Somali investment climate reform project

THE BACKGROUND

The Somali Investment Climate Reform Project and Somali Unlocking Sectoral Investment Project implemented by the International Finance Corporation (IFC) of the World Bank Group (WBG) undertook a baseline survey in Somaliland on the Investment Promotion and Business Regulation (business registration, construction permitting, property registration and business licensing) interventions.

THE PROJECT

The International Finance Corporation through the Somali ICRP-II and SUSIP projects sought to catalyze investment and enhance private sector led economic growth and competitiveness in Somaliland through targeted investment climate reforms. These two projects sought to implement selected investment climate reforms, primarily in Hargeisa, to expand and strengthen Somali private sector through targeted legal, regulatory and process improvements to the business environment and support efforts in facilitating trade and investment.

The business environment component sought to improve the climate in which businesses operate so as to improve efficiency through streamlined processes, enhance transparency and accountability through technology and reform the business climate. It sought to address the Somaliland’s unique challenges on regulatory gaps and the lack of institutions in key areas by specifically focusing on interventions aimed at: improving the starting a business indicator of WBG’s Doing Business and broader business environment that include reducing the number of days to register a business. The business environment component undertook the survey to establish the quality of business licensing services; business inspections and construction permitting.

THE RESULTS

The investment promotion component under SUSIP, implemented through the Somaliland Ministry of Investment, sought to facilitate growth and investment in prioritized sectors by addressing sectoral gaps in policy, regulatory, administrative and institutional frameworks inhibiting private investments in Somaliland. Investment promotion interventions sought to address economy-wide constraints to investment with a focus on the sectoral framework to enable investments and improve sectoral investment facilitation. Also, the project provided technical assistance support to the investment promotion activities of the Government of Somaliland and the efforts of the Government to develop the Investment Promotion Strategy to allow the Government efforts to careful investor targeting around pre-identified sectors of Berbera corridor.