ZCZC
BCN-25
WORLDBANK-SOMALIA-ECONOMIC-GROWTH
World Bank lauds economic growth prospects in Somalia
MOGADISHU, Sept. 7, 2019 (BSS/Xinhua) – The World Bank has lauded the
progress made in realizing economic recovery in Somalia, saying it has been
steady and sustained.
In its economic update on Somalia, the lender said the economy is estimated
to have 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.
“While this progress is encouraging, the available fiscal space remains
insufficient to meet expenditure needs education and health sectors,” the
World Bank said in a report which was released on Thursday evening.
A growth of 2.9 percent is the forecast for 2019 and it is projected to
expand by 3.2-3.5 percent over the medium-term, assuming the current reform
momentum continues.
The 4th edition of the World Bank report says 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.
Hugh Riddell, World Bank country manager for Somalia said the government is
laying the foundations for longer term economic development, but human
capital development is essential for growth to be inclusive and sustainable.
“Attracting more public and private investment into Somalia’s education
sector is therefore fundamental to securing poverty reduction in line with
the hopes of the new National Development Plan,” Riddell said.
According to the World Bank, Somalia, with the potential to normalize
relations with international financial institutions, has an opportunity to
drive forward coordinated and sustained efforts to boost education access and
teaching quality.
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.
“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,” said Huma Ali Waheed, World Bank senior education
specialist.
“Above all, success will be contingent on enough and predictable funding at
all levels of government with aligned donor funding to support system
development,” Waheed added.
The report says improving education outcomes of the younger generation is
key for enhancing productivity, sustaining economic recovery, boosting
inclusive growth and promoting poverty reduction in Somalia.
BSS/XINHUA/HR/1450