FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo

Jul 27 , 2019
By FASIKA TADESSE ( FORTUNE STAFF WRITER )

Last year, the real GDP growth of Somalia was an estimated 2.9pc. Classified as being in debt distress, Somalia has a debt estimated at 65pc of GDP.

The African Development Bank (AfDB) Group approved a 28.9-million-dollar grant for Somalia in recognition of its promising progress toward stabilisation.

Approved on July 19, 2019, by the board of directors of the Bank, the grant will be used to finance water, sanitation and road infrastructure designed to improve livelihoods in Somalia and boost the resilience of the region.

Out of the total budget, nearly 12 million dollars is from the Bank’s Transition States Facility, which was established in 2008 to address weaknesses in the performance-based allocation of resources and has raised two billion dollars so far. The funding is designated to be used for an urban water and sanitation project for the cities of Kismayo and Baidoa.




The project is expected to boost access to potable water and improved sanitation in Jubbaland and the southwestern states of Somalia. It is expected to benefit around 200,000 urban and peri-urban people of Somalia, which has been affected by continuous drought, three decades of civil war and where half of the population lives in poverty.

Last year, the real GDP growth of Somalia was an estimated 2.9pc. Classified as being in debt distress, Somalia has a debt estimated at 65pc of GDP.




The remaining 16.9 million dollars of funding will go to the rehabilitation of roads. The funding is pledged by the African Development Fund, which provides concessional financing for low-income regional member countries and provides technical assistance for capacity building projects and programmes.


The road infrastructure project is designed to enhance connectivity through rehabilitation of some 247Km of roads, on top of the construction of a new 100Km feeder road.

Out of the total funding, the Italian Cooperation contributed 5.2 million dollars through the Transition States Facility, split into 1.6 million dollars for the water and sanitation project and 3.7 million dollars for the road projects.

The European Commission is also contributing 47.1 million dollars in grants for the road infrastructure project, making the total funding from the Commission  64 million dollars under this programme.


The grant will help improve quality of life, inclusiveness and engender resilience in the communities, especially in Kismayo and Baidoa, where an estimated 65pc of the population live below the poverty line, and 70pc are younger than 30 years old and unemployed, according to Akinwumi Adesina (PhD), president of the Group.

“We should look at the whole issue of fragility and transition states in a more comprehensive way. We need to do a lot more engagement. We need to work aggressively to help these countries,” Adesina told board members during the approval process. “It’s important we do what we are doing to build their resilience."

In Somalia, the Bank has 12 ongoing projects with a total commitment of 109.1 million dollars in agriculture, water and sanitation.

“Somalia is showing promising signs of increased stabilisation through the formation of recognised state institutions, fostering a country-owned and led approach to transition from fragility,” said Nnenna Nwabufo, the Bank's deputy regional director-general for East Africa.


PUBLISHED ON Jul 27,2019 [ VOL 20 , NO 1004]

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.



Related Posts

Editors' Pick

Exclusive Interviews

State Enterprises from Oracles to Apprentices

Dec 22 , 2024 . By TIZITA SHEWAFERAW

Charged with transforming colossal state-owned enterprises into modern and competitiv...

Agenda

Rising Costs, Inflation Threaten Insurance Industry

Aug 18 , 2024 . By AKSAH ITALO

Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...

Agenda

BREWING DISCONTENT

Jul 28 , 2024 . By TIZITA SHEWAFERAW

Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...

Fortune News

Electric Vehicle Push Leaves Investors in the Lurch

Jul 13 , 2024 . By AKSAH ITALO

Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...

Commentaries

Fossil Fuels Arent Going Anywhere Despite Great Energy Transition Myth

Ideas and the words we use to frame them matter. For example, as the Cold War wound d...

Conflicts Upend Growth Story, Plunging Development Goals into Jeopardy

Once regarded as a rising economic star on the African continent, Ethiopia now finds...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Addis Abeba's Gleaming Facade Masks a Parched Metropolis

Dec 21 , 2024

The main avenues and thoroughfares of Addis Abeba have undergone an impressive faceli...

When More of Everything Leaves Less in the Bank

Dec 14 , 2024

Ethiopia's monetary policy has shifted conspicuously in recent years. Gone is the era...

Fueling Reform, the Petroleum Sector Caught Between Monopoly Missteps, Market Liberalisation

Dec 7 , 2024

For decades the Ethiopian Petroleum Supply Enterprise (EPSE), a state-owned giant ent...

Crafting Public Service Reward in a Cash-Strapped Economy

Nov 30 , 2024

In the corridors of government offices worldwide, the question of how much to pay mem...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Overcoming Emotional Impulses in Decision-Making

Have you ever made a split-second decision and later wondered, "What was I thinking?...

The Daily Struggles of Power Outages, Water Shortages

Addis Abeba was eerily silent over the past weekend, shrouded in darkness. The blacko...

Life Matters

Inadequate Regulation Leaves Tenants Vulnerable to Arbitrary Rental Hikes

The rental market in Ethiopia, like in many developing economies, is characterised by...

Lasting Treatments Instead of Temporary Relief

I have always avoided taking pills unless absolutely necessary: when I am genuinely u...