PILLAR 1
Economic Transformation and Sustainability
The “Economic Transformation and Sustainability” pillar is a framework designed to move a country’s economy from a low-productivity, often resource-dependent model to a diversified, high-value, and resilient one. Its core principle is to achieve economic growth that not only benefits the current generation but also preserves the environment and social well-being for future generations but also preserves the environment and social well-being for future generations.
Core Goal
To achieve sustained and inclusive economic growth by diversifying the economy, strengthening the private sector, and fostering innovation, thereby creating a resilient and prosperous Somalia capable of withstanding climate shocks.
Sub-Key Activities:
This pillar’s activities are multifaceted, focusing on structural reform, investment, and policy.
Diversification of the Economy:
Moving beyond a reliance on a single sector (like agriculture or oil) to build a more resilient economy. This includes supporting the growth of high-value sectors such as manufacturing, technology, and services, and encouraging exports in these new areas, with a specific focus on prioritizing and actively supporting the growth of “green sectors” and value chains, such as renewable energy (e.g., solar mini-grids for rural electrification), sustainable waste management (e.g., recycling initiatives), and climate-smart agribusinesses (e.g., processing drought-resilient crops). This involves providing technical assistance and market linkages for these emerging sectors.
Creating a Conducive Business Environment:
Implementing policies that foster private sector growth and innovation. This involves simplifying business registration, strengthening property rights, and ensuring a stable legal and regulatory framework, while advocating for and supporting the development and implementation of policies that incentivize green investments and climate-resilient business practices. This could include proposing tax breaks, streamlined business registration processes, or access to specialized “green finance” for sustainable ventures, in collaboration with local government and private sector partners.
Sustainable Resource Management
Promoting the responsible use of natural resources. This includes investing in renewable energy sources, implementing a circular economy model (reduce, reuse, recycle), and adopting sustainable agricultural practices to protect land and water resources, with an emphasis on implementing and scaling up climate-smart agricultural (CSA) practices directly with smallholder farming households and pastoralist communities.
This includes promoting the adoption of droughtresistant crop varieties, efficient irrigation techniques (e.g., drip irrigation), water harvesting methods, and agroforestry systems to improve yields and protect land/water resources and additionally, promoting and facilitating the adoption of renewable energy solutions (e.g., solar installations for households, community centers, or vocational training sites) as a sustainable alternative to environmentally destructive charcoal production.
Human Capital Development
Investing in education and vocational training to create a skilled workforce that can meet the demands of a modern, diversified economy. This also includes promoting decent work, protecting labor rights, and formalizing the informal economy, with a specific focus on integrating comprehensive climatesmart skills training into vocational training programs. This should include practical skills in renewable energy installation and maintenance, sustainable water management (e.g., borehole repair and irrigation system operation), climate-resilient construction techniques, and agroecological principles.
Infrastructure and Technology
Developing resilient and sustainable infrastructure, such as modern transportation networks and reliable energy grids. This also involves promoting digital technologies and innovation to boost productivity and efficiency, with a focus on supporting the development and rehabilitation of climate-resilient water infrastructure, such as constructing new dams and berms, rehabilitating boreholes and irrigation canals, and implementing water harvesting structures. These interventions aim to ensure water security during prolonged droughts and manage excess water during floods.
Objectives
The objectives of this pillar are centered on achieving long-term, inclusive, and environmentally conscious prosperity.
To achieve sustained and inclusive economic growth:
The goal is not just growth, but growth that is widely shared and creates jobs and opportunities for all segments of society, including women and youth.
To increase economic resilience:
To build an economy that is robust enough to withstand external shocks, such as climate-related disasters or global market fluctuations.
To decouple economic growth from environmental degradation:
To ensure that economic progress does not come at the expense of the environment.
To foster innovation and competitiveness:
To create an environment where businesses can innovate, improve productivity, and compete effectively in regional and global markets.
To ensure sustainable livelihoods:
To create stable, decent, and green jobs that provide long-term economic security for the population.
Milestones:
Milestones are tangible, measurable indicators used to track progress toward the objectives.
Policy and Legislative Milestones:
- Adoption of a national economic development strategy with clear targets for diversifying the economy and increasing the share of non-extractive sectors in the GDP.
- Implementation of new environmental protection laws that promote renewable energy and sustainable land use.
- Establishment of an investment promotion agency that successfully attracts a specific number of foreign direct investments in key sectors.
- Contribute to the drafting or successful adoption of at least one new policy framework or amendment that explicitly promotes green business development or climate-resilient investment within a target region by 2026.
Economic and Financial Milestones:
- Achieving a specific percentage of annual GDP growth, with a focus on non-traditional sectors. 2. A quantifiable increase in employment rates, especially for youth and women, in formal, productive sectors.
- A measurable increase in the share of renewable energy in the national energy mix.
- Establish and support 50 new green micro-enterprises or cooperatives, particularly for women and youth, in climate-vulnerable regions, with a focus on documented revenue generation and job creation (e.g., creating 200 new jobs).
- A measurable reduction (e.g., 10%) in household reliance on charcoal for energy in target communities by 2027, as evidenced by pre- and post-intervention surveys and increased adoption of alternative energy sources.
Programmatic Milestones:
- Successful rollout of a national vocational training program that graduates a specific number of skilled workers in high-demand fields.
- Establishment of a green fund or financial mechanism to support sustainable business initiatives and startups. 3. Implementation of a pilot project for sustainable agriculture that demonstrates increased yields and reduced environmental impact.
- 5,000 farming households adopting at least two climate-smart agricultural practices, demonstrating a measurable increase in yields (e.g., 15%) and water efficiency (e.g., 20% reduction in water use per crop) by 2027.
- By 2028, 70% of vocational training graduates will have secured "green jobs" or successfully established climate-resilient livelihoods within six months of completing the program, as tracked by follow-up surveys.
- Construction or rehabilitation of 10 climate-resilient water infrastructures, benefiting 4,600 households (including 2,254 women-headed households) by 2027, with documented improvements in water access and availability.