Advancing Transparency, Accountability, and Good Governance: IPFS Annual Report 2024

Executive Summary

The Institute of Public Finance – Somalia (IPFS) is proud to present its Annual Report 2024, highlighting a year of transformative achievements in advancing Public Financial Management (PFM) and Public Resource Management (PRM) reforms across Somalia.

The report reflects IPFS’s continued commitment to:

Promoting transparency and accountability.
Strengthening public financial governance.
Building institutional capacity.
Supporting evidence-based policymaking.
Driving sustainable public sector reforms.

As Somalia continues its journey toward sustainable development, IPFS has played a leading role in strengthening financial governance, supporting institutional reforms, and fostering collaboration among government institutions and development partners.

2024: A Year of Transformative Impact

The year 2024 marked significant progress for IPFS through strategic partnerships, innovative programs, and nationwide capacity-building initiatives.

Major achievements include:

Expansion of Public Financial Management reforms across Somalia.
Strengthened collaboration with federal, state, and local government institutions.
Increased institutional capacity through professional training.
Enhanced support for fiscal governance and public sector modernization.

Key Highlights

1. Completion of Phase I of the BRA-PFM Reform Program

IPFS successfully completed Phase I of the Banadir Regional Administration (BRA) Public Financial Management Reform Program.

Major achievements included:

Comprehensive assessment of BRA's financial management systems.
Identification of institutional and financial management gaps.
Development of practical recommendations to improve governance, transparency, and accountability.

2. Launch of Phase II of the BRA-PFM Reform Program

Building on the success of Phase I, IPFS launched Phase II of the reform program.

The second phase focuses on:

Modernizing financial management systems.
Developing fiscal policies.
Strengthening institutional capacity.
Promoting fiscal discipline.
Improving operational efficiency.

3. Capacity-Building Programs

Throughout 2024, IPFS delivered more than 500 training sessions for public officials across federal, state, and local government institutions.

Training covered key areas including:

Public Financial Management best practices.
Tax administration.
Domestic revenue mobilization.
Budget preparation and execution.
Gender-responsive budgeting.
Financial governance.

4. Strategic Partnerships

IPFS strengthened collaboration with key national and international partners.

Major partnerships included:

AARC Ltd.
VNG International.

These partnerships supported:

Technical assistance.
Capacity-building programs.
Knowledge-sharing initiatives.
Strengthening Somalia's public financial systems.

5. Support to Federal Member States

IPFS worked closely with the Ministries of Finance in:

Galmudug.
Hirshabelle.
Jubbaland.
Southwest State.

Support focused on:

Improving Public Financial Management frameworks.
Strengthening domestic revenue collection.
Supporting fiscal decentralization.
Enhancing institutional capacity.

6. Sectoral Engagement

IPFS expanded its support beyond core financial management.

Key initiatives included:

Supporting operational and financial management reforms for the National Health Professionals Council (NHPC).
Promoting climate-sensitive budgeting.
Advocating for green public finance policies.
Supporting sustainable development initiatives.

Research and Knowledge Sharing

Research remained a central component of IPFS’s work throughout 2024.

Major activities included:

Publishing policy briefs.
Producing research papers.
Developing advocacy materials.
Supporting evidence-based policymaking.
Organizing peer-learning platforms.
Promoting dialogue among Somali public institutions.

These activities strengthened collaboration and encouraged consensus on national reform priorities.

Strengthening Partnerships

International collaboration continued to expand the Institute’s impact.

Through partnerships with AARC Ltd and VNG International, IPFS provided:

Technical expertise.
Institutional capacity-building.
Knowledge exchange.
Strategic policy guidance.

These partnerships supported the alignment of Somalia’s financial management systems with international best practices.

Capacity-Building: Empowering Institutions and Individuals

Capacity-building remained central to the Institute’s mission.

Key initiatives included:

Training federal and state Ministries of Finance on:
- Budget preparation.
- Expenditure control.
- Revenue mobilization.
Providing technical assistance to the National Health Professionals Council (NHPC).
Organizing workshops on:
- Gender-responsive budgeting.
- Climate-sensitive public finance.
- Digital transformation of financial systems.
Facilitating peer-learning platforms involving:
- Government institutions.
- Civil society organizations.
- Development partners.

Looking Ahead: 2025 and Beyond

As IPFS moves into 2025, the Institute remains committed to strengthening public financial governance and promoting sustainable development.

Priority areas include:

Finalizing Phase II of the BRA-PFM Reform Program.
Expanding capacity-building programs across Somalia.
Developing climate-sensitive budgeting frameworks.
Supporting Somalia’s transition toward a green economy.
Strengthening partnerships with local, regional, and international organizations.
Promoting fiscal decentralization and inclusive governance.
Expanding research, publications, and policy advocacy.
Supporting evidence-based policymaking.

Acknowledging Our Partners and Supporters

The achievements of 2024 would not have been possible without the support of IPFS’s partners, donors, and dedicated staff.

The Institute extends its sincere appreciation to:

AARC Ltd.
VNG International.
National Health Professionals Council (NHPC).
Ministries of Finance of:
- Galmudug.
- Hirshabelle.
- Jubbaland.
- Southwest State.

Their collaboration has been instrumental in advancing Somalia’s Public Financial Management reforms.

Conclusion

The Institute of Public Finance – Somalia (IPFS) remains committed to:

Strengthening institutions.
Improving financial governance.
Promoting transparency and accountability.
Supporting fiscal decentralization.
Advancing sustainable development.
Building resilient public financial systems.

As the Institute enters the next phase of its journey, it reaffirms its commitment to ensuring that public resources are managed responsibly, equitably, transparently, and efficiently for the benefit of all Somali citizens.