[{"bbox": [83, 105, 1146, 159], "category": "Text", "text": "Somalia (and Somaliland) investment climate and business environment and integration in the international financial system. These two overarching strategies are broken down into the following work streams:³"}, {"bbox": [121, 171, 1146, 224], "category": "List-item", "text": "(a) Supporting the establishment of a modern and coherent external audit function in Somalia, consistent with the emerging federal framework of governance,"}, {"bbox": [121, 224, 1146, 276], "category": "List-item", "text": "(b) Continuing (and enhancing) EU's engagement, on behalf of all Somalia donors, in the Financial Governance Committee (FGC),"}, {"bbox": [121, 276, 1146, 329], "category": "List-item", "text": "(c) Support wider fiscal accountability and economic governance reforms within the HIPC framework via the IMF Country Fund,"}, {"bbox": [121, 329, 1146, 383], "category": "List-item", "text": "(d) Enhancing the role of Civil Society in providing external scrutiny of Somali public finances and demanding greater transparency and accountability,"}, {"bbox": [121, 383, 1146, 436], "category": "List-item", "text": "(e) Promote inclusive economic reforms in the areas of business and investment that benefit the Somali private sector in key value chains and facilitate access to financing, and"}, {"bbox": [121, 436, 1146, 516], "category": "List-item", "text": "(f) Promote financial sector reforms aimed at integrating Somalia into the international financial system, including by contributing to AML/CFT, through strategic dialogue on financial governance and investments involving IFIs/DFIs and capacity building for local institutions."}, {"bbox": [83, 528, 1146, 687], "category": "Text", "text": "This action takes forward some critical areas of support that have proven successful in the past, notably support to the external audit function and the Financial Governance Committee, while also teaming up with others (notably IMF, World Bank, UK, US) to support a coherent multi-donor approach to tackle Somalia's critical financial and economic governance challenges. The multi-donor approach is critical in light of the political nature of necessary reforms. Progress in these areas is essential to increase the legitimacy and sustainability of the Somali Government, and increase the integration of Somalia into the global economy to create jobs and increase income generation."}, {"bbox": [83, 699, 1146, 780], "category": "Text", "text": "Contracts will comprise a mixture of direct management (likely via a service contract with a TA supplier and a CSO grant), and indirect management in the form of contribution agreements with the IMF Somalia Country Fund and WB Group Trust Funds."}, {"bbox": [83, 792, 1146, 899], "category": "Text", "text": "The main SDG targeted by the action is SDG 16 \"Peace, Justice and Strong Institutions\", while also contributing to SDG 1 \"Poverty\", SDG 2 \"Zero Hunger\", SDG 7 \"Affordable and clean energy\", SDG 8 \"Decent Work and Economic Growth\", SDG 9 \"Industry, Innovation and Infrastructure\", and SDG 10 \"Reduced Inequalities\". The action is not a Team Europe Initiative, but supports the TEI on green deal/sustainable energy."}, {"bbox": [72, 926, 301, 959], "category": "Section-header", "text": "## 2. RATIONALE"}, {"bbox": [86, 989, 220, 1016], "category": "Section-header", "text": "### 2.1. Context"}, {"bbox": [83, 1045, 1146, 1256], "category": "Text", "text": "Somalia is a key partner of strategic interest for the EU in the areas of stability and security in the Horn of Africa, but also for climate change, migration, education and promotion of green economic growth. Despite sustained progress on economic reforms, the overall situation in Somalia continues to be extremely fragile and volatile hampered by political instability, climate induced shocks (drought and floods primarily), persistent security challenges, direct conflict and socio-economic vulnerability. These factors combined with the Covid-19 pandemic and the desert locust infestations are the main drivers of acute humanitarian needs, with 2.9 million people internally displaced and over 2.8 million people facing acute food insecurity and hunger (compared to 3.1 million people in the last major drought in 2017/18)."}, {"bbox": [83, 1269, 1146, 1402], "category": "Text", "text": "The political instability driven by Al-Shabaab and tensions between the Federal Government of Somalia (FGS) and some of the Federal Member States (FMS) characterise the political context in Somalia. The 15-month overdue presidential elections added to these tensions, which are undermining the state building efforts and progress towards key milestones, such as the finalisation of the provisional constitution, the agreement on the federal model, and the electoral system."}, {"bbox": [83, 1414, 1146, 1549], "category": "Text", "text": "The political tensions and deep-seated grievances also represent a significant obstacle to achieving progress on the security front. Al-Shabaab continues to control significant parts of the country and carries out regular attacks against civilians as well as Somali and AMISOM forces. Despite the commitment in the Somalia Transition Plan (STP) to take over the country's security responsibility by 2023, Somali security forces remain heavily dependent on international support and cannot ensure the protection of the population."}, {"bbox": [72, 1614, 1156, 1663], "category": "Footnote", "text": "³ The proposal has been prepared on the assumption that the proposal made to reinforce quality infrastructure in Somalia and Somaliland will be covered under the regional programme (Economic Integration and Trade Component)."}, {"bbox": [1051, 1663, 1157, 1687], "category": "Page-footer", "text": "Page 4 of 21"}]