Somalia Signs Wage Agreement with World Bank

Published: October 3, 2015

Somalia Signs Wage Agreement with World Bank
Somalia’s Federal government has signed a five year agreement with the World Bank that covers salaries for government workers under the second phase of the Recurrent Costs and Reform Financing Project .
The agreement was signed by the Somalia’s Minister of Finance Mohamed Aden Fargeti and Miss Bella Bird who is the World bank Country Director for Tanzania, Burundi, Malawi and Somalia.
‘’This money will help us to pay the salaries of the government and regional administrations workers too,’’ said the minister.
The $144 million funds has been provided by the governments of Norway, Sweden, Italy, UK  and the European Union, and is expected to secure salaries for government workers who have not been paid for at least six months.
Western governments have pledged billions to Somali government, but not as direct budget support. The government of President Hassan Sheikh Mohamud irritated many Western donors over the scandal triggered by the resignation of central bank governor Yussur Abrar, who quit after only seven weeks in the job due to pressure on her to sign suspicious deals.
Since the collapse of the Siad Barre government in 1991, Somalia has experienced cycles of conflict that fragmented the country, destroyed legitimate institutions and created widespread vulnerability. Gross domestic product (GDP) per capita and human development outcomes are now among the lowest in the world.
Somali government was backed by the Western countries when it came to power in September 2012, but has become a source of grumbling for Somalis, as changes come in a very slow pace.
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