Finland Contributes EUR 4 Million towards New Deal Implementation in Somalia

By European Union

The Finland Ministry of Foreign Affairs and the World Bank signed anagreement today for Finland to provide EUR 4 million to the World Bank-administered Multi PartnerFund (MPF), a multi-donor trust established for New Deal implementation in Somalia.

Commenting on the Finnish contribution, H.E. Tarja Fernández, Ambassador of Finland toSomalia said that “Finland's development co-operation is focused on least developed countries andfragile states. Finland lays particular emphasis on the strengthening of the developing countries' owneconomies to promote employment, livelihoods and well-being. The MPF is an important tool to fosterSomali economic recovery and governance reforms, including federalism, and it suits well Finland'scomprehensive approach to peace and development.”

The MPF provides a platform for coordinated financing for sustainable reconstruction anddevelopment in Somalia with a focus on core state functions and socio-economic recovery. The threekey areas of thematic focus include: effective and accountable government, core economicinfrastructure, and enabling economic growth.

“Finland joins the MPF at an exciting time. We are starting to see the roll out of the portfolio on theground and a new level of sophistication in our engagement with the Somali authorities. The MPF isproving that the country systems are a viable means of delivering development programs in Somalia,”said Bella Bird, World Bank Country Director for Somalia.

One of the New Deal principles reflected in the Somali Compact is the commitment to build and usecountry systems. With a portfolio focus on “recipient-executed” projects (i.e. projects designed anddelivered by and through Somali institutions), the MPF is a vehicle for building and using countrysystems, ensuring ownership and capacity internalization for sustainability.In total, donors have committed US$185 million to the MPF. Other donors contributing to the MPFinclude the European Union, the Royal Norwegian Embassy, the Swedish International DevelopmentCooperation (SIDA) Agency, the Swiss Agency for Development Co-operation (SDC), the UKDepartment for International Development (DfiD), Italian Ministry of Foreign Affairs and InternationalCooperation, Denmark Ministry of Foreign Affairs (DANIDA) and the World Bank State- and Peace-building Fund (SPF).