GPE's innovative financing modality in Somalia enables greater government ownership
August 13, 2024 by Save the Children, and GPE Secretariat |
4 minutes read

GPE funding through Somalia’s Treasury Single Account is increasing government leadership and ownership in the education sector.

The collapse of Somalia’s central government in 1991 was followed by a protracted civil war and the breakdown of crucial institutions. In 2012, a federal government was established. However, the education sector is still recovering from longstanding capacity challenges.

Public confidence in government institutions has been low and financial transparency has been a pressing concern. In addition, weak public financial management systems have hindered the government’s ability to provide quality education.

Most external donors and partners have therefore preferred to implement grants directly rather than through government financial systems; the result is that many projects have been implemented without meaningful government involvement.

Better public financial management

As part of a wider set of public financial management and administration reforms, Somalia adopted the Treasury Single Account (TSA) framework in 2013. This resulted in enhanced transparency, accountability, and efficiency in managing public resources.

Following the adoption of the TSA framework, GPE has supported the government of Somalia in spearheading a strategic and structural shift to the use of country systems for program implementation.

In 2019, GPE initiated use of the government financial modality by transferring 20% of its grant—US$25.8 million for 2018-2023, implemented by CARE international—through the TSA held at the ministry of finance.

In 2020, GPE further strengthened the use of country systems as 25% of another grant—$20 million for 2020-2023, implemented by Save the Children—went directly through the TSA. This aligned the GPE funds not just with the ministry of education but also with the systems and procedures of the ministry of finance, Central Bank, Parliament, local government and the National Audit Office.

This alignment ensured that the GPE funds are part of the implementation processes and accountabilities of the regular national budget.

Somalia’s latest GPE grants—$81.7 million for 2024-2027, implemented by CARE international and Save the Children—is channeling an unprecedented 72% of the program budget through the TSA.

This approach has not just reshaped the grant management landscape but also bolstered government leadership and ownership as well as capacity at both the federal and federal member state level.

The government-led, GPE-funded program in 2020-2023 intended to bridge capacity gaps and instill confidence in the education sector's ability to deliver impactful interventions. Program activities included training of financial management staff at the federal member state level, construction of ministry offices, payment of salaries and administration of examinations, among others.

Strengthening partnership values and government ownership

Channeling funding through the TSA has led to strengthened financial management and the acceleration of joint government-led initiatives. It has enabled the government of Somalia to manage public resources through their own institutions and using their own system.

The collaboration between different government entities, particularly the ministry of finance and ministry of education, has streamlined financial transactions, enhancing transparency and empowering government officials at various levels to work together toward a common goal.

“The GPE-funded program brought flexibility, government ownership and alignment with government priorities."

Ministry of education official, Galmudug State, Somalia

Following a GPE-led capacity needs assessment, education ministry offices were constructed or rehabilitated and furnished in Galmudug State and South-West State, and at the federal ministry headquarters in the capital city of Mogadishu.

The provision of facilities and office spaces boosted ministry capacity, and the construction works were managed through the government public procurement system.

The ministry of education offices in Dhusamareb, the capital city of Galmudug State, Somalia, were constructed with support from GPE. Credit: Save the Children
The ministry of education offices in Dhusamareb, the capital city of Galmudug State, Somalia, were constructed with support from GPE.
Credit:
Save the Children

The program also enabled capacity building initiatives and training of the financial management teams at the federal member state level. This was achieved through secondments of administration and finance staff at federal member state education ministries to the Federal ministry of education, culture and higher education for on-the-job training.

This training is attributed to strengthening the education ministry’s capacity to comply with relevant regulations as well as enhancing accountability to both the public and donors.

The initiative has led to improved competencies in budget planning and monitoring, cash flows and procurement procedures.

“The GPE-supported program has transformed the financial management system in our state. Before the program, we managed small projects; now we have more capacity to handle bigger projects.”

Ministry of education official, Galmudug State, Somalia

Prior to using the new TSA financing modality, the government was unable to channel funds to schools using its own systems, and GPE programs have helped change that by establishing financial infrastructure that enables government and donor funds to flow from the central level to the school level.

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