African Development Bank Unveils New Country Strategy Paper for Somalia to Boost Infrastructure, Build a Resilient and Competitive Economy for Inclusive Growth

26 November 2025
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African Development Bank (Abidjan)
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On a small field in Somalia, a farmer bends to pick fresh melons -- one of many beneficiaries of the Drought Resilience and Sustainable Livelihoods Programme.

Her thriving plot is a powerful reminder of what is possible when communities have better access to water and productive resources and the danger of drought fades. Scenes like this illustrate, in human terms, the broader turning point Somalia is now navigating: a fragile but promising transition shaped by improved security, expanded political dialogue, and renewed reform momentum.

But persistent challenges remain. Somalia continues to face a large infrastructure deficit, climatic shocks, macroeconomic imbalances, high costs of finance for the private sector, and weak institutional and human capacities. These structural constraints--combined with socioeconomic fragility and a limited fiscal space--still define the daily reality for millions of people. Faced with such a reality, the country's development path requires both resilience and more effective public institutions capable of delivering essential services.

It is at this pivotal moment that the Board of Directors of the African Development Bank Group has released its new Somalia Country Strategy Paper (CSP) 2025-2030 - an ambitious roadmap designed to strengthen state institutions, expand critical infrastructure, and accelerate inclusive economic growth.

Developed in close collaboration with government authorities, civil society, the private sector, and development partners, the strategy reflects the findings of a rigorous Country Diagnostic Note that pinpointed the underlying drivers of fragility.

The strategy focuses on two priorities areas that will guide the Bank's support over the next five years: sustainable, quality infrastructure for a resilient economy and stronger financial and strengthening financial and economic governance for a stronger state and inclusive economy.

The Bank will intensify investments in energy, transport, and water and sanitation, strengthening the backbone of Somalia's economy. In doing so, Somalia will experience more reliable and affordable electricity to fuel business growth, improved transport corridors to connect rural communities to markets and services and expanded access to clean water and sanitation to communities for improved public health and reduce vulnerability to drought and displacement.

The new strategy for Somalia places renewed emphasis on economic governance reforms to support Somalia in deepening public financial management reforms for greater transparency, improving revenue mobilisation and modernising customs systems and building institutional and human capacity to attract private investment.

Combined, these new strategic priorities will support Somalia to tackle the enduring drivers of fragility such as weak institutions, low productivity, inadequate infrastructure, and climate vulnerability, while fostering diversification and resilience across all sectors.

The new strategy is aligned with Somalia's Centennial Vision 2060, its National Transformation Plan (2025-2029) and the Bank's own Ten-Year Strategy.

In unveiling the CSP, Bubacarr Sankareh, AfDB Lead Operations Advisor for Somalia, underscored its significance. "This CSP was developed in close collaboration with government authorities, civil society, private sector and development partners to increase economic opportunities and job creation, while also improving climate resilience through climate-smart infrastructures and strengthening the state's capacity to deliver essential services and effectively manage public resources," he said.

In addition, Sankareh noted, the CSP was underpinned by a rigorous analysis from the Country Diagnostic Note which identified the underlying structural challenges and drivers of fragility that Somalia faces including large infrastructure deficit, high cost of finance for private sector, persistent macroeconomic imbalances, climatic shocks, socioeconomic fragility and weak institutional and human capacities.

The strategy arrives at a pivotal moment when Somalia navigates a fragile but promising transition marked by improved security, expanded political dialogue, and renewed reform momentum. Yet the country continues to face deep structural challenges--from climate shocks to limited fiscal space and a significant infrastructure deficit.

"This strategy is about unlocking Somalia's potential by investing in the foundations of private sector competitiveness through building strong institutions, resilient infrastructure, and inclusive growth that reaches every community," Sankareh concluded.

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