Faced with donors’ reluctance to commit Funds, the Somaliland government is seeking new ways to strengthen the economy as it approaches the deadline for its 2012-2016 National Development Plan (NDP).
Chief among concerns is the fact that, according to the world Bank, Somaliland has the fourth-lowest gross domestic product per capita in the world.
Somaliland is locked out of the international system because it is not recognised as a sovereign state, and its economy relies heavily on the diaspora, which provides about $400m in remittances per year.
Of the $1.2bn required to fund the NDP, Somaliland planned for $980m to come from external sources.
Donors have not provided anywhere near that sum.
Nonetheless, the NDP focuses on five pillars: the economy; infrastructure; governance; social spending; and the environment.
The government planned to set aside about $175m of the budget for the economy pillar, and the NDP offers a roadmap for Somaliland to diversify beyond agriculture.
The NDP tries to encourage growth in manufacturing, commerce, tourism and mining.
At $487m, by far the most money is devoted to the infrastructure pillar.
Source: theafricareport
