The Somali economy is projected to grow by 2.9 percent in 2019 and projected to expand by 3.2 – 3.5 percent over the medium-term, assuming the current reform momentum continues, the World Bank said on Monday.
According to the World Bank’s Somalia Economic Update (SEU), the economy expanded by 2.8 percent in 2018, compared to 1.4 percent in 2017, following a modest rebound of the agriculture sector from the effects of the 2016/17 drought.
On the overall economic situation in the country, the report notes that progress in realizing economic recovery has been steady and sustained.
“Heightened economic activity combined with reforms in tax policies and tax administration have contributed to domestic revenues increasing by 29 percent in 2018, albeit from a low base. While this progress is encouraging, the available fiscal space remains insufficient to meet expenditure needs education and health sectors,” noted the report.
The report paints a rosy picture of the economy pointing out that there exists a potential to normalize relations with International Financial Institutions.
Somalia has an opportunity to drive forward coordinated and sustained efforts to boost education access and teaching quality, noted the report.
The report proposes the establishment of a national education development fund that will ensure adequate education financing across the Federal Member States with incentives to maximize student enrollment.
“Such efforts are proposed to be complemented by partnerships with non-state sector and communities, as well as the deployment of technology to provide adequate learning support for teachers and students,” added the report issued in Nairobi.
“The success of the suggested approaches will depend on the availability of reliable data on the characteristics and performance of students, schools and other management entities,” Huma Ali Waheed, World Bank Senior Education Specialist said in a statement.
“Above all, success will be contingent on enough and predictable funding at all levels of government with aligned donor funding to support system development,” he added.
JK/abj/APA