Partnership for Economic Growth

Funding Level:
$20.9  million                                                                                                                                                                              

Duration
April 2011 – August 2015 

Activity Goals:

  • Improve the investment climate and promote private sector development
  • Create jobs in livestock, farming, agribusiness, and energy production
  • Provide skills training and capital to the private sector
  • Support local farmers and veterinary institutions to increase agriculture production and protect the health of livestock

Activity Accomplishments:

  • 1,000 farmers trained in new technologies or management practices
  • $2 million provided to small and medium enterprises
  • 4 investment deals initiated to expand wind energy, resulting in a 20-fold increase in power generation capacity from wind technology

Implementing Partner:
Development Alternatives Inc. (DAI)

 Key Partners:

  • Somaliland Ministry of Mining, Energy, and Water Resources
  • Somaliland Ministry of Commerce,
  • Somaliland and Puntland Chambers of Commerce and Ministries of Livestock
  • Amoud University
  • Federal Government of Somalia Ministry of Agriculture
  • Benadir University

Activity Locations:
Somaliland, Puntland, South Central Somalia.

ACTIVITY OVERVIEW
USAID’s Partnership for Economic Growth (PEG) is a nationwide activity that facilitates collaboration between local governments and the private sector to accelerate economic growth, increase investment, and generate productive employment. By working with small and medium enterprises, producer organizations, women’s groups, trade and business associations, community-based organizations, and government counterparts, PEG is improving the investment climate across Somalia, creating jobs, and introducing new and better products to the local market. PEG also works with all levels of government across Somalia to support the development of policies and regulatory frameworks that create an enabling environment for business growth.

ACTIVITY AREAS
The Partnership invests in Somali people to benefit the local economy and strengthen promising value chains including agriculture, livestock, and energy. For example, in cooperation with local partners in South Central Somalia, the Partnership trains farmers and provides inputs, such as good quality seeds, fertilizers, and tractors, to increase production of vegetable, fruit, and maize crops, and enhance food security.

In Puntland, the Partnership supports the Ministry of Livestock to improve community-based animal health services and strengthen veterinary drug supplies.

In Somaliland, the Partnership collaborates with the Ministry of Mining, Energy, and Water Resources and independent power producers to pilot wind energy projects to improve access and reliability of clean energy. To govern energy and electricity production, supply, and distribution, USAID supports Somaliland as it establishes its first legal and regulatory framework.

In addition, to increase investment opportunities, the Partnership offers technical advice, facilitates workshops with global investment promotion experts, and provides specialized software to capture investment data for the Puntland Chambers of Commerce and Somaliland Ministry of Commerce’s Investment Climate Unit. In doing so, local and international knowledge of investment opportunities expands.

ACTIVITY IMPACT
In order to improve food security and boost local agriculture sales, the Partnership trains farmers, dairy producers, and local agribusinesses in South Central Somalia in crop production, storage and hygiene, and quality control. Three demonstration farms have been established so that farmers are able to test local seed varieties of maize and vegetables and learn better farming techniques, leading to increased yields of up to 70% and a greater variety of produce for the local market, enhancing food security and drought resilience.

As a means of increasing the incomes of pastoralists, the Partnership trains community-based animal health workers and veterinary pharmacists to make better quality drugs and accurate prescriptions of veterinary drugs more available. Supporting animal health can result in higher prices of up to 20% per head, contributing to better livelihoods for pastoralists, traders, and the local community.

To bolster private sector development, USAID launched the second round of the Partnership Fund in Somaliland, a $2 million matching grant activity that addresses the lack of financial capital. The second round of the Fund is co-financing 12 microenterprises working across a number of sectors, including agriculture, livestock, agro-processing, fisheries, and alternative energy. By the end of the program, 1,300 new or better jobs will be created, better products will be available for local purchase, and new food markets will be accessible.

USAID Contacts:
Tyler Beckelman, Director
USAID/Somalia
Tel: +254 20 862 2834
Email: tbeckelman@usaid.gov

Marybeth McKeever
USAID/Somalia Economic Growth Team
Tel: +254 20 862 2191
Email: mmckeever@usaid.gov

Partnership for Economic Growth
Njuru Ng'ang'a
Program Manager/Chief of Party
DAI
Tel: +252 634 752 763
Email: njuru_nganga@dai.com