Center for Building Public Finance Capabilities in Somalia

This profile outlines the creation of a center focused on developing sustainable public finance capabilities within Somalia. Adopting global best practices and adapting them to local conditions, the Center for Building Public Finance Capabilities aims to enhance fiscal management, improve public service delivery, and foster economic resilience and growth.

Vision:

To become a national leader in strengthening public financial management (PFM) capacity, ensuring fiscal discipline, and promoting sustainable development in Somalia.

Mission:

To develop practical, innovative solutions in public finance through training, research, and advisory services. The center will empower public institutions, businesses, and civil society to achieve fiscal transparency, accountability, and economic progress.

Strategic Objectives:

  1. Strengthening Institutional Capacity:

    • Provide technical assistance to government entities, focusing on fiscal decentralization and revenue mobilization.
    • Build partnerships with international organizations to facilitate the exchange of knowledge and best practices.

  2. Promoting Fiscal Sustainability:

    • Develop and support medium-term fiscal frameworks and sustainable debt management strategies.
    • Assist in public investment management to align financial planning with national development goals.

  3. Enhancing Capacity Development and Training:

    • Design specialized workshops for government officials in budgeting, tax policy, and financial management.
    • Embed PFM experts within government bodies to ensure the transfer of knowledge and foster reform sustainability.

  4. Facilitating Research and Knowledge Sharing:

    • Conduct research on revenue generation, fiscal risks, and expenditure management to guide policy-making.
    • Establish a knowledge-sharing platform through conferences, forums, and online courses to engage stakeholders.

Core Programs and Services:

  1. Capacity Building and Training:

    • Deliver tailored courses on public budgeting, revenue policy, and fiscal governance.
    • Provide on-the-ground technical assistance and coaching for public officials at the federal and state levels.
    • Develop certification programs in collaboration with local universities to promote professional development.

  2. Research and Policy Advisory:

    • Analyze fiscal trends, including tax compliance and public sector accountability, with a focus on Somalia’s informal economy.
    • Publish policy briefs and research papers that offer actionable insights for government agencies.

  3. Public-Private Partnerships (PPPs) and Investment Facilitation:

    • Assist in structuring PPPs to attract investment in critical infrastructure and services.
    • Develop frameworks to enhance private-sector participation in public service delivery.

  4. Digital Transformation in Financial Management:

    • Introduce automated financial systems and e-governance platforms to improve transparency.
    • Promote the use of digital tax systems to enhance efficiency and compliance.

Governance and Operational Structure:

  • Advisory Committees: Engage representatives from government, international partners, and the private sector to guide key initiatives.

  • Program Divisions:

    1. Training and Capacity Development
    2. Research and Policy Advisory
    3. PFM Reform and Governance Support

Performance Monitoring and Evaluation:

  • Key Performance Indicators (KPIs):

    • Number of professionals trained annually.
    • Improvements in fiscal sustainability metrics, including increased domestic revenue and controlled budget deficits.
    • Adoption of policy recommendations by government entities.

  • Annual Public Finance Programs:

    • Showcase the centre’s achievements and foster dialogue on public finance challenges and opportunities.

International Best Practices Adapted to Somalia’s Context:

  1. Peer Learning Networks:

    • Establish partnerships with regional institutions to share experiences and implement successful fiscal strategies.

  2. Embedding Experts in Government:

    • Place advisors within key ministries to provide hands-on technical support, ensuring real-time problem-solving.

  3. Incentivizing Fiscal Performance:

    • Introduce performance-based budgeting systems that reward effective financial management and accountability.

  4. Inclusive Stakeholder Engagement:

    • Create platforms for dialogue among government, civil society, and businesses to enhance transparency and trust.

The Center for Building Public Finance Capabilities will play a pivotal role in Somalia’s fiscal transformation by implementing global best practices tailored to the country’s unique needs. Through strategic capacity-building initiatives, policy research, and collaborative governance, the center aims to support sustainable development, strengthen financial accountability, and promote long-term economic growth