How Somalia’s Federal Government fails to utilize billions in donor funds

[Neptune]

Interesting read. No wonder a lot of projects remain unfinished.

How Somalia’s Federal Government fails to utilize billions in donor funds | Caasimada Online

www.caasimada.net

 

[Neptune]

@Idilinaa what are your thoughts on this?

 

[Idilinaa]

I bookmarked it to read in more detail later. That $522–307 million figure is a substantial amount to be left underutilized.

It actually confirms what I’ve suspected all along as I’ve mentioned before, with that level of donor funding, they could be accomplishing far more.

For example, the government could use those funds to develop viable state-owned industries that generate sustainable revenue, or even invest in private enterprises through equity stakes.

Most of the structural problems and inefficiencies the author highlights don’t surprise me. They align with what I found when examining their data collection systems which are severely lacking. It’s worth contrasting this with the high revenue utilization and more robust data collection mechanisms during the first 10 years of the Kacaan government.

There is a several reasons for what you pointed out right there. And you are absolutely right.

It's because the Kacaan government had unitary/centralized authority and a national vision,
with clear objectives: self-reliance, development, industrialization, and national unity.

This meant data collection was prioritized to support planning, budgeting, and performance evaluation.

Every ministry, regional administration, and public enterprise had mandates to report and keep records.

For example, The Ministry of Planning and National Development under the Barre era released detailed 5-year development plans, national statistics yearbooks, and sector performance reviews.

Another thing is that they had state-owned institutions with nationwide reach , the state controlled most key sectors: healthcare, education, agriculture, transport, and industry.

This allowed for nationwide documentation and centralized reporting, without relying on fragmented private actors.

This model enabled consistent reporting across all Somali regions (north, central, and south), something the current federal system struggles to achieve.

Another thing is that they had extremely professional civil servants and national cadres.
Civil servants were trained, disciplined, and regularly rotated across the country.

Institutions like the Military Academy and various technical institutes trained thousands of professionals who upheld state standards in data keeping, census operations, and field research

Now how does this compare to the current FGS?

1. Weak Federal Institutions,

The Federal Government of Somalia (FGS) often lacks access, legitimacy, or authority in key regions. Some federal member states don’t share data or operate autonomously.

Lack of coordination leads to underreporting and poor-quality statistics.

2. Underfunded Civil Services & Brain Drain

The current Somali government relies heavily on NGOs and foreign consultants.

Many skilled professionals emigrated or work in private/donor sectors

Government lacks capacity and technical tools to implement full-scale national data collection (like censuses or GDP rebasing).


3. Overreliance on External Agencies

World Bank, IMF, UN agencies often conduct their own research rather than empowering Somali institutions.

This weakens national capacity and leads to overseas-stored data or inconsistent figures.

 

[NordicSomali]

Necessity is the mother invention.