UNCDF has been present in Somalia since 1981, improving public service delivery and increasing local government access to financing infrastructure.
Today, UNCDF offers finance solutions for the poor that provide access to public and private resources, at domestic level, to reduce poverty and further support local economic development.
Through Local Development Finance, UNCDF is implementing a Joint UN Programme on Local Governance and Decentralized Service Delivery (JP-LGDSD) for Somalia, which develops local governance capacity, broadens civic awareness and participation, and supports local development initiatives by piloting a fund to support local development initiatives in Somaliland and Puntland.
The JPLG is comprised of five UN Agencies: UNDP, ILO, UNCDF, UN Habitat and UNICEF, and it was launched in 2008 and starting a new five-year cycle in 2018. UNCDF seed capital of $1M unlocked a total of over $15M in donor and state and local governments funding, including $2.4M from domestic resources.
In the timeframe 2011-2017, this capital was invested in 243 local public infrastructure projects deployed through Local Development Funds in 16 districts in Somaliland and Puntland covering a population of 3.3M.
From 2018, the Local Development Fund will be deployed in eight additional districts in the new Federal Member States with a population of about 1.5M.
Local revenue mobilization: 15 - 17% of the Local Development Fund is now co-funded by local and state governments, with plans to increase co-financing to 25% in the next two-three years to improve the sustainability and expansion of the Local Development Fund.
Local fiscal space: 30 - 50% increase in the local fiscal space due to a combined effect of increased local revenues, growing transfers from state governments, and development aid.
Chief Technical Advisor
Mohamed Shire Jama
Local Government Finance Specialist