What are we funding?
GRANT AMOUNT | ENDORSEMENT DATE | ACTIVITIES | INSTRUMENTS SUPPORTED | WB PROJECT |
US$12 million | December 12, 2024 | Expand the financial protection pastoralists receive through the DRIVE project and enable the national safety net to scale up when there are climate shocks. This would provide targeted support to vulnerable populations working in a key economic sector while boosting the country’s overall financial resilience. |
| US$327.5 million (approved June 21, 2022)
Building Opportunities and Outcomes in Social Protection and Youth Employment in Somalia (BOOST-YOU) (P507443) US$100 million (approved Sep 25, 2025)
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- Fragility and political insecurity have made it even more difficult for Somalia to cope with natural disasters. Disasters overall currently cost the government an estimated US$120 million per year, and costs could increase to nearly US$1 billion if more extreme events occur. The high level of climate risk is particularly problematic for Somalia’s agricultural sector, which is responsible for more than 50 percent of GDP, 80 percent of export earnings, and an estimated 65 percent of the country’s labor force. The government has recently begun using CDRFI instruments to manage a portion of these risks, but without additional fiscal resources cannot attain a sufficient level of protection. Through its participation in the regional World Bank DRIVE project, Somalia provides participating pastoralists with US$52 million in micro-level coverage to protect their livestock from drought. A sovereign/macro insurance product provides an additional US$18 million in coverage for drought. In 2019, Somalia launched its first social safety net program, Baxnaano, to support the poorest households, but it has not yet put in place the CDRFI instruments that would enable the safety net to be used in response to climate shocks. With ongoing World Bank support for the DRIVE project and additional financing anticipated for the operation that supports Baxnaano, the government has an opportunity to increase its use of CDRFI and integrate it with its social protection efforts
- The GSFF Steering Committee has endorsed a US$12 million GSFF grant to enable Somalia to scale up its social safety net program in response to climate shocks and to expand pastoralists’ access to insurance and credit.
- The grant would co-finance two World Bank operations: the ongoing De Risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa (DRIVE) project, which increases access to finance and markets for pastoralists, and the Building Opportunities and Outcomes in Social Protection and Youth Employment in Somalia (BOOST-YOU) project, which aims to enhance economic opportunities and strengthen ASP systems in Somalia.
- Award of the grant is contingent upon approval of the BOOST-YOU project by the World Bank Board of Directors, which is currently expected by September 30, 2025.