The Context

Somalia is a low-income country with a fragile economy that relies largely on agriculture, livestock, remittances and international assistance. Agriculture accounts for a significant proportion of GDP and is key to Somalia’s economic growth and poverty reduction.

The country grapples with significant challenges. Ongoing conflict severely impacts agricultural productivity and livestock exports. The impacts of climate change, especially flooding and extreme drought, have resulted in nearly 5 million people suffering from acute food insecurity. Desertification is reducing the viability of rain-fed agriculture and livestock production. Unemployment, particularly among youth, is alarmingly high while poverty rates are highest in rural areas. Moreover, Somalia is one of the top ten origin countries for refugees.

Smallholder farmers, pastoralists and agro-pastoralists face major risks, including climate change, insecurity, weak institutional capacity and land degradation.

The Strategy

After the clearing of debt arrears by Belgium, Italy, Sweden and Germany in 2023, IFAD once again is deepening its operations in Somalia. Despite the arrears, IFAD continued to mobilise grant financing and implemented projects through third-party implementing partners.

IFAD's strategy in Somalia focuses on promoting sustainable agriculture, building resilience, enhancing productive capacities and ensuring food security by:

• improving the sustainable and climate-resilient management of water infrastructure;
• developing climate smart agricultural technologies, promoting nature-based solutions and improving rangeland and livestock management;
• strengthening the institutional and technical capacities of actors at all levels; and
• encouraging youth participation in agri-food value chains.