Second Additional Financing for Somalia Recurrent Cost and Reform Financing Phase III

The Second Additional Financing for Somalia Recurrent Cost and Reform Financing Phase III aims to enhance the Federal Government of Somalia's capacity to manage resources effectively and improve service delivery in health and education sectors.

This initiative builds on previous phases, focusing on transitioning from input-based to performance-based financing, thereby promoting fiscal sustainability reforms and ensuring wage bill sustainability at both federal and sub-national levels.

The project is designed to foster a more resilient and inclusive socio-economic environment in Somalia.

With a total project cost of US$ 65.00 million, the financing will support various Federal Member States, including Galmudug, Hirshabelle, Jubaland, Southwest, and Puntland.

The project is expected to close by December 31, 2026, and will involve consultant services to aid in its implementation.

This strategic investment underscores the commitment to strengthening the inter-governmental fiscal framework and enhancing overall governance in the region.