The Somaliland Development Fund (SDF) provides a single vehicle through which donors can support Somaliland's development goals. The SDF supports the Government of Somaliland (GoSL) filling a critical gap through funding projects that are fully aligned to the National Development Plan (NDP) 2012 -2016 while at the same time recognizing the role of GoSL in the delivery of basic services.
The SDF will also support GoSL's communication of results to build accountability and transparency. Furthermore, the SDF is designed to strengthen the state-citizenship relationship and enhance accountability and domestic revenue generation. This, in turn, should lead to more stability and prosperity in Somaliland.
The Somaliland Development Fund (SDF) supports the Government of Somaliland (GoSL) filling a critical gap through funding projects that are fully aligned to the National Development Plan (NDP) while at the same time recognising the role of GoSL in the delivery of basic services. The anticipated impact of the Fund therefore is to contribute to a more stable and prosperous Somaliland.
The expected outcome of the SDF is improved and better-resourced core state functions for the people of Somaliland.
Donors and Funding
The funding for the SDF is provided by DFID, DANIDA, Norway and the Netherlands. DFID announced additional funds at the Brussels Conference in September 2013. This is a clear demonstration of confidence and commitment on the part of contributing donors to the Fund. However, this fund is only 4.2% of the $ 1.19 billion required for funding the National Development Plan.
Although the GoSL has also made significant strides in increasing its own domestic resources, as shown by notable rises in its year-over-year budget. However, government financing of the NDP and the sectors prioritized under the SDF is still relatively low because of limited utilization of existing sources of revenue. It is however expected that when PFM reforms begin to take shape the annual budget will be better planned and will free up resources for the government to spend on public services.
