Somalia received US$ 2 billion in official development assistance (ODA) in 2020, comprised of roughly equal volumes of humanitarian and development aid (Table 1).1 Development-focused aid increased 23% in 2020 (US$ 1 billion) relative to 2019 (US$ 854 million), largely driven by significant increases in aid from the World Bank and Germany (Table 2). Whereas humanitarian aid is expected to increase over the course of 2021, it is unclear if the same will be true for development aid.
As of June 2021, donors reported US$ 685 million in development aid, a 35% decrease from the high of US$ 1 billion reported for the previous year. This may be due to declining budgets or simply a lack of reporting. The global economic downturn is already impacting some donors’ aid envelopes. The impact on the overall volume of ODA is likely to be offset somewhat by the country’s increased access to development financing from international financial institutions (IFIs). Somalia reached Decision Point under the Heavily Indebted P o o r C o u n t r i e s (HIPC) Initiative and cleared its arrears to IFIs in March 2020, restoring access to important sources of development financing.
Aid Flows in Somalia 2021