INTRODUCTION:
National Economic Council hosted its third-high level National Economic Policy Forum on the 7th and 8th of December 2019 in Mogadishu Somalia. Over 200 participants attended the forum. The theme of the National Economic Policy Forum was ‘Essential Reforms for Stability and Sustainable Economic Growth’. The discussion of the 3rd NEPF forum focused on Cooperative Fiscal Federalism in Somalia, National Anti-Corruption Strategy and Poor World Ranking, and Somalia’s Vision for Private Sector Development.
The 3rd National Economic Policy Forum was officially opened by His Excellency Mahdi Mohamed Gulled, Deputy Prime Minister of the Federal Government of Somalia. The Deputy stated in his opening speech, the importance of the forum to bring to the forefront topics of great importance that will move Somalia forward to improve national stability, anti-corruption, and inclusive economic growth through agriculture and strong financial sector.
The Forum attracted an impressive attendance of high caliber participants from FGS and FMS officials, dignitaries from the International Community, Academia, Civil Society including women and youth. The Forum, which has been received as a needed platform to deliberate on topics of importance into their more relatable and understandable parts, were shared for great wider exchange to make recommendations of value to stakeholders, considering various perspectives of the findings. Somalia’s international partners and friends that participated were from UNDP, USAID, Denmark, and USA, Representatives from Germany, Turkey and Saudi Arabia.
The Policy Forum Covered the Following Plenary Sessions:
- Cooperative Fiscal Federalism in Somalia and Natural Resources and Revenue Sharing
- Somalia’s Anti-Corruption Strategy and Poor World Ranking
- A Somali Vision for Private Sector Development focusing on Agriculture Value Chains and Affordable Finance.
Key Message and Action Points:
- The Forum acknowledged the progress made towards public financial management and economic reforms in moving towards the right path;
- The participants applauded the work NEC is performing to support the country’s economic policies and reform agenda;
- The Forum noted the need of the Somali Federal Parliament to carry out its constitutional oversight and ensure the independency of the Auditor General’s mandate and responsibilities;
- The Forum noted the judiciary which is the guardian of laws and integrity to be strengthened, to ensure that those accused of mismanagement of public funds and corruption are investigated and tried in a transparent fair manner;
- The Forum called for the need for an independent Anti–corruption Commission to be established expeditiously. The Commission must be accorded with prosecution powers and staffed with the necessary resources;
- The Forum underlined the need to cultivate a culture of integrity to ensure those holding public office refrain from abusing their position of power to plunder public resources for personal use;
- The Forum acknowledged the need of raising public awareness on mismanagement of public funds and corruption by educating and involving the public in building a culture of integrity, transparency and accountability;
- The Forum acknowledged the need to engage with institutions that work on corruption such as Transparency International to study and address the underlining factors that trigger Somalia’s low ranking on the Corruption Perceptions Index;
- The Forum urged the government to take advantage of international anti-corruption regulations and mechanisms by ratifying the United Nations Convention against Corruption and the African Union Convention on Preventing and Combating Corruption. The government assured Forum participants that the efforts of ratifying both conventions are underway;
- The Forum acknowledged the government’s efforts to draft and finalize the Anti-Corruption Strategy, which is essential for tackling the widespread corruption in the country;
- The Forum highlighted the need for FGS and FMS to cooperate on fiscal federalism and inter-governmental relations;
- The Forum commended the consultation on revenue sharing and urged that it should lead to an agreed upon processes by the FGS and FMS;
- The Forum acknowledged the ongoing efforts to harmonize FGS and FMS through the Staff Monitoring Program (SMP);
- The Forum called for the establishment of independent National Revenue Authority responsible for national tax administration and management;
- The Forum noted that the private sector in Somalia is dynamic, resilient and a key provider of services in the absence of strong institutions for many years. The role of the private sector as major employer for Somalia is critical for youth productive employment and curbing extremism in the country;
- The Forum called for the government to establish and put in place a Public Private Partnership law, policies, regulations and a Public Private Partnership Unit;
- The Forum suggested a Public Private Partnership (PPP) in the energy space with the support of development finance institutions to constrain the high energy cost;
- The Forum underscored that the main employment sectors of the economy such as agriculture and construction, continue to lag behind expectations and remain hugely underinvested;
- The Forum noted that Economic corridors and ancillary investments such as Special Economic Zones and small-scale industrial processing must be encouraged to assist in transforming productivity and profitability;
- The Forum noted that the constraints faced by the productive sector in Somalia such as insecurity, lack of access to finance, market, limited skilled labor as well as high production cost must be addressed by all stakeholders;
- The Forum called for the revival of the banana exports which create jobs for women and IDPs, and called for the re-establishment of Agricultural Research Center to support and develop agricultural sector in Somalia.
- The Forum expressed concern about the productive activities’ lack of access to affordable credit, and urged the authorities to develop the requirements of the financial sector.
