DOCSLIB.ORG

Annual Report for the Year Ending December 31, 2016

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Annual Report for the Year Ending December 31, 2016 i Central Bank of Somalia Mogadishu – Somalia To request a complimentary copy of this report, Contact at: [email protected] An electronic copy is available at www.centralbank.gov.so 55 Corso Somalia P. O. Box 11 Mogadishu, Somalia Phone: +(252) 1866131 +(252) 1866151 +(252) 1866152 Fax: +2521241152 ii CONTENTS Table of Contents ............................................................................................................iii List of Tables .............................................................................................................. iv List of Charts................................................................................................................v List of Acronyms............................................................................................................ vi Governor’s Massage ......................................................................................................... 1 Preface ................................................................................................................... 2 1. World Economy .......................................................................................................... 6 1.1 Financial Flows........................................................................................... 8 1.2 Remittances to Developing Countries ............................................................. 9 2. Domestics Economy ..................................................................................................... 11 2.1 Livestock.................................................................................................... 12 2.3 Fishery ...................................................................................................... 14 2.4 Domestic Industry Production ........................................................................ 15 2.5 Remittance ................................................................................................. 16 2.6 Exchange rate Development .......................................................................... 16 2.7 Inflation Outlook.......................................................................................... 18 3. Fiscal policy management ................................................................................................ 20 3.1. Budgetary operations .................................................................................. 20 3.2. REVENUE AND GRANTS ............................................................................... 21 3.3 EXPENDITURE ............................................................................................. 22 4. Balance of Payment ..................................................................................................... 24 5. Financial Sector Development ............................................................................................. 30 6. Monetary Policy ........................................................................................................ 34 7. Corporate Governance ................................................................................................... 37 7.1 Board of Directors resolution in 2016 .............................................................. 37 Appendix 1: Somalia Trade with Uae .......................................................................................... 44 Appendix 2: Oil Imports Survey 2016......................................................................................... 47 2.1Gasoline importation and consumption ............................................................. 48 2.2Diesel Fuel .................................................................................................. 49 2.3LPG Gas ...................................................................................................... 50 2.4JET Gas ...................................................................................................... 50 8. Financial Performance ................................................................................................... 52 iii LIST OF TABLES Table 1: Actual and projected output /Growth of selected countries/ regions (percentage change ....................8 Table 2: National Income and Prices, 2013-2016 ........................................................................................................... 12 Table 3: livestock export 2015-16...................................................................................................................................... 12 Table 4: Fishery 2016........................................................................................................................................................... 14 Table 5 : Domestic Industry Production, 2016 In millions of US Dollars ................................................................... 15 Table 6 : Monthly Exchange Rate in SOS.......................................................................................................................... 17 Table 7: Summary of Revenue and Expenditure 2015-2016........................................................................................ 20 Table 8a: Balance of Payments 2015-16 .......................................................................................................................... 26 Table 9: External Public Debt (2014-2016) In Millions of US Dollars ......................................................................... 28 Table 10: Financial Data of the Six Licensed Banks, 2014-2015 .................................................................................. 32 Table 12 (a) : Non-oil trade UAE 2016 .............................................................................................................................. 45 Table 13 (b): Somali Non-Trade Oil with UAE 2011-2016............................................................................................. 45 Table 14: Oil Imports ............................................................................................................................................................ 47 Table 15: Value Import (In USD)of Oil ............................................................................................................................. 51 iv LIST OF CHARTS Chart 1: Fishery, 2016........................................................................................................................................................... 14 Chart 2 : Exchange Rate 2016 ............................................................................................................................................. 18 Chart 3: CPI (% Change)........................................................................................................................................................ 18 Chart 4: Composition of Revenue ................................................................................................................................. 22 Chart 5: composition of Expenditure ………………………………………………………………………………………………………….22 Chart 6: Gasoline in metric tons, 2013-2016 ................................................................................................................... 48 Chart 7: Diesel in metric tons, 2013-2016........................................................................................................................ 49 Chart 8: LPG Gas ................................................................................................................................................................... 50 Chart 9: JET Fuel..................................................................................................................................................................... 51 Chart 10: Oil Consumption in Somalia (Barrel per day) ................................................................................................ 51 v LIST OF ACRONYMS AFDB African Development Bank (AFDB), AML/CFT Anti Money Laundering and Combating of Terrorism BODs Board of Directors CBS Central Bank of Somalia CPI Consumer Price Index DMU Debt Management Unit (DMU) FAO Food and Agriculture Organization FGS Federal Government of Somalia FMS Federal Member States GDP Gross Domestic Product HIPC Heavily Indebted poor Countries (HIPC) IDA International Development Association IFIs International Financial Institutions IMF International Monetary Fund LPG Liquefied Petroleum Gas MDAs Ministries departments and agencies MDRI Multilateral Debt Relief Initiative (MDRI) MOF Ministry of Finance MTBs Money Transfer Business Service OAG Office of the Accountant General RDNA Rapid Drought Needs Assessment SFMIS Somali Financial Management Information System SMP Staff– Monitored Program SOS Somali shillings TA Technical assistance TSA Treasury Single Account vi UAE United Arab Emirates UN United Nations US United States of America WEO World Economic Outlook vii GOVERNOR’S MASSAGE It is with great pleasure that we present our annual report for the year ending December 31, 2016. This report highlights key performance matrices, challenges and milestones achieved over the course of this reporting period. To deliver on our mandate as provided under Article 47 of the Central Bank of Somalia Act, we present this annual report along with audited financial statements for the covered period. During this period, the Central Bank of Somalia made significant progress in key functional areas. We strengthened our regulatory
Load more

Recommended publications
  • The World Bank Official Ibrd* Ida I Wormd Bankgroup Documents
    THE WORLD BANK OFFICIAL IBRD* IDA I WORMD BANKGROUP DOCUMENTS ,2018 Public Disclosure Authorized H.E. Abdirahman Duale Beileh Minister of Finance Federal Republic of Somalia Villa Somalia MOGADISHU Excellency: SMPF Grant Nos. TF0A1688 and TF0A8094 (Somali Core Economic Institutions and Opportunities Project-Phase 1) Amendment to the Grant Agreement Public Disclosure Authorized We refer to the Grant Agreement (the "Agreement") between Federal Republic of Somalia ("Recipient") and the International Development Association ("World Bank") acting as administrator of the Somalia Multi-Partner Fund dated February 15, 2016. We propose to amend the Agreement as set forth in this letter ("Amendment"): 1. The cover page of the Agreement is amended as follows: (a) "SMPF Grant Number TFOA1688 and TF0A8094" Any reference in the Agreement to, "Grant Number", shall be reference to, "SMPF Grant Numbers TFOA 1688 and TF0A8094". Public Disclosure Authorized 2. Section 3.01 of the Agreement is amended as follows: "The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant: (a) in an amount equal to three million three hundred thousand United States Dollars ($3,300,000) ("Grant No. TF0A1688"); and (b) in an amount equal to seven million two hundred ninety thousand United States Dollars ($7,290,000) ("Grant No. TF0A8094"), to assist in financing the Project." 3. Schedule I to the Agreement is amended as set forth in the Annex I to this Amendment. 4. The table set forth in Section IV.A.2 of Schedule 2 to the Agreement is amended as set forth in the Annex 2 to this Amendment.
    [Show full text]
  • "4J'1111 .3.J11 UNIAO AFRICANA
    AFRICAN UNION UNION AFRICAINE "4j'1111 .3.J11 UNIAO AFRICANA P.O. Box: 3243, Addis Ababa, Ethiopia, Tel.:(251-11) 551 38 22 Fax: (251-11) 551 93 21 Email: situation [email protected], oau -ewsj ethionet.et __ PEACE AND SECURITY COUNCIL 214TH MEETING 8 JANUARY 2010 ADDIS ABABA, ETHIOPIA PSC/PR/2(CCXIV) REPORT OF THE CHAIRPERSON OF THE COMMISSION ON THE SITUATION IN SOMALIA PSD/PR/2(CCXIV) Page 1 REPORT OF THE CHAIRPERSON OF THE COMMISSION ON THE SITUATION IN SOMALIA 1. INTRODUCTION 1. At its 194th meeting held on 15 June 2009, Council reviewed developments in Somalia on the basis of the report I presented on the situation in that country [PSC/PR/2(CXCIV)]. Council adopted communique PSC/PR/COMM.(CXCIV), in which it, among others, decided to renew the mandate of the African Union Mission in Somalia (AMISOM) for a period of seven months, beginning from 17 June 2009. 2. The present report provides an update on the developments that have taken place in Somalia since June 2009. It concludes with observations and recommended actions on the way forward, including the renewal of AMISOM mandate for a further period of 12 months, starting from 17 January 2010. POLITICAL SITUATION 3. During the period under review, the Transitional Federal Government (TFG) has continued to experience many challenges, mainly as a result of the continued attacks by armed extremists groups, supported by foreign elements. In addition to the continued insecurity in most parts of Somalia, the TFG also faces the challenges of weak capacity of security and public sector institutions, delays in articulating and implementing a clear political roadmap, clan divisions and other internal problems within the Government, lack of resources for the provision of basic services, and inadequate organization and coordination of sufficient and continued partner support.
    [Show full text]
  • Doing Business in a War Zone: Somali Banks and Telecoms Providers
    04/2019 Doing Business in a War Zone: Somali Banks and Telecoms Providers Key findings: businesses have complied or not and the reactions of other actors to the new regulations. 1.Banks and telecoms companies are ready and able to implement higher compliance and regulatory We found that major businesses proactively complied standards, but the government is too weak to design with the laws; most did so on their first day of and implement them. operation. Banks had strict Know Your Customer and due diligence systems in place from the outset, before 2. Although the telecoms companies are accused of the government required them to do so. Being part of refusing to implement the provisions of the Telecoms a globalised economy, they complied with global Act, the key unimplemented rules require government standards even if the government did not require them action, principally the adoption of a national identity to do so. system and an improvement in security. Data protection and privacy was also looked at in 3. The telecoms companies have adapted to the security order to identify loopholes and space for situation in Somalia to grow their businesses and have improvement. We found that local considerations had disallowed location services and metadata collection. created a culture of cautiousness when it came to data 4. Telecoms companies make it difficult to retrieve retention and access. The businesses are years ahead call logs data, even by users, in order to avoid local of the government in this regard; Somalia has no data polities making the same requests. protection law, and none seems to be in the works.
    [Show full text]
  • Somalia Economic Update
    Federal Republic of Somalia SOMALIA ECONOMIC UPDATE August 2018 | Edition No. 3 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Rapid Growth in Mobile Money: Public Disclosure Authorized Stability or Vulnerability? Federal Republic of Somalia SOMALIA ECONOMIC UPDATE RAPID GROWTH IN MOBILE MONEY: STABILITY OR VULNERABILITY? August, 2018 MACROECONOMICS, TRADE & INVESTMENT AFRICA TABLE OF CONTENTS ACKNOWLEDGEMents ....................................................................................................................... ii FOREWORD .......................................................................................................................................... iii ARAR .................................................................................................................................................... iv EXecUTIVE SUMMARY ......................................................................................................................... v NUXURKA SOO KoobIDDA .................................................................................................................. x PART I. Recent Economic Developments .................................................................................................... 2 1.1 Growth is recovering modestly—but it has not dented poverty .................................................. 2 1.2 Real GDP growth weakened in 2017 ............................................................................................. 2 1.3
    [Show full text]
  • Partnership-Press-Release-.Pdf
    FOR IMMEDIATE RELEASE Visa partners with Premier Bank to accelerate the growth of electronic payments in Somalia Nairobi, KENYA: 24, 2016 – Visa Inc. has partnered with Somalia’s Premier Bank as part of a wider strategic agreement to strengthen formal banking services in Somalia. As a first step the agreement signed between the two parties will enable Visa cardholders in Somalia to use Premier Bank’s ATM network. “We are delighted to partner with Premier Bank as our first client in Somalia. Visa continues to be at the forefront to help build sustainable financial institutions and inclusive financial systems. We hope that this partnership will encourage further electronification of commerce in Somalia,” said Visa General Manager, Southern and East Africa, Jabu Basopo. The ATM channel makes provision for services such as cash withdrawals and balance enquiries. In addition the wider Point of Sale acceptance footprint is growing, and Visa cardholders can also pay for goods and services from merchants that accept Visa across the country. “This partnership is bound to accelerate the growth of electronic payment in Somalia and ensure that as many Somalis as possible are brought into the formal banking system,” added Mahat Mohamed Ahmed, Managing Director of Premier Bank. Premier Bank will continue to be at the forefront of innovation and will continue to look for new ways of giving Somalis the means to enhance their financial prospects. Visa will support Premier Bank by engaging with key stakeholders to assist where possible on infrastructural challenges and ensure that innovative payment solutions enable financial inclusion for Somalia’s population.
    [Show full text]
  • [Project Title]
    ANNEX 6.1 - REGULATORY ENVIRONMENT ANALYSIS 1.1 OVERVIEW Several regulations and pieces of legislation currently exist to support the Somalia Information and Communications Technology (ICT) and mobile money sectors. However, due to a lack of resources and capacity, as well as the political context, these regulations are not updated or poorly implemented by the government, leaving mobile money providers to self-regulate. Government structures regarding mobile money are similar across the three regions. The Central Banks are the main authorities when it comes to financial institutions and mobile money. The Ministries of Posts, Telecommunications and Technology (Ministry of Communication and Information Technology in Somaliland) are the authorities that oversee the ICT sector. Supporting institutions include the Ministries of Finance in all three regions. South-Central Somalia is the most developed in terms of mobile money regulations. The Somalia Mobile Money Regulation is the most significant piece of legislation with regards to mobile money in South Central and was passed by the Somalia Parliament in 2019. A similar regulation is currently being developed in Somaliland, with hope of being approved by the Somaliland Parliament before 2021. Puntland is the least developed in terms of regulation, relying heavily on South-Central regulations. 1.2 MAIN GOVERNMENT BODIES AND REGULATORS In South-Central Somalia, the Central Bank of Somalia (CBS) is the main government body that oversees and regulates mobile money. The Ministry of Posts, Telecommunications and Technology (MoPTT) is the main supporting body as it oversees the telecommunications sector. Other supporting bodies include the Ministry of Finance and the National Communications Agency (NCA).
    [Show full text]
  • Somalia Country Study
    Somalia Country Study A part of the report on Informal Remittance Systems in Africa, Caribbean and Pacific (ACP) countries (Ref: RO2CS008) Commissioning institutions: Department of International Development (DFID) UK European Community’s Poverty Reduction Effectiveness Programme (EC-PREP) Deloitte & Touche Anna Lindley University of Oxford 15 January 2005 ESRC Centre on Migration, Policy and Society (COMPAS) University of Oxford, 58 Banbury Road, Oxford OX2 6QS, UK T - +44/0 1865 274711, F - +44/0 1865 274718, I – www.compas.ox.ac.uk Contact: [email protected] Table of contents 1. Introduction ............................................................................................................... 2 2. Somalia, migration and remittances........................................................................ 2 Somalia .............................................................................................................................2 Migration ...........................................................................................................................4 Remittances ......................................................................................................................5 3. Types of remittance systems in Somalia ................................................................ 8 Hand delivery of remittances.............................................................................................8 Trade-based remittance systems......................................................................................8
    [Show full text]
  • SOMALIA-SCD-08152018.Pdf
    A Document of The World Bank Group Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No. 123807-SO FEDERAL REPUBLIC OF SOMALIA SYSTEMATIC COUNTRY DIAGNOSTIC Public Disclosure Authorized May 1, 2018 Public Disclosure Authorized Public Disclosure Authorized i SOMALIA – GOVERNMENT FISCAL YEAR January 1 – December 31 CURRENCY EQUIVALENTS (Exchange Rate Effective as of April 1, 2018) Currency Unit: = Somali Shillings (SOS) US$1.00 = TZS 577 Abbreviations and Acronyms AfDB African Development Bank AMISOM African Union Mission in Somalia AML Anti-Money Laundering AS Al Shabaab ASWL Association of Somalia Women Lawyers CAMEL Capital, Assets, Management, Earnings, Liquidity CBS Central Bank of Somalia CFT Combating the Financing of Terrorism COGWO Coalition of Grassroot Women’s Organizations DFID Department for International Development DG District Government EEZ Exclusive Economic Zone FAO Food and Agriculture Organization FATF Financial Action Task Force FGC Financial Governance Committee GCC Gulf Cooperation Council GBV Gender-based violence GBVIMS GBV Information Management System GDP Gross Domestic Product HH Household ICT Information and communication technology IDA International Development Association IDLO International Development Law Organization IDP Internally displaced people IGAD Inter-Governmental Authority on Development IMF International Monetary Fund INDC Intended Nationally Determined Contribution INPB Interim National Procurement Board IPCC Intergovernmental Panel on Climate Change's IPV Intimate partner violence IRC
    [Show full text]
  • Guidebook Investment & Financing in Somalia
    GUIDEBOOK INVESTMENT & FINANCING IN SOMALIA A Practical Guide to Partnering and Cooperation for Finnish and Somali Companies 2019 GUIDEBOOK INVESTMENT & FINANCING IN SOMALIA A Practical Guide to Partnering and Cooperation for Finnish and Somali Companies 2019 Finnpartnership / Manketti Ltd. / EuroAfrica Consulting and Services Ltd. Printed: 2019 Authors: Janne Sykkö, Yusuf M. Mubarak, Abdirisak Adam Front Cover Photos: Stuart Price / AU-UN IST PHOTO; Janne Sykkö; AMISOM Charts and Tables: Manketti Ltd. and different sources Design and Layout: Maria Nurminen ISBN (hakemus käsittelyssä) (nid.) ISBN (hakemus käsittelyssä) (PDF) PREAMBLE This financial guide will serve Finnish and Somali companies aiming to make business partnerships, projects and investments in Somalia’s market. The guide provides selected information about the main financing organisations in Somalia. In addition, it provides information about both international and local institutions interested in investing and/or supporting investments in Somalia. Somalia is recovering from instability and wars. The country holds a lot of business potential for investments, and it has been making substantial economic growth and positive progress in the recent years. From the point of view of financial markets and business operations, challenges to security and instability are greatly reducing, although several challenges still exist. As a fragile state, Somalia is in a process of renewing and reformulating its financial, monetary, taxation and company laws. Also, there remain some challenges for companies related to the monetary transactions. This is because Somalia is not yet well connected to international financial institutions and banks. However, Somalia is making close cooperation with the IMF and the World Bank, as a part of the process to pardon the country’s debt.
    [Show full text]
  • The World Bank Report on Somalia Economic Update
    October 2015 | Edition No. 1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Transition amid Risks with a Special Focus on Intergovernmental Fiscal Relations Public Disclosure Authorized Macroeconomic and Fiscal Global Practice Transition amid Risks with a Special Focus on Intergovernmental Fiscal Relations TABLE OF CONTENTS ABBREVIATIONS ............................................................................................................................................................ i FOREWORD ................................................................................................................................................................... iii ACKNOWLEDGEMENTS ................................................................................................................................................. v MAIN MESSAGES AND KEY RECOMMENDATIONS ....................................................................................................... vi EXECUTIVE SUMMARY .................................................................................................................................................. ix PART I: Social, Economic, and Governance Status ....................................................................................................... 1 1. Context and Objectives ......................................................................................................................................... 2 2. Social and Poverty Status .....................................................................................................................................
    [Show full text]
  • Mapping of Financial Services for Shgs and Barriers for Women to Access Microfinance
    Mapping of Financial Services for SHGs and Barriers for Women to Access Microfinance Services in Somalia May 2020 Nathaniel Calhoun Courtenay Cabot Venton Toscane Clarey Prof. Abdirisak Dalmar and Farah Bashir, Somali Disaster Resilience Institute Legal Notice and Disclaimer Photo on cover page: Dalsan Self Help Group in Obosibo-Halane, Mogadishu. © Concern Worldwide. This report is not a legally binding document. It is a collaborative informational and assessment document and does not necessarily reflect the views of any of the contributing partners or funding agencies in all of its contents. Any errors are the sole responsibility of the authors. Copyright © Concern Worldwide. May 2020 Mapping of Financial Services for SHGs and Barriers for Women to Access Microfinance Services in Somalia Concern Worldwide is a non-governmental, The Share Trust is a trans-disciplinary collective at international, humanitarian organisation that works work on research, development and outreach to towards reducing suffering and the elimination of amplify and unite Self Help Groups and connected extreme povertyin the world’s pootrest countries. organizations around the world. Self Help Groups The organisaition was founded in march 1968 in are voluntary groups, typically comprised of 15-20 Dublin and has worked in over 50 countries with people who meet every week to save, start small more than 3,200 staff of 50 nationalities. Concern business activities, and create change both for Worldwide’s mission is to permanently transform themselves and their communities. The Share Trust the lives of people living in extreme poverty.tacking is always looking for new ways to connect, consult its root causes and building resilience.
    [Show full text]
  • BTI 2020 Country Report — Somalia
    BTI 2020 Country Report Somalia This report is part of the Bertelsmann Stiftung’s Transformation Index (BTI) 2020. It covers the period from February 1, 2017 to January 31, 2019. The BTI assesses the transformation toward democracy and a market economy as well as the quality of governance in 137 countries. More on the BTI at https://www.bti-project.org. Please cite as follows: Bertelsmann Stiftung, BTI 2020 Country Report — Somalia. Gütersloh: Bertelsmann Stiftung, 2020. This work is licensed under a Creative Commons Attribution 4.0 International License. Contact Bertelsmann Stiftung Carl-Bertelsmann-Strasse 256 33111 Gütersloh Germany Sabine Donner Phone +49 5241 81 81501 [email protected] Hauke Hartmann Phone +49 5241 81 81389 [email protected] Robert Schwarz Phone +49 5241 81 81402 [email protected] Sabine Steinkamp Phone +49 5241 81 81507 [email protected] BTI 2020 | Somalia 3 Key Indicators Population M 15.0 HDI - GDP p.c., PPP $ - Pop. growth1 % p.a. 2.8 HDI rank of 189 - Gini Index - Life expectancy years 56.7 UN Education Index - Poverty3 % - Urban population % 45.0 Gender inequality2 - Aid per capita $ 120.7 Sources (as of December 2019): The World Bank, World Development Indicators 2019 | UNDP, Human Development Report 2019. Footnotes: (1) Average annual growth rate. (2) Gender Inequality Index (GII). (3) Percentage of population living on less than $3.20 a day at 2011 international prices. Executive Summary The beginning of the review period saw a presidential election in Somalia. Mohamed Abdullahi Mohamed, commonly known by his nickname “Farmaajo,” was elected as new president in January 2017.
    [Show full text]