing unless execution improves. Donors are asking for stronger coordination between Planning and Finance.”
- Regional Reporting from Jowhar Times
Jowhar Times, covering Hirshabelle and Middle Shabelle, documented cases where:
- Land earmarked for public projects was transferred to private developers
- Project teams arrived at sites only to find the land already fenced
- No official record of the transactions appeared in local budget ledgers
These observations match global concerns about Somalia’s fragmented land administration system.
Systemic Under-Execution: A Multi-Ministry Problem
The underuse of $527 million reflects persistent constraints across several core government functions.
Treasury Management
Frequent delays in fund release discouraged contractors, slowed procurement, and pushed implementation windows beyond donor deadlines.
Procurement and Documentation
Local media have repeatedly highlighted incomplete or missing:
- Feasibility studies
- Environmental assessments
- Procurement bidding files
- Contract documents
These gaps often result in delays of 6–12 months in project readiness.
Coordination Between Planning and Finance
The structural separation between the institutions that plan and design projects and the Ministry of Finance that controls fund disbursement is one of the most cited bottlenecks by both international and local observers. Weak coordination means projects can be approved on paper but remain unfunded or delayed in practice.
Local Land Governance Issues Deepen the Problem
Local Somali press coverage in 2023–2024 documented a series of land-related irregularities, including:
- Unrecorded land transfers
- State assets leased without valuation
- Undeclared revenues from land sales
- Missing registry entries for public land
(World Bank, 2022–2023; Hiiraan Online, 2024; Jowhar Times, 2024)
Although these issues do not automatically indicate wrongdoing, they highlight an information and capacity deficit that complicates development planning. Public projects cannot proceed without clear land ownership records, and missing documentation often forces donors to suspend or delay construction phases.
The Macroeconomic Stakes
Somalia’s economic recovery relies on converting donor financing into actual capital formation. Execution delays weaken:
- Infrastructure development
- Investor confidence
- Fiscal credibility
- Job creation
- Long-term resilience planning
The IMF warns that “execution delays undermine Somalia’s macroeconomic stability objectives,” particularly as the country pursues debt relief milestones and broader reform targets (IMF, 2024).
Financial Analysts See a Competence Challenge, Not a Funding Problem
Local and international analysts consistently emphasise the same point: Somalia does not lack financing; it lacks functional systems to deploy it.
A development economist at SIMAD University told The Somalia Observer:
“The bottleneck is technical. Donor resources are available. What is missing is a capable administrative pipeline.”
Reform Recommendations Gaining Momentum
Experts recommend several reforms that are widely supported by both international institutions and Somali civil society:
- Joint Planning–Finance Execution Units
- Coordinated clearinghouses for donor-funded projects to align planning, budgeting, and disbursement.
- Digitisation of Procurement, Treasury, and Land Systems
- Reducing paperwork delays, improving record-keeping, and increasing transparency.
- Strengthening Civil Service Technical Cadres
- Professionalising procurement officers, financial controllers, and project managers through training and merit-based recruitment.
- Quarterly Public Budget Execution Bulletins
- Regular publication of execution data, as recommended by local watchdog groups and the Auditor General, to improve accountability.
- Centralised Public Land Registry System
- A unified registry to prevent irregular transfers and ensure that project land is clearly documented before implementation.
A Nation Hampered by Administrative Drag
Somalia’s development prospects depend not only on donor commitments but on the state’s ability to execute.
Over $527 million in unspent funds represents:
- Schools not built
- Water systems not installed
- Flood defences not constructed
- Jobs not created
- Infrastructure not delivered
As Somalia pursues debt relief and attempts to strengthen market confidence, improving administrative competency may be the most important reform of all.
APA REFERENCES
Hiiraan Online. (2024). Economic desk reports on Somalia’s development execution challenges.
Goobjoog Media. (2024). Investigative report on procurement delays in donor-funded projects.
Jowhar Times. (2024). Regional land administration and development reporting for Hirshabelle.
Mogadishu Daily Business. (2024). Analysis of donor-funded development delays in Somalia.
International Monetary Fund. (2024). Somalia: 2024 Article IV consultation—Staff report. IMF.
Office of the Auditor General of Somalia. (2024). Annual national financial audit report. Mogadishu: OAG.
World Bank. (2022–2023). Public sector governance assessment for Somalia. World Bank Group.
World Bank. (2023). Somalia open budget and transparency diagnostic. World Bank Group.
World Bank. (2023–2024). Somalia country portfolio performance review. World Bank Group.