Policy paper

UK–Somalia development partnership summary, July 2023

Published 17 July 2023

Introduction

The Strategy for International Development (IDS) places development at the heart of the UK’s foreign policy. It sets out a new approach to development, anchored in patient, long-term partnerships tailored to the needs of the countries we work with, built on mutual accountability and transparency. This approach goes beyond aid and brings the combined power of the UK’s global economic, scientific, security and diplomatic strengths to our development partnerships. Our 4 priorities are to deliver honest, reliable investment, provide women and girls with the freedom they need to succeed, step up our life-saving humanitarian work, and take forward our work on climate change, nature, and global health. The Integrated Review Refresh (IR23) reiterates that sustainable development is central to UK foreign policy and sets out how the UK will go further and faster on development to reduce poverty and reinvigorate progress towards the Sustainable Development Goals (SDGs). This Country Development Partnership Summary details how the IDS and IR23 will be put into practice with Somalia.

Country context

Our development partnership with Somalia (including Somaliland) plays a critical role in the stability of the country and wider region. The current government in Mogadishu is focused on the issues the UK cares about most: tackling terrorist group al-Shabaab, responding and building resilience to climate related humanitarian crises, state-building, tackling inequality through improved health and education access and building a strong and resilient private sector. On 25 April 2013 the UK became the first European country to re-open its embassy in Mogadishu since the formation of the Federal Government of Somalia (FGS) and remains the only Western country with a permanent presence in Somaliland; both demonstrate our enduring commitment to Somalia.

Real progress is being made in Somalia. A strategic location in the Horn of Africa, untapped natural resources, and a large young and entrepreneurial population provide opportunities for growth. With international support, the institutions needed to tackle the challenges faced by Somalia are slowly being built. Progress is being made in the fight against terrorist group al-Shabaab. Indirect parliamentary and presidential elections were held at the national level in 2016 and 2022. In 2017 and again in 2022 famine was averted. The country reached Highly Indebted Poor Countries (HIPC) decision point in March 2020, paving the way for World Bank financing which has tripled from $200 million in 2020 to almost $600 million in 2022 of much needed International Development Assistance (IDA), a major achievement that was ‘championed’ by the UK. A ninth Somali National Development Plan was adopted in January 2020, setting out the country’s 4-year approach to development and the achievement of the sustainable development goals. In Somaliland, the Berbera Corridor, a trade route between Somaliland’s Berbera Port and Ethiopia, is almost complete and has the potential to increase Somaliland’s GDP by 6% by 2035, support 53,000 jobs, boost regional trade, and provide significant opportunities for UK businesses.

However, at current estimates of economic growth (4.5%) and population growth (3%) it will take Somalia over 100 years to reach neighbouring Kenya’s current level of development. The country remains one of the world’s poorest: close to 70% of the population live on less than US$1.90 a day. Only 11% of children under the age of one are fully immunised. Current statistics indicate that 70% of school-age children are not in education. Somali girls and young women face daunting challenges: on average, 9 in 10 girls are victims of female genital mutilation (FGM), and 35% are married before the age of 18. These realities restrict opportunities for girls to learn. Fewer than 1 in 5 girls attend school. As a result of this childhood inequality, only 1 in 10 women are literate compared to 1 in 4 men.

Somalia is hugely exposed to the climate emergency. It is the second most vulnerable country in the world to climate change, behind only Yemen (Fragile States Index, 2022). Conflict and disease, climatic and environmental factors are driving record levels of protracted, humanitarian need: the UN estimated that at the start of 2023 over 8.25 million people required humanitarian assistance – more than half the population, including approximately 1.8 million children who are expected to be acutely malnourished by the end of the year, There are 2.9 million Internally Displaced People (IDPs), driving one of the highest rates of urbanisation in Africa. 1 in 4 city dwellers is thought to be internally displaced. This is dramatically changing the economy, away from agriculture, and creating new development needs.

Economic growth is insufficient to reduce poverty and address development needs in Somalia and Somaliland. The state’s ability to intervene remains limited given the tiny public purse (3 per cent of GDP, one of the lowest in the world). Drought and higher global commodity prices, because of Russia’s war on Ukraine, are expected to propel inflation to 9%, further exacerbating humanitarian need. Access to much needed climate adaptation financing is proving elusive; annual flows are estimated at $321 million against requirement of $5.55 billion (ODI). Reaching HIPC completion point (estimated for November 2023), the final step in Somalia’s debt relief journey, would be a major achievement, freeing up resources for investment in key development sectors. However, this is not a given. Developing strong Public Financial Management (PFM) practices will be critical for Somalia to finance its budget in the long term and avoid falling back into debt in the future.

The political settlement is fragile and the threat from al-Shabaab remains persistent. Despite positive progress to achieve a political settlement through the National Consultative Council, the forum which brings together Federal Government and Federal Member State leaders, significant challenges remain. Somalia’s constitution is still in draft, with power and resource sharing across local and national government’s remaining opaque. Despite notable successes in recent months in countering Al-Shabaab, the group continues to control significant swathes of territory, and much bigger battles lie ahead in the struggle to eradicate the group. Somaliland’s greatest achievement has been its relative stability. Somaliland has avoided much of the extremist violence that has affected Somalia, but the current conflict in Las Anod, its porous border and tensions across the political landscape are creating instability.

Why and how: the UK’s development partnership with Somalia

Our overarching strategy aims to reduce current and future threats to UK interests, enable Somalis to lead safer, healthier, and less vulnerable lives, and support prosperity and reduce risks to stability across East Africa. We will achieve this by working in closer alignment with the Somali Government and with international partners to ensure better mechanisms for co-ordination and mutual accountability, including through the Development Cooperation Forum which was announced by the Government of Somalia as part of a planned new Aid Architecture in May 2023. Our priorities are as follows:

The UK Government supports a Somali-led and owned Counter Terrorism Strategy, working closely with key international partners to degrade and defeat al-Shabaab. This includes support to security sector reform, developing police forces and security force assistance.  We support the inclusive political agenda through the Somalia Stability Fund (SSF) programme. Through this programme, and in partnership with the FGS, and conducted initial research and consultation on women’s participation in politics, which will inform long-term programme design from July 2023. We will ensure our work strives for better inclusion of women and minorities in political processes and keep advocating for improvements to human rights and media freedom, which are increasingly under pressure, including in Somaliland.

The UK plays a key role as a critical friend on all economic governance issues in Somalia, promoting resilient and productive economies, working to strengthen public financial integrity, make progress on fiscal federalism and promote long-term financial planning that centres on sustainable green growth and adaptation to climate change. As Somalia’s Debt Relief Champion, the UK will support Somalia to build its financial management institutions and reach HIPC completion point, using our position and influence on the International Financial Institution (IFI) boards and other forums to shape policy and interaction with the FGS. We will continue to work with key private financial institutions to improve compliance and access to the global financial system, as well as protect against terrorist financing risks. Public Resource Management in Somalia (PREMIS) is our flagship programme delivering customs modernisation and PFM, we have supported increased revenue collection by Somali customs from £75.3 million to £84 million, critical to support increased development expenditure. Our aim is to support inclusive economic growth, improving the business environment, building critical infrastructure, supporting key sectors, and improving access to finance. This will be a focus of our targeted capital investments in the coming years. In Somaliland, the UK will continue to support the construction of infrastructure, such as roads, water systems and agricultural facilities and building the core capacity of Somaliland’s institutions through the Somaliland Development Fund (SDF), as well as ongoing investments in support of BII’s ‘Africa Ports’ partnership with Dubai Ports World.

Climate change is a clear and strategic risk to Somalia’s development. The UK therefore prioritises management of climate risk at all levels including the predicted impact of climate change in macro-economic planning and ensuring potential weather and climate shocks are factored into all our programming. Alignment with Somalia’s own NDC and adaptation plans has been critical, including UK efforts to mobilise additional climate finance for Somalia to meet the vast needs. There is no UK support to fossil fuels. In partnership with USAID, Government, and the private sector, we are supporting a more diversified and climate-resilient private sector particularly in the agricultural, livestock and fisheries sectors.

We will champion human development through health and education ODA programming and dedicated UK technical advisory support, with a particular focus on women and girls throughout. Somalia will remain a UK flagship country for Ending Preventable Deaths of mothers, new-borns and children and will ensure access to health services for millions of Somalis, working with other partners (World Bank, Gavi, the Global Fund) to support the incremental building of the health system in Somalia.  We have supported women and girls to unlock their future potential and protect them against violence. Our flagship health programme (Better Lives) will provide critical, frontline maternal and new-born services. Protection of women and children in crisis will be a core focus of our humanitarian programming and engagement working with Women’s Rights Organisations, and UK support for access to quality education will focus on the most marginalised girls. Gender equality will be mainstreamed throughout all our programming, and we will ruthlessly prioritise to ensure we reach the most marginalised and vulnerable in all we do. In the last financial year, the UK supported almost 1 million outpatient appointments in health facilities across the country, including for new and expectant mothers and children. Over 39,000 women and girls were supported with sexual and reproductive health services, as well as support for victims of gender-based violence and 26,000 girls received access to basic education.

We will work to build the resilience of the people and communities most vulnerable to conflict, climatic and environmental risks, support health system improvement, and continue to support principled life-saving humanitarian assistance and protection for those in greatest need. We will prioritise UK ODA and technical advisory expertise on preventative work to build resilience in core areas where we can have the greatest impact, including durable solutions for displaced populations, strengthening rural resilience and natural water resource management, shock-responsive social protection, and disaster risk financing and insurance. In parallel, we will continue to be a significant, technical, and principled humanitarian donor. We have provided life-saving humanitarian assistance, with cash vouchers and food aid for 2.5 million) people and improved sanitation and access to water for 4.5 million since 2018.

Who we work with

The UK has strong partnerships with several actors in Somalia and Somaliland. We work closely with the UN and World Bank, providing funding and supporting strategic planning priorities. UK-backed evidence and analysis via the UN is now the foundation of early warning systems, enabling a smarter response to crises. Through our programmes, we have multi-partner agreements with the US, EU, Denmark, the Netherlands, Qatar, Saudi Arabia, and Sweden, all of which amplify the impact of our bilateral support.

Food security response in partnership with KSrelief

In 2023, the UK in Somalia launched a pioneering new partnership with KSrelief on food insecurity in Somalia to respond to the current protracted drought. This is the first of its kind. Both donors committed $2 million to the World Food Programme for the food security response. The UK supported multi-purpose cash assistance, and KSrelief food assistance. Together this joint funding effort sought to reach over 130,000 highly vulnerable Somalis.

Key programmes

The UK ODA portfolio in Somalia has adapted to a changing context and priorities. This has led to an increase in investment and resilience focussed programmes, whilst maintaining a critical life-saving humanitarian aid and core governance work.

The Unlocking Prosperity in the Horn of Africa programme has worked alongside the Abu Dhabi Funds for Development (ADFD) to develop the Berbera Corridor (completed 2022), alongside a landmark $700 million British International Investment (BII) Africa Ports partnership with Dubai Ports World that included a quay extension to the Berbera Port and a Free Trade Zone. The programme facilitated the operationalisation of 2 markets on both sides of the Somaliland and Ethiopia border at Tog Wajaale, construction of the Berbera fish market. Critically it has reduced transport times, adding significant economic impact and already improving transport of humanitarian items into Ethiopia.

Somalia Stability Fund (SSF) III will support more inclusive political agreements, addressing historic grievances that have undermined trust and contributed to the ongoing democratic deficit in Somalia. It will do this by creating the necessary space to establish democratic processes at the sub-national and national levels; building more representative and effective local governance structures; and investing in efforts to strengthen the social contract between citizens and the state to ensure that new institutions are more accountable. The previous programme (SDF II) funded over 190 investments, from infrastructure (ministry buildings, airstrips, roads, clinics) and economic development (value-chains, vocational training, access to finance) to governance and peacebuilding (support to democratic processes, support to women candidates, local peace processes and district council formation), delivered through 55 Somali private sector and civil society organisations, building their capacity in the process and delivering investments in 67 of 72 districts in all 5 of Somalia’s Federal Member States (FMS).

Humanitarian Assistance and Resilience Building in Somalia (HARBS) meets the urgent humanitarian needs of conflict and disaster affected populations through provision of life-saving assistance; contributes to resilience building for vulnerable populations; supports durable solutions for displaced communities; and contributes to the overall effectiveness of the humanitarian response. The programme supports a range of partners including the UN and NGOs.

In response to the current drought, the UK has worked to leverage its leadership role in Somalia to secure strategic partnerships. Under the HARBS emergency programme, from September 2022 to September 2023, the UK levered £7 million to secure an additional USD$12 million investment through the US ($8 million) and QFFD ($4 million) for the Building Resilient Communities in Somalia (BRCiS) consortium. In March 2023, these UK, US, and Qatari investments were combined under one programme ensuring the delivery of cash assistance to more than 16,000 people; basic health services to 30,000 individuals; and access to latrines and sanitation or more than 8,000 people. The UK is working directly with the US and Qatar, to ensure the programme is closely monitored for effectiveness and is providing technical expertise through in-country humanitarian advisors.

This work builds on almost a decade of UK support to this critical NGO consortium in Somalia. In this period, BRCiS has established itself as a leader in resilience programming and evolved from a new partnership to a multi-donor investment of approx. $232 million.

Better Lives for Women and Girls

The Better Lives for Somali Women and Children (Better Lives) is a 6-year programme implemented by UNICEF and partners that seeks to reduce high rates of preventable death, combat cross-border threats of infectious diseases, and create lasting health benefits for some of the world’s most vulnerable women and children. Better Lives will work with the Government of Somalia (including Somaliland) Ministries of Health (MoH) to use the entry of the World Bank and its Global Financing Facility (GFF) to create a more efficient coordinated approach with key partners, including the Global Fund to fight AIDS, TB and Malaria (GFATM) and Gavi, the Vaccine Alliance to achieve the following specific objectives including extending access to  reproductive, maternal and child health services effectively promote healthy behaviours and demand for services, strengthening the health system at all levels including governance  and efficient resource management and delivery.

Case study

In 2022 to 2023 Better Lives partners pivoted to respond to the protracted drought in Somalia whilst the multi-year development programme was being agreed with Government. This year almost 1 million people have attended outpatient appointments, including new and expecting mothers and children. Over 129,000 children have been vaccinated, 145,000 women have received antenatal support, and over 91,000 have delivered babies with skilled birth attendants as a result of UKaid. These health interventions have had a transformative impact on women’s lives, in a country where having a baby is incredibly high-risk. It has also reached over 123,000 children with treatment of severe acute malnutrition – without this treatment these children would likely have died.

Other programmes in Somalia Network portfolio include:

• human development: Gavi, Global Fund Girls Education Challenge (GEC), Global Partnership for Education and Education Cannot Wait, Supporting the Africa-led Movement to End Female Genital Mutilation
• resilient and productive economies: Somaliland Development Fund (SDF2), Unlocking Prosperity in the Horn of Africa, Green Urban Growth, Public Resource Management in Somalia (PREMIS 2), Supporting Inclusive Growth in Somalia.
• security and stabilisation partnerships: Somalia Security and Justice Programme II
• others: Somalia Monitoring Programme III (SMP3), CSSF Somalia

Monitoring, evaluation, results, and learning are a key component of our work. Through the Somalia Monitoring Programme, we ensure a thorough assessment of impact and results. The programme also strengthens the capability of national and federal governments, to ensure use of evidence in policy making. Monitoring, evaluation and learning providers are utilised within several programmes, ensuring assessment of results, impact, and value for money. In all our work, there is significant effort to remain compliant with Public Sector Equality Duty requirements in eliminating prohibited conduct under the Equality Act 2010. Further, we have invested in mainstreaming gender equality, and social inclusion considerations, which also includes ‘Do No Harm’ considerations in the delivery of programmes.

Financial information

Initial allocations have been set internally to deliver the priorities set out in the International Development Strategy (May 2022) and the Integrated Review Refresh 2023, based on the FCDO’s Spending Review 2021 settlement.

The department’s spending plans for the period 2022 to 2023 to 2024 to 2025 have been revisited to ensure HM Government continues to spend around 0.5% of Gross National Income (GNI) on ODA. This was in the context of the significant and unexpected costs incurred to support the people of Ukraine and Afghanistan escape oppression and conflict and find refuge in the UK, and others seeking asylum. The Government provided additional resources of £1 billion in 2022 to 2023 and £1.5 billion in 2023 to 2024 to help meet these unanticipated costs. The Government remains committed to returning ODA spending to 0.7% of GNI when the fiscal situation allows, in line with the approach confirmed by the House of Commons in July 2021.

The country development partnership strategies include the breakdown of programme budgets allocated to individual countries for 2023 to 2024 and 2024 to 2025. These allocations are indicative and subject to revision as, by its nature, the department’s work is dynamic. Programme allocations are continually reviewed to respond to changing global needs, including humanitarian crises, fluctuations in GNI and other ODA allocation decisions.

It should be noted that these figures do not reflect the full range of UK ODA spending in these individual countries as they do not include spend delivered via core contributions to multilateral organisations, or regional programmes delivered by the FCDO’s central departments. Other UK Government departments also spend a large amount of ODA overseas. Details of ODA spent by other UK government departments can be found in their Annual Report and Accounts and the Statistics for International Development.

FCDO ODA allocation

Allocated ODA budget financial year 2023 to 2024: £90.1 million

Indicative ODA budget financial year 2024 to 2025: £135 million

2022 to 2023 bilateral ODA spend (£76.4 million)

11% of the 2022 to 2023 ODA spend was marked as being principally or significantly focused on promoting gender equality and about 5% is marked as being principally or significantly focused on disability inclusion.

2022 to 2023 bilateral ODA budget distribution

Figure 1. 2022 to 2023 Bilateral ODA Budget Distribution: Humanitarian, 69%; Climate, 10%; Investment, Infrastructure, and BII, 9%; Reducing Conflict and Building Security, 4%; Women and Girls, 6%; Economic and Social Foundations, 2%.

2023 to 2024 bilateral ODA budget distribution

Figure 2. 2023 to 2024 Bilateral ODA Budget Distribution: Humanitarian, 58%; Reducing Conflict and Building Security, 14%; Women and Girls, 11%; Climate, 7%; Economic and Social Foundations, 5%; Global Health, 3%; Investment, Infrastructure and BII, 2%.

Centrally managed programmes (CMP)

We are directly engaged in the delivery of the Girls Education Challenge (GEC - £10.8 million). Two other education programmes we were closely engaging with came to an end in 2022 to 2023; Global Partnership for Education (9.3 million), and Education Cannot Wait. We currently do not have data for the full CMP investment in Somalia for both 2023 to 2024 and 2024 to 2025.