STRATEGIC PLAN

2019 - 2023

The Ministry of Finance continues to pursue a transparent, Citizen-focused and

participatory fiscal approach that makes no compromise in fiscal discipline in-line
with its principles of responsibility and accountability.
Table of Contents
LIST OF ACRONYMS ............................................................................................................................................... 3
FOREWORD ........................................................................................................................................................... 4
MINISTER OF FINANCE ....................................................................................................................................................4
DIRECTOR GENERAL ........................................................................................................................................................5
ORGANOGRAM OF THE MINISTRY OF FINANCE DEVELOPMENT ............................................................................ 6
CHAPTER 1: INTRODUCTION .................................................................................................................................. 7
1.1. HIGH-LEVEL STATEMENTS ...................................................................................................................................7
1.1.1. Mandate ..............................................................................................................................................7
1.1.2. Vision ...................................................................................................................................................7
1.1.3. Mission ................................................................................................................................................8
1.1.4. Core Values ..........................................................................................................................................8
1.1.5. Legal and Policy Context ......................................................................................................................8
1.2. PURPOSE AND OBJECTIVES OF THE STRATEGIC PLAN.................................................................................................9
1.3. LINK OF THE STRATEGIC PLAN TO THE NPDII ..........................................................................................................9
CHAPTER 2: SITUATIONAL ANALYSIS .................................................................................................................... 11
2.1. SWOT ANALYSIS ............................................................................................................................................11
2.2. PESTEL ANALYSIS...........................................................................................................................................12
2.3. LESSONS LEARNT.............................................................................................................................................13
CHAPTER 3: STRATEGIC DIRECTION, GOALS AND OBJECTIVES .............................................................................. 14
3.1. STRATEGIC DIRECTIONS ....................................................................................................................................14
3.2. STRATEGIC GOALS AND OBJECTIVES ....................................................................................................................14
CHAPTER 4: MATRIX OF THE STRATEGIC PLAN ..................................................................................................... 17
CHAPTER 5: MONITORING AND EVALUATION...................................................................................................... 20
5.1. RISK ANALYSIS ................................................................................................................................................20
5.2. MONITORING AND EVALUATION ........................................................................................................................20
CHAPTER 6: DEPARTMENTAL PLANS .................................................................................................................... 22
6.1. PUBLIC FINANCIAL MANAGEMENT (PFM) ...........................................................................................................22
6.2. ACCOUNTANT GENERAL OFFICE .........................................................................................................................25
6.3. PRIVATE SECTOR AND FINANCIAL SERVICES DEPARTMENT.......................................................................................29
6.4. MACROECONOMIC AFFAIRS & STATISTICS DEPARTMENT ........................................................................................31
6.5. INTERNAL AUDIT DEPARTMENT ..........................................................................................................................34
6.6. BUDGET AND PLANNING DEPARTMENT ...............................................................................................................36
6.7. PROCUREMENT DEPARTMENT ...........................................................................................................................40
6.8. HUMAN RESOURCE DEPARTMENT ......................................................................................................................42
6.9. ADMINISTRATIVE SERVICES AND FINANCE DEPARTMENT .........................................................................................45
6.10. INTEGRATED FINANCIAL MANAGEMENT & INFORMATION SYSTEMS ..........................................................................47
6.11. CUSTOMS DEPARTMENT ...................................................................................................................................51
6.12. LEGAL SERVICES DEPARTMENT ...........................................................................................................................54
6.13. PUBLIC RELATIONS & INFORMATION DEPARTMENT ...............................................................................................56
6.14. INLAND REVENUE DEPARTMENT.........................................................................................................................58

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List of Acronyms
AG Accountant General
GDP Gross Domestic Product
GoSL Government of Somaliland
GST Goods and Services Tax
ICT Information and Communication Technology
KPI’s Key Performance Indicators
MDG Millennium Development Goals
MoFD Ministry of Finance Development
NDP II Second National Development Plan
PDMS Public Debt Management Strategy
PESTEL Political, Economic, Social, Technological, Environment, Legal
PFM Public Finance Management
SDG Sustainable Development Goals
SLFMIS Somaliland Financial Management Information System
SP Strategic Plan
SWOT Strengths, Weaknesses, Opportunities and Treats/Challenges

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Foreword
Minister of Finance

This strategic plan covers the period of

2019 – 2023 and maps out the vision,
mission, mandate and core values of the
Ministry of Finance Development. The aim
is to enhance the operational performance
of the Ministry, ensure the prudent
management of the public’s resources,
deliver fundamental regulatory oversight
and diligently manage the government’s
liabilities. This will allow the government to
fulfill its commitment to lift Somaliland out
of poverty, maintain stability and
democracy in line with Vision 2030.

The formulation of the 2019 - 2023 Strategic Plan is done at a time when the Ministry of Finance
Development has adopted a new dynamic performance management system to improve
service delivery and accountability to the public. The groundwork of this plan followed a
comprehensive process in which all key stakeholders were consulted. The purpose was to
nurture a common understanding of the Strategic Plan to enhance commitment and instill a
sense ownership for its successful implementation.

I am therefore pleased to introduce this five year (2019-2023) Strategic Plan of the Ministry of
Finance Development to all partners. I take this opportunity to reiterate my commitment to
provide the necessary support for the successful implementation of the plan. I also expect
every department of the Ministry to work towards our strategic goals and objectives, and
believe in our ability to successfully implement our strategic goals.

Dr. Saad Ali Shire

Minister of Finance Development

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Director General

The Ministry of Finance Development

(MoFD) derives its mandate from the
Constitution of the Republic of Somaliland,
the Public Financial Management Act, and
other Revenue and Expenditure Acts and
Regulations. The Ministry plays an essential
role in the management of the country’s
economy through the formulation and
implementation of efficient and effective
public finance policies that will promote
sustainable growth.

For the first time, the Ministry has developed

a five-year strategic plan (2019 – 2023) to
help guide our efforts and make us effective
custodians of the public’s finances. The plan redefines the core functions and priorities of the
Ministry in line with our mandate, the National Development Plan II and the first pillar of
Somaliland’s National Vision 2030. It aims to deliver a useful framework that will catalyze a
positive transformation of the country’s economy—including job creation and improved
wellbeing for every citizen.

I would like to thank the Minister of Finance Dr. Saad Ali Shire, for taking the lead to develop
this 5-year Strategic Plan. I would also like to thank every Staff member, consultant and
partner who contributed to its development. I expect all of us to work diligently to make sure
that we succeed in meeting the strategic targets and objectives highlighted in this plan.

Maxamed Cabdi Gurxan

Director General

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Organogram of the Ministry of Finance Development

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Chapter 1: Introduction
As mandated by the Constitution of Somaliland, the Ministry of Finance Development is
responsible for economic policy making and for the general management of the public’s
financial resources. The ministry plays an important role in the mobilization of resources
for the whole Government, and consequently in catalyzing sustainable growth—on par
with emerging economies. The following strategic plan has been designed to help guide
the ministry in the next 5 years to make sure that identified capacity gaps are addressed
and that the right systems are in place to facilitate service delivery.

Over the past few years, the Ministry of Finance Development has introduced several
reforms aimed at improving the performance of the ministry—namely reforms to Public
Financial Management (PFM) systems and processes. The objective of the PFM reforms,
as highlighted in the PFM reform strategy, is ‘’to have in place a holistic, country-led PFM
reform strategy’’. This aims to provide a broad strategic framework, establish priorities
and sequencing of tasks and provide an actionable plan for short, medium and long-term
sustainable changes. The ultimate goal is to ensure efficient, effective and accountable use
of public resources as a basis for economic development and poverty eradication. In other
words, the reform program is needed to improve the government’s capabilities to
efficiently direct public financial resources towards meeting the NDPII targets and the
broader goals of Vision 2030.

1.1. High-level Statements

1.1.1. Mandate
The ministry is mandated to:

• Formulate sound economic and fiscal policies that mobilize internal and external
financial resources for public expenditure.
• Enhance national economic stability, by focusing on socio-economic development
as a tool of poverty reduction.
• Regulate financial management, oversee national planning, ensure effectiveness
and efficiency of revenue collection and expenditure, and set the directions of the
strategic development initiatives for economic growth.
• Manage budget planning, formulation of the macroeconomic policy, State assets,
liabilities, and revenue fund and debt management.

1.1.2. Vision
The Ministry of Finance Development is a catalyst institution that promotes sustainable
economic development and is the custodian of the nation’s financial resources. We (the
Ministry of Finance) hold ourselves accountable to the nation to discharge our
responsibilities professionally and with humility, with the aim of promoting growth and
prosperity for all. We aspire to excellence in the quality of our analysis, our advice and
the execution of our financial management responsibilities. We aim to realize the full
potential of GoSL’s economy and of its people.

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 1.1.3. Mission
• Improve Revenue mobilization by efficiently and equitably administering revenue
instruments
• Prepare a sound and sustainable National Budget
• Set the country’s macroeconomic and fiscal policy direction
• Formulate effective policies for sustainable development
• Instill transparency and accountability in the management of public resources

1.1.4. Core Values

As custodians of the nation’s financial resources, the Ministry acknowledges the authority
of the Parliament through which we are accountable to the nation. We value teamwork,
sound planning and enthusiasm, and we strive to continually improve the quality, accuracy
and reliability of our service delivery. The following standards of behavior encompass the
Ministry’s core values in fulfilling its mandate:

Standard: Clear level of quality services within the private and the public sector.

Professionalism: A high level of competency and strict adherence to courtesy, honesty

and responsibility when dealing with government institutions, internal members as well as
external stakeholders.

Integrity: High character, respect, fairness, open communication that fosters

collaboration.

Accessibility: Accommodation of service users.

Accountability: Obligation of the ministry to accept its responsibility, transparently

disclosing the results.

Transparency: The ministry is obliged to conduct activities honestly and ethically. All
individual members conduct business with honesty, fairness, respect and high character.

Efficiency and Effectiveness: To continuously seek excellence in the delivery of services

while ensuring fiscal discipline.

Teamwork: Create successful operational relationships with team members by treating

others justly, upholding and preserving an amicable atmosphere, sustaining and
nourishing honest and open two-way communications.

1.1.5. Legal and Policy Context

The highlighted policy, legal and regulatory frameworks below are the existing ruling
principles of the Ministry of Finance Development:

1. The 2001 Constitution of the Republic of Somaliland.

2. The Act of Delineation of Trade Bill – Law No. 26/2004.
3. Foreign Investment Law No 29/2008.
4. Somaliland National Budget Law No 44/2010.
5. Central Bank Law No 54/2012.
6. Islamic Bank Law No. 55/2012.
7. Law on the Delineation of the Organization of the Government and the
Independent Public Bodies – Law No. 71/2015.

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 8. Revenue Act – Law No. 72/2016.
9. Customs Act – Law No. 73/2016.
10. National Audit Act X/L 74 /2016.
11. Public Financial Management & Accountability Act: 75/2016.
12. Somaliland Auditor General Law No. 76/2016.vi.
13. The Code of Conduct Bill 01/2018.
14. Somaliland Company Law No. 80/2018.
15. The Public Procurement Law – Law No. 82/2018.
16. Registration Tax, Law No. 83/96.
17. Stamp Duty Act, Law No. 85/96.

1.2. Purpose and Objectives of the Strategic

Plan
The purpose and objectives of the Strategic Plan are to shape the roadmap of strategic
actions required to be undertaken by the ministry towards achieving a common goal. This
is to underpin the main objectives of the Somaliland National Vision 2030 and the NDPII.
Therefore, the Strategy Plan sets;

• The five-year strategic direction to fulfill the ministry’s mandate, vision and mission
while adhering to its core values.
• Prepare the annual fiscal policy together with the required regulations for its
implementation.
• Participate in the negotiation of international and regional trade and financial
agreements.
• Deliver a method for monitoring improvement towards the attainment of the set
objectives.

This strategic plan will embrace the following guiding principles.

• Sound, consistent and credible policy formation and implementation.

• Legal and regulatory reform for financial accountability and management to
advocate PFM laws.
• Accelerate the pace of sustainable development.
• Technological advancement to boost productivity.
• Promote sustainable development that upholds environmental protection while
maintaining resource utilization.
• Strong institutional building and human resource development to sustain growth

1.3. Link of the Strategic Plan to the NPDII

As stated by the Somaliland National Development Plan II, Somaliland has been
consolidating peace and development through locally tailored reconciliation within its
borders. Despite enduring several internal conflicts, Somaliland continued to unite as a
young nation. Through the period of 1997-2006 Somaliland moved from conflict to
humanitarian and recovery status, where international aid organizations directly
implemented programs and projects based upon primarily broad humanitarian and
recovery needs. After one decade of relative stability, the Government of Somaliland and
its international partners agreed to move Somaliland from a humanitarian and recovery
status towards reconstruction and development. This culminated into a joint Government,
World Bank and United Nations “Joint Needs Assessment” (JNA) in 2006—Somaliland’s

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first needs assessment focusing purely on future development.

In January 2007, a consultative workshop was held in Hargeisa to bring together the
executive and the legislative branches of the government, as well as non-state actors to
discuss and draw recommendations from the JNA findings. Based on these findings and
recommendations, the Somaliland Reconstruction and Development Program (RDP), 2007-
2011, was produced. The RDP was designed to further the achievements of restoring law
and order, re-establishing public institutions for good governance and social services
delivery, and reviving the private sector. It built on the unique experiences of Somaliland
in reconciliation, peacebuilding, recovery, reconstruction, and renewed development.
According to Somaliland’s RDP document, future development efforts would focus on the
following pillars.

1. Investing in people through improved social services (especially education,

health, water and sanitation) to save lives and to raise human skills, and actions to
address the needs of specific vulnerable groups such as women, children and the
disabled.

2. Establishing an enabling environment for a sustained poverty reduction

3. Growth by expanding opportunities for employment and improving food security

through better infrastructure, policies and actions to overcome constraints facing
productive sectors, and ensuring the protection of the environment and sustainable
use of natural resources.

4. Deepening peace, improving security, and establishing good governance through

the strengthening of core public and private sector institutions and conflict
preventing and resolving mechanisms.

According to the Somaliland National Vision 2030, Somaliland should be a nation whose
citizens enjoy sustained economic growth and reduced poverty levels. The Somaliland
National Vision 2030 identifies six priority areas of its economic agenda:

• Agriculture, livestock and fisheries

• Trade and financial services
• Tourism – Manufacturing
• Mining and extractives
• Private sector and investment
• Diaspora

These areas are critical for unlocking the potential economic growth of the country. As for
the first cycle of development in Somaliland, the NDP focused on creating a better
environment for businesses. During the NDP (2012-2016) cycle, the Government of
Somaliland produced in partnership with other organizations, several studies focused on
the private sector, SMEs, informal economy, among others. These studies helped
government institutions better understand how to improve conditions for businesses to
strive. Based on these studies the government targeted critical areas of legal reforms as
well as other more interventionist activities. Although the sector has been relatively
successful in pushing forward some fundamental regulatory reforms, its efforts in
promoting industrialization in the country were very timid. Most of the interventions
proposed in the NDP related to industrialization (i.e., policies, industrial zones and
incubators) were never fully supported. However, such performance also raises questions
about whether a strong industrial policy is something that the country should envisage, or
a somewhat more service-based economy would be a better fit for Somaliland.

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The Central Bank of the Republic of Somaliland together with the Ministry of Finance
Development are still learning how to effectively use their monetary and fiscal instruments
to promote macroeconomic stability—an essential characteristic of a healthy economy.
The main objective of the plan is to deliver a useful framework that brings about positive
economic transformation, helps create jobs and improves the wellbeing of the Somaliland
people. The ministry will address the economic development pillar of the Somaliland
National Vision 2030, which is to ‘’pursue macroeconomic policies that promote
accelerated growth, job creation and poverty reduction’’. The Strategic Plan will also help
accelerate the realization of the Second National Development (NDPII) and all other
Presidential directives in line with economic growth and social wellbeing. The critical role
of the MoFD in the implementation of the National Development Plan include the:

• Formulation and implementation of Sound Macroeconomic Policy for Economic

Stability and Growth.
• Domestic financing and revenue mobilization, including tax and non-tax revenue
to increase the low base of GDP growth over the medium-term.
• External finance mobilization to service the public debt, public-private-
partnership, and future concessional and non-concessional loans to support
Somaliland economic development sector.
• Public Investment Management as a catalyst for economic growth.
• Enhancing the implementation model of the Ministry of Finance Development.

Chapter 2: Situational Analysis

This chapter highlights the current internal strengths and weaknesses as well as the
external opportunities and challenges facing the Ministry of Finance Development. Some
trained and professional internal and external members of the MoFD carried out an
assessment of SWOC analysis (Strengths, Weaknesses, Opportunities and Challenges)
and PESTEL analysis (Political, Economic, Social, Technological, Environmental and
Legal). The undertaken environmental scan allowed the identification of the issues that will
either accelerate or obstruct the process of implementing this strategic plan. While at the
same time, focuses on subjects that impact and influence on the acknowledged key result
areas, or themes of the ministry.

2.1. SWOT Analysis

The undertaken SWOC Analysis during the formulation of the Strategic Plan delivered an
insight into the existing internal strengths and weaknesses as well as the current external
opportunities and challenges of the ministry. As a result of this, the plan puts forward ways
to mitigate the internal weaknesses and external challenges for the benefit of economic
development. On the other hand, the SWOC analysis highlights the factors that influence
the duties and functions of the ministry to realize its strategies and objectives from internal
and external perspectives. The center of interest of the analysis is on the technical
capacity, management, communication, financial and human resources and the pertinent
factors of the ministry. The SWOC analysis is discussed below:
Strengths Weaknesses
1 Strong support for reforms and improving 1 Lack of capacity building.
financial management systems.
2 Positive trends in tax collection. 2 Unskilled staff.
3 Debt information management. 3 Poor technology and ICT scarcity.

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 4 Strong Tax Policy. 4 Poor transportation.
5 Public Procurement oversight 5 Insufficient space.
6 Policy and Legal framework availability. 6 Lack of information sharing.
7 International technical expertise. 7 Lack of cooperation.
8 Financing annual national budget. 8 Tax tribunal.
9 Reform arising from PFM Act. 9 Lack of awareness.
10 Tax Laws Reform 10 Poor implementation.
11 Financial Management Reporting. 11 Low salary.
12 Lack of good leadership

Opportunities Challenges
Government’s commitment to economic 1 Higher Unemployment.
1 growth and poverty reduction.
2 Discovery of natural resource. 2 Lack of International Comm.
recognition.
3 Regional trade and economic cooperation. 3 Least foreign aid.
4 Structural reform and good implementation 4 Low domestic revenue.
strategy.
5 Fiscal Policy Formulation. 5 Low export.
6 Increase of production. 6 Strong foreign currency.
7 Political stability of the region. 7 Depreciation of local currency.
8 Training and capacity building. 9 Climate change.
9 Poor remuneration
10 Lack of public awareness.

The SWOT analysis was conducted to determine the Ministry’s strengths, weaknesses,
opportunities and threats, based on a participatory approach. The strategic planning work
continued with the identification of the mission, vision and policy priorities of the Ministry.
In this direction, information was first obtained from the units regarding the activities
carried out within the preceding Plan period aimed at meeting the strategic objectives and
targets. In light of the information collected, draft versions of the main components of the
Plan were developed and shared with the units for feedback. Within this process, meetings
with broad-based working groups were held in accordance with the work schedule, a draft
document was drawn up and the progress was assessed.

2.2. PESTEL Analysis

During the formulation of the Strategic Plan, a broad Political, Economic, Social,
Technological, Environmental and Legal (PESTEL) analysis was undertaken. This PESTEL
Analysis allowed the ministry to candidly portray and depict the environment in which it
operates, and therefore be able to understand the dynamics that will either upkeep or
hinder the implementing process of the strategic plan. The table below shows the PESTEL
Analysis.

PESTEL ANALYSIS
POLITICAL FACTORS IMPLICATIONS
Relative Peace and Stability Positive local investment and optimum revenue
collection.
ECONOMIC FACTORS IMPLICATIONS
Regional Integration Poverty rates reduction, lower food prices and real
income rises.
Global and Regional Economic Growth Positive or negative fiscal outcomes (depends)

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SOCIAL FACTORS IMPLICATIONS
Negative perception of government Decline of domestic revenue mobilization
expenditure
TECHNOLOGICAL FACTORS IMPLICATIONS
Poor information System Lack of Integration of public ICT Systems.
ENVIRONMENTAL FACTORS IMPLICATIONS
Natural Disasters, Climate Change, Droughts, Decrease of tax collection and negative impact to
Famine, Flooding, Covid 19 Pandemic. the wellbeing of the economy
LEGAL FACTORS IMPLICATIONS
Legal procedures and PFM Legal Frameworks Enforcement constraints and lack of implementation
strategy

2.3. Lessons Learnt

The process of documenting lessons learnt helped the ministry’s performance team
discover both internal strengths and weaknesses as well as external opportunities and
challenges. It provided an opportunity for team members and/or partners to discuss
successes during decision-making, policy development, administrative project plan,
unintended outcomes, and recommendations for others involved in similar future projects.
It also allowed the ministry at high-level statements to discuss things that might have been
done differently, the root causes of problems that occurred, and ways to avoid those
problems in later implementation stages. Use of lessons learnt is a principal component of
an organizational culture committed to continuous improvement and adaptive
management. Lessons learnt mechanisms communicate acquired knowledge more
effectively and ensure that beneficial information is factored into planning, work
processes, and activities.

Therefore, the forthcoming lessons, which the ministry will learn from the implementation
of its mandate in the coming five years, will improve the implementation of the next
Strategic Plans and policies:

• Effective implementation of the ministry’s mandate requires a commitment to management

at all levels.
• Empowered financial and human resources enable better achievements, and it is critical for
the successful implementation of the ministry’s mandate.
• Use of technology improves efficiency and effectiveness in service delivery.
• Compliance to PFM reforms increases accountability and management of public resources.
• Availability of data is crucial for monitoring progress in the implementation of the plan.
• To achieve set targets in this strategic plan, there is a need for regular monitoring and
evaluation, preferably at pre-set intervals.

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Chapter 3: Strategic Direction, Goals and
Objectives
3.1. Strategic Directions
A strategic direction is one of the most important forces that the ministry requires to
implement. The strategic direction will establish the structure for internal responsibilities
that each department of the Ministry of Finance Development and its staff takes on. A clear
vision allows each department to know the ministry’s purpose and objectives. Through
comprehensive examination and analysis of: the ministry’s mandate, vision, mission, the
environmental scan, PESTEL analysis and the country’s National Vision and Development
Agenda, the MoFD has identified five essential outcomes:

1. The prospective yearly GDP growth of 4% to 6% per annum which is currently

around 2%.
2. Raise the tax-to-GDP ratio from 8% to the 15% recommended by the IMF.
3. Poverty reduction to 10%
4. Maintaining the inflation rate at 4% in the coming five years. Also maintain sufficient
foreign exchange reserves.
5. Global competitiveness ranking to 184 out of 192 countries.
To attain the above institutional key outcomes, the ministry will focus its efforts towards
eight strategic core areas to be implemented over the plan period. These include;

- Economic development and macroeconomic stability.

- Improvement of Public financial management system.
- Effective management and resource mobilization.
- Strategic development and national planning.
- Regional integration and trade cooperation development.
- International investment and private sector development.
- Financial sector development.
- Strengthen institutional capacity.

A number of goals have also been identified for each of the strategic areas above. For each
goal, a set of SMART objectives has been proposed along with their strategies. This is to
prioritize, strengthen operations, focus energy and resources to ensure that employees
and other stakeholders are working toward common goals.

3.2. Strategic Goals and Objectives

First Strategic Direction: Economic Development and
Macroeconomic Stability.

Strategic Goal: Avoiding Economic and Financial Crisis.

Broad Objective: Low Inflation and Fiscal Stability.

- To sustain low inflation, the Ministry of Finance Development should use proper
methods to control inflation, whilst at the same time creating employment and
poverty reduction to lift people out of poverty.

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 Specific Objectives:
- Supply-side policies and increasing long-term market competitiveness.
- Advised BOSL on monetary policy that controls the money supply.
- Advise on exchange Rate Policy that refers to the Ministry of Finance
Development incorporation with the Central Bank to manage local currency
with respect to foreign currencies. In formulating exchange rate policy, a
balance should be found between local and foreign currencies.
- Design and implement tight Fiscal Policy, which is to balance needs for
generating government revenue and levels of government spend in order to
support a stable inflation rate and manage the fiscal deficit.

Second Strategic Direction: Improvement of Public

Financial Management System.

Strategic Goal: Ensure efficient, effective and accountable use of public resources as
a basis for economic development and poverty eradication through improved
service delivery.

Broad Objective:
- The principal objective is to have in place a country-led PFM reform system that
supports improved service delivery.

Specific Objectives:
- To provide a broad strategic framework, establish priorities and sequencing of
tasks and provide an actionable plan for short, medium and long-term phases.
- The Ministry of Finance Development and other stakeholders to actively
participate and be fully empowered to shape the strategy with concrete actions
to transform the Somaliland PFM Reform architecture.

Third Strategic Direction: Effective Expenditure Management and Resource Mobilization

Strategic Goal: Improving Budget Credibility and Revenue Increase Efforts

Broad Objective: To enhance the ability of the government, the Ministry of Finance
Development should meet its expenditure and revenue targets.

Specific Objectives:
- The government should uphold its budgeting commitment.
- Implement the budget as planned to avoid shifts in spending priorities.
- To prevent the government deficit from being unsustainable.
- To avoid erosion of public trust.

Fourth Strategic Direction: Strategic Development and National

Planning

Strategic Goal: empowering the relationships between planning, policy formulation

and budgeting at all levels.

Broad Objective: Strengthening the link between policy formation and

implementation, national planning and budgeting.

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 Specific Objectives:
- Review, evaluate, analyze and initiate formulation of policies of cross-cutting
budgetary issues.
- Allocate resources in line with national development priorities.
- Coordinate the analysis, monitoring and evaluation of budget performance.
- Analyze and advise on annual budget policy options.

Fifth Strategic Direction: Regional integration and trade cooperation development

Strategic Goal: Harmonize regional economic policies, regulations and procedures in

the preferential trading areas

Broad Objective:
- Economic coordination with external partners.
- Establishment of free duty zones.

Sixth Strategic Direction: International Investment and

Private Sector Development

Strategic Goal: Introducing business and investment attraction

Broad Objective: Encouraging expansion of the existing local businesses as

well as attracting foreign investors.

Specific Objectives:
- Expansion of the local capability and skills.
- Increase export opportunities.
- Increase investment opportunities.
- To obtain stronger and resilient national economy.

Seventh Strategic Direction: Financial Sector Development

Strategic Goal: Financial sector that supports the overall economic growth and
social development

Broad Objective: Establish financial policies, improve regulation and

supervision of the financial sector

Specific Objectives:
- Approval of Somaliland Banking Law.
- Develop policies and frameworks to enforce compliance with international
standards.

Eight Strategic Direction: Strengthen Institutional Capacity

Strategic Goal: Effective and efficient ministry that achieves required results

Broad Objective: Develop human resource policies, conduct training and

capacity building to develop training and skills plan for the ministry.

Specific Objectives:

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 - Formal rules and procedures that dictate how certain matters should be
addressed in the workplace.
- Employee rights and duties, including an increase of remuneration.
- Building the ability of the ministry staff and its units to perform functions
effectively, efficiently and sustainably.
- Improving the working environment by building new offices.

Chapter 4: Matrix of the Strategic Plan

This chapter considers the identified strategic matters that the ministry needs to adopt so
as to commendably accomplish its mission, while delivering the headship necessary to
make the strategy implementation happen sooner. This is the realization of the Second
National Development Plan and the Somaliland National Vision 2030 aspirations. The
strategic objectives and initiatives to be pursued in addressing the issues are also
presented. A matrix for the strategic plan was developed to make sure that there is a clear
direction and successful implementation of the strategies identified. To enhance economic
growth and sustainability, the following strategic objectives have been prioritized for the
period of the Strategic Plan, 2019 – 2023.

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Strategic Plan Matrix

NDPII Strategies Objectives Indicators Time-Frame in Years Responsibility

Y1 Y2 Y3 Y4 Y5
NDPII Economic To sustain low inflation, Measuring and evaluating the effectiveness of the existing 10% 50% 80% 100% X Office of the Minister
Economic development the MoFD should use policies and consequently adopting the current policies or
Pillar good methods to control designing new ones.
& inflation.
macroeconomic
stability
Measuring the leadership and managerial X 50% 80% 100% X DG Office
guidance to staff.
Current policies include: X 30% 60% 100% X macroeconomic and
• Revenue Policy Statistics Dept.
• Electronically stored Information Policy
• Records Management Governance Policy
• Records Retention and Destruction Policy
• Cash Management Policy
Improvement The principal objectives is Measuring the established country-led PFM reform 20% 50% 80% 90% 100% Office of the Minister
PFM System to have in place Acs.
a holistic,
country-led PFM strategy
Measuring the new Reform Acts of Revenue, 10% 20% 50% 80% 100% Customs, Inland
Expenditure, Auditing, Procurement and Customs Acts to Revenue, Internal
strengthen Public Financial Management System of Audit Services,
Somaliland. It also includes other laws, regulations and Accountant General
amended Acts. Office & legal Services
Dpts.
Effective In order to enhance the Measuring, monitoring and evaluating existing 20% 40% 70% 80% 100% Customs, IR, AGO,
Management & ability of the government, laws and regulations, including Public Financial Law, FDI Law Legal Service & Admin
Resource the Ministry of Finance and Customs Law. Service & Finance Dpts.
mobilization Development should meet its
expenditure and revenue
targets.
Effective To develop a tax system To avoid enforcing unannounced tax regulations without 10% 50% 80% 90% 100% PFM
Tax Reform through predictable obtaining stakeholder feedback over the short and medium
revenue policies that are term, to allow a reasonable time for transition to new tax

18
 sensitive to global regulations.
developments, increasing
the competitiveness of the
national economy and
ensuring fairness in the
distribution of the tax
burden.
Effective approach To strengthen and monitor To develop a guide for strengthening X 20% 50% 80% 100% Inland Revenue
to manage resource fiscal management and internal the pre-fiscal control practices of
mobilization and control systems in public Public Administrations.
distribution administrations.
To ensure that To fully Implement the To conduct training to enhance the skills and ability of 10% 50% 80% 100% X IAGO
the accounting Integrated the Accountant General Office to produce a sound
services a Financi Financial Statements. And to increase the level of
re managed more al Management compliance with accounting regulations with the
effectively Informa Government Accounting Standards
tion Systems
To implement the To increase the level of To increase the level of compliance with accounting 10% 50% 80% 100% X IFMIS
Integrated Public integration of the banking regulations with the Government Accounting
Financial system regarding payment and Standards
Management collection transactions
Information performed by accounting units
System
To fight against To carry out an effective combat To increase legal, administrative and technical 10% 50% 80% 100% X Legal Depts
the corruption based on laundering of proceeds capacity and competences in fighting against the
of crime, preventing the financing of terrorism and laundering of proceeds of
financing of terrorism, and crime
providing an economic security
To increase To increase and improve the To establish and ensure the use of common rules 10% 50% 80% 90% 100% HRM
institutional quality and quantity of and services defining the roles and functions of the
capacity personnel of the Ministry in central and provincial organizations of the Ministry
accordance with the HRM
perspective.

19
Chapter 5: Monitoring and Evaluation
5.1. Risk Analysis

In order to identify where the Ministry of Finance Development and its Departments might
be vulnerable, a risk analysis and mitigation strategy is outlined below. This will enable
the Ministry to understand the possible risks ahead in order to identify mitigation
measures to reduce the severity and seriousness of the assessed risks.

Potential Risks Operational Risks Financial Risks Technological Risks Mitigation Strategy
Lacking High possibility of Incompetence to Ministry of Finance To mitigate the effects of the
commitment of the proposed increase revenue Development may not above risks on this plan, The
the activities may to finance keep pace with rapid Department of Planning and
Departments to confront planned ICT developments. Statistics implements the
ensure administrative operations. following measures:
implementation obstacles. i. Enhancing M&E for early
of the Strategic detection of all potential
Plan. risks;
ii. Carrying out suitable
discussion with
stakeholders;
iii. Enhancing MoFD
management capacities;
iv. Fostering optimal
utilization of available
resources;
Failure to The reality of A national Staff may find it
implement the inadequately skilled economic crisis difficult to adapt to
Strategic Plan staff in key may disturb the new technological
due to inability departments is implementation changes.
of likely to affect of the planned
Management. delivery of services activities.
in Technical and IT
function.
Shortage of space, Inadequacy of the
office tools and current software to
equipment. match the required
operations.
Inadequate
budgeting and lack
of implementation
may make difficult
to implement the
planned activities.

Inappropriate
attitude and culture
in the governance
and operations.

5.2. Monitoring and Evaluation

The Strategic Plan monitoring and evaluation model refers to the process in which the
realization status of the performance indicators is determined within the scope of the
performance programs which are the annual application stages of the plan, the results are
analyzed at the end of each year, the necessary measures are taken and all of these stages
are reported.

20
The Ministry of Finance Development will make monitoring and evaluation an integral part
through the process of the execution of the strategic plan. The aim and purpose of
measuring and assessing Strategic Plan performance are to illustrate lessons from the
implementation experience. The results of the monitoring and evaluation framework will
notify the decision-making processes. The system will mostly use the strategic objectives
and indicators that have been incorporated into the strategic plan detailed implementation
matrix. It is therefore important to measure the performance result against the strategic
plan throughout the monitoring period meetings to take actions and to come up with
corrective solutions to potential deviations.

To control the process will enable us to monitor and evaluate reports on the for the
fulfilment of strategic objectives and targets, the results of the measurement of
performance indicators against the target, the sources of data, the reasons for any
deviations from the target, the actions planned to be taken to address such deviations and
the problems encountered in performance management will be assessed at the period
meeting.

Each Department of the ministry will conduct series input and output analysis. The
departments will also organize and perform first assessments, which will include cost
analysis as well as the monitoring, which is the first part of the process, will be based on
the following guidelines:

• All Departments will monitor all accomplishments and activities based on their
jurisdiction and responsibility.

• Directors will be in charge of their department's monitoring and evaluation processes

falling under their responsibility. This will include accounting for activities, inputs and
outputs.

• Directors of each Departments will be responsible for preparing Annual Work Plans
(AWPs) for each year of implementation, and all individuals prepare Individual
Operational Plans (IOPs). This is based on the Departmental implementation plans.

• Departments and their directorates will monitor areas of performance, ways of

utilization of resources, and institutional capacity. The monitoring process will involve
regular progress of the strategic plan implementation.

21
Evaluation will be done to examine and investigate the medium and long-term effects of
trends in specific objectives of the Strategic Plan. The evaluation activities will timely be
arranged in three different terms: -

1. Mid-term Evaluation: This is to examine the implementation progress of all departments.

The mid-term evaluation will ensure all strategic goals and objectives are to be achieved
within the planned time set by the Strategic Plan.

2. End Term Evaluation: at the end of the Strategic Plan, a final evaluation will be conducted
by the ministry to measure achievements and re-design the next Strategic Plan.

3. Ad-hoc Evaluation: In order to inform the implementation strategy and whether goals and
objectives are to be achieved the ministry will conduct an ad hoc evaluation based on
need.
Therefore, it is important to monitor through the identified performance indicators
progress against the planned outputs.

Chapter 6: Departmental Plans

6.1. Public Financial Management (PFM)

Mission
The PFM Department coordinates and harmonies the public financial management reforms to
strengthen public finance management systems in order to enhance effectiveness, efficiency and
improve transparency and accountability in the use and management of public funds.

Objectives
The broad objective of the PFM is to achieve overall fiscal discipline, allocation of resources to priority
needs, and efficient and effective delivery of public services. A solid and strong PFM system is a tool
to minimize fiscal waste and support the effective and efficient use of taxpayers’ money. Without
proper management of public funds, the macro economy will be negatively affected. Weak PFM
means that scarce resources are wasted through poor allocations and inefficient management.
Corruption also thrives where PFM is weak and limits possibilities for growth.

22
 PUBLIC FINANCIAL MANAGEMENT (PFM) DEPARTMENT
Goal Objective Strategy Performance indicator Time-Frame in Year Responsible

2019 2020 202 2022 2023

1
Goal 1: To develop Objective 1: Assist MoFD to Maintain Comprehensiveness of 30% 60% 100% PFMDRM &
Transparency, To develop a macroeconomic advanced key models & information included in the Macro and
Accountability and framework linking the growth database system to budget documentation. statistics
Compliance of Public of national income, savings, analyst assumption of Produce information data that Dep.
Financial investment, and balance of economic parameters. estimates tax and nontax
Management. payment to public revenues, domestic & external
expenditure & revenues. borrowings, etc.
Objective 2: To prepare -Assist budget Aggregate revenue outturn 30% 70% 100% PFMDRM &
comprehensive budget department and compared original approved Budget and
indicating parliamentary economic budget; planning
Economic prospects, broad committee how to Aggregate expenditure outturn Dep.
policy objectives, and Prepare reliable budget; compared to original approved
sectoral allocation /ceilings -Develop budget budget.
consistent with preparation module Civil society budget
macroeconomic framework. applicable all the feature participation;
(Cross cutting). crucial to budget Multi-year in fiscal expenditure
preparation process. and budgeting.

Objective 3: Set of processes cover -Budget classification report 30% 60% 100% PFMDRM &
To develop execution the functions associated Public access to key fiscal Budget and
process, accounting and implementing the Information with timely planning and
reporting system. budget, including manner. Accountant
procurement in -Quality and timelines of annual General
accordance with the financial statements; office.
budget estimates, Quality and timelines in-year
recording and budget reports.
accounting of all -Efficient and effective use of
government public resources
transactions;
-developing periodic
reports to monitor the
overall use

23
 appropriations, over the
course of the year;
- set information systems
for budget execution,
accounting & fiscal
reporting.
Objective 4 : Assist the MoFD to -Set up cash management 10% 40% 70% 100%
To develop cash management implement cash section in the accounting PFMDRM
system assists the management policy general office; and
Government in maintaining developed by PWC. -Monthly forecast Accountant
an up-to-date picture of the development; General.
Government’s liquidity -Compared data actual verses
position and cash original budget.
requirement.
Objective 5: -Assist the MoFD to -Taxpayer registration with tax 10% 30% 60% 80% 100% PFMDRM
To improve revenue develop and implement identification number; and inland
administration system. of tax and tariffs polies; -Merging IRD and customs in to Revenue
- develop the process of one agency; Dep.
collection tax and nontax -Aggregate revenue collected
revenues; compared verses budget.
- develop several -Revenue collection Modules
modules uses to revenue -Mobile collection.
management system.
Objective 6: to revise and Help internal audit -Effective and efficiency 10% 30% 50% 70% 85% Cross cutting
develop country PFM act to department, external internal control system
support auditing audit, and public -Scope, nature and follow up of
effectiveness and efficiencies. accounts committees in external audit;
(cross cutting) their functions. -Legislative scrutiny of external
audit report;
-Legislative scrutiny of national
budget report.

24
 6.2. Accountant General Office

Objective
Subject to the PFM Law, the mandate of the Office of the Accountant General is as outlined
below;
1. The Office is mainly responsible for: -
- Compilation and management of the accounts of the Government,
- Custody and safety of public money,
- Resources of the Government, and
2. The Office will give general instructions to all accounting officers which are
consistent with the PFM Law, or any regulations or instructions issued under it.
3. Specify for every government ministry, department, fund, agency or other
reporting unit required to produce accounts under the PFM Law:
- The basis of the accounting to be adopted after obtaining advice from the
Accounting Standards Board.
- The classification system to be used.
4. Ensure that an appropriate system of account is established in each
government ministry, department, fund, agency, or reporting unit which is
compatible with the requirements of the PFM Law and which ensures that all
money received and paid by the Government is brought promptly and
properly to account.
5. Ensure that the system of internal control in every government ministry,
department, fund, agency or other reporting unit required to produce
accounts is appropriate to the needs of the organizations concerned and
conforms to internationally recognized standards;
6. Refuse payment of any voucher which is wrong or deficient in content, or that
contravenes the provisions of Constitution or any regulations, directives or
instructions properly made under this or any other law for the management of
public money, or that is in any way unacceptable in support of a charge on
public funds.
7. Ensure, so far as practicable, that adequate provisions exist for the safe
custody of public money, property, securities and accountable documents;
and
8. Take precautions, by the maintenance of efficient checks, including surprise
inspections, against the occurrence of fraud, embezzlement or
mismanagement.
9. The Accountant General shall inspect all offices of the government and shall
be given;
- Access at all times to those offices; and
- All available information he/she may require or consider necessary for
the purpose of enforcing compliance of article 20
10. Coordinate & manage the regional accountants & sub accountants as may be
required.
11. Oversees, supervises and monitors the daily, weekly, monthly and yearly
performance of all the sections of the office and the regional accountants.
12. Formulating policies and instructions for the preparation of government
accounts, controlling government expenditure and revenues.

25
SWOT ANALYSIS
Strength: Weaknesses:
A mix of young, qualified and experienced staff Limited funds for trainings and capacity building on recent
capable of adapting emerging tech and financial management and reporting issues.
reforms.
Proper transaction recording, accounting and Limited professional certified accountants
timely preparation of financial reports.
Smooth collaboration with other public Office space of the employee
entities.
Opportunities: Threats:
Willingness and political commitment of Limited office space (regional and headquarter)
reforms from the new government
PFM Reforms and technical assistance from Lack of clarity of the office’s independence
the World Bank
Some of the office staff have access to CIPFA Late or not receiving updates and information about new
trainings tariffs and other instructions from the MoF
New laws and regulations Too much dependence on IT and SLFMIS teams outside
the office
SLFMIS (when fully operational) Inappropriate appointments of Admin and Finance
directors and accountants of MDAs
Limited operational resources.
Poor budget estimates and lack of cash forecasting (release of
warrants without fund availability)
Mismatch of new laws and regulations
Dependent on manual system as SLFMIS is not yet fully
operational in fulfilling all requirements
Poor internal control system most of MDAs

26
ACCOUNTANT GENERAL OFFICE
Strategic Goal Strategic Objective Strategy Performance Indicator (%)
Strategic Goal Objective Strategy Output Indicators Time-Frame in Years Responsibl
2019 2020 2021 2022 2023 e
Goal 1: to Objective 1: Preparation of IPSAS The Roadmap is completed and 100% AGO
enhance To improve the application of Implementation validated
accounting and international standards and Roadmap
financial modernize preparation of
reporting financial reports Implementation of IPSAS Implementation of IPSAS Cash 20% 100% AGO
Roadmap Basis part 1
Implementation of IPSAS Implementation of IPSAS Cash 30% 50% 70% 100% AGO
Roadmap Basis part 2
Implementation of IPSAS Capacity building and trainings 10% 50% 80% 90% 100% AGO
Roadmap
SL-FMIS Implementation Automation of wider government 10% 50% 70% 90% 100% AGO
financial transactions and
reporting through SLFMIS
Goal 2: To Objective 1: Preparation of The manual is drafted a 20% AGO
strengthen To simplify payment expenditure guiding
financial processing manual and payment
controls checklist
The guiding manual is completed 100% AGO
and validated
Implementation of the guiding 60% 80% 100% AGO
manual (checklist)
Approval of COAPM and Implementation of COAPM and 50% 60% 90% 100 AGO
Financial Regulation Financial Regulation %
Goal 3: to Objective 1: Preparation of Fixed Finalization of Fixed Asset 80% 100% AGO
enhance fixed To improve the management Asset Management Management Policy and
asset of government Fixed asset Policy translation
management Mgt
Pilot asset registration 100% AGO
Wider public asset registration 50% 70% 100% AGO

27
Goal 4: to unify Objective 1: Consolidate government finalizing the TSA concept note and 80% 100% AGO
structure of To implement the treasury cash resources Drafting Terms of Reference(TOR)
government single account (TSA) and cash for TSA TA
bank accounts management
and optimize Hiring the TSA-TA and preparatory 20% 60% 80% 100% AGO
utilization of activities
cash resources Establishment of Cash Mgt Unit 100%
Validation and Finalization of Cash 100%
Management Policy
Goal 5: Objective 5: To ensure that Preparation of Debt Draft, Validation and Finalization of 50% 80% 100%
Managing the the government meets its Management Policy Debt Management Policy
need to borrow financing needs and
at lowest repayments at the lowest
possible time possible time
Preparation of debt data and 30% 60% 100%
reports

28
 6.3. Private Sector And Financial Services Department
Objective
- Foster close partnership between the private sector and the public sector
- Facilitate the development of legal, regulatory and operational framework
conducive to the growth of the private sector and financial institutions
- Provide technical support for the development of the financial sector
- Promote investment in the financial sector
- Develop framework for public private partnership (PPP) initiatives
- Oversee the nationalization process of public entities

SWOT ANALYSIS

Strength: Weaknesses:
Strong Leadership and Commitment Lack of office equipment
Skilled Staff Poor internet
New Financial and Private Sector Acts are in Few Staff members
place
Opportunities: Threats:
Political and Leadership Commitment Poor resourceful Information with the private and
financial sector
New Financial Sector Bills are ready to pass Absence of very crucial finance acts
Positive economic growth and investment private sector policies and regulations are still on
the process and others missing
New Private Sector Bills are ready to pass

29
PRIVATE SECTOR & FINANCIAL SERVICES DEPARTMENT
Strategic Goal Objective Strategy Performance indicator Time-Frame in Years Responsible
2019 2020 2021 2022 2023

Goal 1: Provide technical Objective 1: Establish Database Measures Number of financial 30% 50% 65% 80% 100% Financial and Private
support to the development To strengthen the capacity of for financial service institutions in the country with Sector
of the financial sector. domestic financial institutions to institutions number of branches providing
expand access to banking, credit
insurance, Credit union, credit Working closely in relation to
agency, micro finance and their credit policies
financial services for all the
businesses and people
goal 2 to establish a strategy system for Arranging regular meetings to 25% 55% 65% 90% 100% Financial and Private
Develop Strategic plan for developing Financial Creating create Financial Sector Strategy, Sector
the Financial Sector in Institutions committees Organize a Yearly conference
collaboration with Central working together to and Exhibition of financial
Bank prepare Financial Institutions
Strategy
goal 3 To have a legal framework to Application and Reduction of the total value of 30% 50% 65% 80% 100% Financial and Private
preventing financial illicit manage money inflows and out Implementation of inward and outward of illicit Sector
flows flows Anti-money laundry financial flows
laws in the financial
institutions
goal 4 To Follow up the financial laws Developing The number of outstanding laws 40% 50% 65% 75% 100% Financial and Private
Facilitate the development that have not yet been procedures and to be approved by the Sector
of legal, regulatory and approved, including guidelines related Parliament
operational framework for commercial banking law. to the missing role
conducive growth of the Insurance Law. Trade Lenience of the financial
financial institutions and Law sectors
Business Private Sector
goal 5 To Prepare stakeholder Organizing Develop trust between the 15% 30% 60% 80% 100% Financial and Private
To foster close partnership engagement for the expansion quarterly round public and the private sector Sector
between the private sector of the existing local businesses, table meetings
and the public sector as well as attracting foreign between businesses
investors. and government
goal 6 To find PPP that contributes to Supporting PPP measuring the PPP's 15% 30% 50% 80% 100% Financial and Private
Strengthen and promote national development dialogues contribution to the country Sector
effective public-private development
partnerships (PPP)
Programs

30
 6.4. Macroeconomic Affairs & Statistics Department
Objective
- To collect primary and secondary macroeconomic data for policy formulation,
- To formulate sound economic and fiscal policies that mobilize internal and external
financial resources for public expenditure,
- To enhance national economic stability, by focusing on socio-economic
development as a tool of poverty reduction,
- To provide realistic revenue forecasts, since the budget being the most compelling
instrument of the government for carrying out its policies.

SWOT ANALYSIS

Strengths Weaknesses
Strong economic parameters data analysis. Limited staff capacity
Policy and Legal framework availability. Limited ICT infrastructure
Support from international technical expertise. Insufficient transportation.
Strong leadership and commitment. Insufficient office space.
Lack of information sharing.
Lack of data analysis capacity.
Lack of reliable data.

Opportunities Challenges
Regional trade and economic cooperation. Poor coordination and cooperation among MDAs.
Structural reform and good implementation Lack of reliable census data.
strategy in place.
Political stability of the region.

31
MACROECONOMIC AFFAIRS & STATISTICS DEPARTMENT
Strategic Goal Objective Strategy Output Indicator Time-Frame in Years Responsibilities

2019 2020 2021 2022 2023

Goal 1: To Produce Objective 1:To produce and . To collect related Production of monthly, 100 Macroeconomics
and Publish Economic share with the stakeholders primary and quarterly and yearly reports % affairs and
Statistics Reports; the macroeconomics and secondary data Statistics
Statistics reports like Department
Economic Performances,
Trade Statistics, Fiscal
Analysis and External Aids
Goal 2: To Put In Place Production of economic 10% 30% 50% 70% 100 Macroeconomics
Sound Macroeconomic Objective 2: To Develop To establish and performance reports % affairs and
Policies; Macroeconomic Policies and create macroeconomic including the great needed Statistics
Models Policies, models and measurement economic Department
databases indicators like GDP,
Unemployment rate,
inflation etc
Goal 3: To Establish To Conduct Semi- Stimulating and supervising 20% 40% 60% 80% 100 Macroeconomics
Platforms For An Objective 3: To improve annual and annual the economic projects and % affairs and
Exchanging Ideas And collaboration and networking economic analysis associations like Statistics
Information; of Economic associations conferences ✓ Berbera Corridor Department
Project (Trade and
Transit Agreement),
✓ Somaliland Economic
Association (SEA),
✓ Somaliland Public
Accountants
Association, etc.
Goal 4: To Prepare a To Collect, analyse The production of the yearly 100 Macroeconomics
Credible And Realistic Objective 4: To produce and interpret reliable budget outlook paper to % affairs and
Government Budget; Yearly Budget Outlook paper data to produce display the overall Statistics
budget outlook paper macroeconomic situation of Department
document. the country. , Budget
and
Planning

32
 The production of complete 100 - - - - Macroeconomics
To collect , analyse and referable % affairs and
Goal 5: To Prepare and interpret reliable Macroeconomic Statistics
Decision Making Help data to produce MTEF Fiscal Framework Department
Tools; document (MFF)document
Objective 5:To develop 10% 20% 50% 70% 100 Macroeconomics
Macroeconomic To collect , analyse The production of complete % affairs and
Fiscal Framework (MFF). and interpret reliable and referable Develop Statistics
data to produce MTEF Medium-Term Expenditure Department
document Framework (MTEF)
Goal 6: To Measure document.
the strategic Priories
To track and monitor The production of complete 100 - - - - Macroeconomics
of the Government
government revenue and referable semi-annual % affairs and
Expenditure; Objective 6:to Develop
and expenditure trend and yearly revenue and Statistics
Medium-Term Expenditure
expenditure analysis Department
Framework (MTEF)
reports.
Goal 7: To Conduct
To collect and analyse The production of at least 4 20% 40% 60% 80% 100 Macroeconomic
Fiscal Analysis;
primary and to 6 yearly fiscal researches % and Statistics
Objective 7: To analyse and
secondary data and and their reports. Department.
produce decision making
produce helpful
help reports of the planed
reports
revenue sources and
Goal 8: To Conduct To review and The conduction of at least 4 20% 40% 60% 80% 100 Macroeconomics
expenditure priorities
Required Fiscal evaluate the needed yearly staff trainings and % affairs and
Researches; staff trainings and one directors study tour. Statistics
Objective 8: To produce study tours Department
needed fiscal researches to
help decision makings.
Goal 9: To Improve
the knowledge and
the skills of the staff. Objective 9: To build staff
capacity.

33
 6.5. Internal Audit Department

Objectives
The role of the Internal Audit Department is to determine whether the respective
Government Ministries, Agencies or Departments’ risk management, control and
governance processes, as designed and operated by management, are adequate and
functioning in a manner to confirm that;

1. Risks are appropriately identified and managed;

2. Significant financial, managerial and operating information is accurate, reliable and
timely;
3. Employees’ actions are in line with policies, procedures and the applicable laws and
regulations of the Government of Somaliland (GOSL):
4. Resources are acquired economically, used efficiently, and protected adequately to
achieve the intended objectives;
5. Programs, plans and objectives are achieved;
6. Staff adhere to established ethics and values system; and
7. Quality and continuous improvement are fostered in the MDAs’ control processes.

Opportunities for improving management control and performance identified during

audits will be communicated to the appropriate level of management for prompt action.

SWOT ANALYSIS
Strengths Weaknesses

Availability of all financial rules and Lack of manuals and guidelines for the facilitation of
regulations. the duties and obligations of the department
Operationalization of the Public Financial Lack of proper analysis of the actual expenditure
Management Reform program transforms needed
departmental functions
Strong leadership and team spirit of the Lack of automated Asset Registration system
department’s staff
Centralized Ministry payment system Lack of Vehicles Control (Log Book)
Well managed and smooth running of the Insufficient budget allocation according to the
department’s responsibilities ministry’s huge responsibility.
Quick responses to inquires Lack of staff training and career development,

Opportunities Treats
Access to Departments and Re Currency depreciation (Effects by purchasing goods
gional Coordinators and Rent expenses)
Implementation of SLFMIS to standardize Lack of manuals and guidelines for simplification of
systems, procedures and reports the duties
Supportive TAs Loopholes in the laws and regulations.
Lack of adequate resources (offices and staff)
Lack of centralized procurement system

34
INTERNAL AUDIT DEPARTMENT

Strategic Goal Objective Strategy Performance indicator Time-Frame in Years Responsible

2019 2020 2021 2022 2023
Objective1: Improved service Endorsed GoSL Internal Audit 100% Director of
Goal 1: Enhance the Strengthened institutional delivery of the IAD Charter Department and
independence of the capacity of the IAD to the needs of Endorsed GoSL Audit PFM Coordinator
Internal Audit Enhanced Independence of the management in the Committee charter
IAD various MDAs
Directorate (IAD) Amended PFM Act
Enhanced and effective oversight
Implemented charters and PFM
of the Internal Audit Directorate
Act within GoSL
Goal 2: Build and Objective2: Number of staff enrolled for/ 30% 60% 90% 100% Director of
strengthen the Efficient and effective undertaking the Certified Department, and
professional capacity of implementation of the internal Conducting audits Internal Auditor (CIA) PFM Coordinator
the IAD audit conducted as per
certification
Improved staff technical internal audit
standards No. of quarterly technical
competences
Improved quality of audit And trainings conducted
deliverables % of staff attending quarterly
Improved accountability and Increased IT audit technical trainings
transparency of MDAs coverage Automation of the audit process
Increase the use of IT in the audit
process
Goal 3: Build the IAD’s Objective3: Changes No. of forums conducted by the 20% 40% 60% 100% Director of the
capacity to effectively Enhanced positive image of the successfully IAD per year Department
engage stakeholders IAD implemented No. of audit reports published
Improved stakeholder within the GoSL
No. of forums/meetings jointly
understanding of the work and Internal Audit
conducted/ attended
role of internal audit
Better working relationship with
stakeholders (like OAG and
others)

35
 6.6. Budget And Planning Department

Strategic Objectives And Priorities

The Budget and Planning department responsibilities include:
- Planning and controlling the overall objectives of MoFD
- Planning and preparing fiscal budgetary framework
- Preparing a consolidated national budget
- Develop a comprehensive and reliable budget
- Budget execution management

Strategic Goal: Improved efficiency in the preparation of the budget and

effectiveness in its execution.

Objective 1: To state overall objectives of MoFD

Objective 2: To develop standardized fiscal policy documents

Objective 3: To ensure that the system of accounting and classification is

appropriate and aligned with standard of chart of accounts:

Objective 4: To ensure efficient management and accountability of Government

Funds

Objective 5: To enhance financial information system to improve budget

preparation and budget execution

SWOT ANALYSIS
Strengths Weaknesses

Rolling out the SLFMIS budget preparation and Inadequate Monitoring and Evaluation of Budget
execution modules in place funded projects
Strong Leadership and Commitment Inadequate office space and IT equipment
Some professional skilled staff Poor internet connectivity
Better communication with other Depts. Lack of system transformation strategy
Control mechanism in place Employee resistance
Lack of budget manual to be followed

Opportunities Threats
Political and Leadership Commitment Lack of Information about the projects funded by
the external aid to the MDAs
Public Financial Management act Resistance to the implementation of PFMA Act
Positive economic growth and investment Poor Information Sharing with other Departments
TA recruited to develop the departmental policy Inadequate budgetary skills of some admin &
and procedures Finance Directorates in the MDAs.

36
BUDGET AND PLANNING DEPARTMENT
Responsibi
Strategy Goal Strategies Objective Indicator Time-Frame in Years
lities
2019 2020 2021 2022 2023
Budget calendar published 100%
Budget outlook paper published 90% 100%
MFF & MTBF Published 100%
100
Budget book standardised 70% 80% 90% %
Citizen budget book published 100%
1) To develop Budget policy update 10% 30% 60% 100% Budget &
standardized fiscal Planning
policy documents Capacity building
Equipment and furniture 100%
Training Progress 10% 30% 50% 70% 100%
Improved Objective 1: Describes fiscal policy documents produced or renewed each year. Two new
Goal 1: Economic efficiency in documents will be produced by 2021, such as: budget manual and templates. Performance
development and the indicator will be at least 2 tangible documents produced or renewed each year. Training will
resource preparation be measured by number of staff have been trained followed by certificates and training event
mobilization and its photo. Equipment and furniture will be feasible and quantifiable.
execution
Adoption GFS through application classification of government accounts (COFOG)
Administration classification 100%
100
Economic classification 50% 75%
%
100
2) To improve Functional classification 50% 75%
% Budget &
standard chart of
Budget segment update 10% 30% 50% 75% 100% Planning
accounts.
Objective: 2 describes budget classification and chart of accounts. There will be
improvement each year whether budget segment or revised chart of accounts. In 2020 will be
started budget classification, expanding to chart of accounts to local governments and public
enterprise will be included 2021 budget. Also, program, regional segments and modernized

37
 functional classification will be commenced 2021 budget. The performance indicator will be
measured by printed documents generated by the SLFMIS.
Budget reliability
I. Compared budget target versus
25% 70% 85% 100%
actual
Transparency of public finance
I. Available Public Budget reports to users 100
50% 75%
both revenue and expenditure %
Policy based fiscal strategy
II. Budget prepared with due regard to 100
3) To adapt public 25% 50% 75%
government fiscal policy priorities
expenditure and %
(sector allocation) Budget &
financial
Predictability and control budget execution Planning
accountability
I.
Economy Effective and efficient use of 100
25% 60%
public funds %
I. Adapt programed Based budget 25% 35% 50%
Objective: 3 PEFA assessment will be done by the TA, preparing training needs,
conducting training then implementing the PEFA tools guidelines. The indicators will be
described by TA within the inception report. The measurement depends how the TA
planned the adoption pillars of PEFA tools to follow.
100
4) To enhance I. Budget preparation module 10% 50% 75%
%
financial information
system to improve II. Budget execution module 20% 50% 100%
budget preparation
and budget III. Reporting 10% 50% 80% 90% 100% Budget &
execution Objective: 4 describes how to adopt SLFMIS Planning
and implementing financial information
system. There will be difference modules will
be used to improve financial information
system.

38
 Performance indicator will be from 2021 to
2023 for the improvement reports generated
by the system year after year. Also, how the
system will be in place the accurate budget
versus actual and provide reliable financial
statements
I. Coordinate work Plan MoFD 100%
II. Set suitable guidelines to be 100%
Followed by strategic plan
5. To plan the
overall objectives of III. Set performance 100%
MoFD indicators tools to the strategic plan
IV. Bench mark assessment technics 100%
IIV. Prepare five year strategic plan 100%

39
 6.7. Procurement Department
Objective
The mandate of the procurement Department is to develop, manage and issue guidelines
regarding the procurement of goods and services to ensure proper management and
implementation of procurement regulations and procedures. The procurement
Department discharges its mandate through the following functions:
1. Purchasing: the department is responsible for tendering and contract
management to facilitate goods and services for the ministry and also plays
and advisory rule to departments in all procurement related matters.
2. Stock control: the department is responsible for projecting demand and
consolidating user requirements for new tender.
3. Warehouse management: the department is responsible for warehousing of
goods for departments.
4. Office equipment: the department provides technical advice on the type and
model of office equipment required by ministry departments, it is also
responsible for the maintenance and repair of office equipment.

The procurement Department exists to efficiently and effectively provide goods to

stakeholders achieved through.
- Proper custody and safety of department of the ministry
- Transparency of tendering procedures and procurement
- Maintenance of proper supplies records and adherence to supplies regulations
and procedures.

SWOT ANALYSIS
Strengths Weaknesses
Quick respond to all applications Lack of staff training
Strong Delivery System Inadequate monitoring and evaluation of tasks
weekly staff meetings Lack of storage in which we would have stored the
types of equipment
Good staff communication The separation of procurement and logistics is a
barrier of segregation of duties.

Opportunities Threats
A good relationship with ministry of public Lack of finding the right tools and equipment
works and housing according to their quality
Well skilled workers who can fulfil the job having long-term contracts without review to the
duties contractors and it looks like monopoly contracts
lack of Professional consultants

40
PROCUREMENT DEPARTMENT
Strategic Goal Objective Strategy Performance Indicator Time-Frame in Years Responsible

2019 2020 2021 2022 2023

Goal 1: Improve Objective 1: achieve best • Engagement of list of different suppliers and Procurement
effectiveness To purchase quality value for money collect quotations Department
and efficiency of goods and services at • monitor goods and services price
procumbent reasonable prices fluctuations on regular basis
• Annual Cost reduction report from the 60% 70% 90% 100%
system
procuring of items/contract services
• receive requisitions from the departments
using the SLFMIS Procurement module

Objective 2: Just in time . Procurement

To meet departmental process orders • Reduced storage cost 60% 70% 90% 100 % Department
needs on time and to with the • Storing emergency supplies
prevent delays Suppliers at the
right time
Objective 3. Reduce costs • Constant Monitoring and evaluation (M Procurement
To reduce recurring and and wastage & E). 40% 90% 95% 100% Department
unnecessary demands while ensuring • Sharing or reallocating equipment such
from the departments the needs of as furniture to other departments.
MOFD
departments are
met.
Objective 4. deliver quality • qualitative bill of quantity with detailed 60% 80% 90% 100% Procurement
To ensure the quality of buildings for specifications and calculations Department
constructions and MoFD • Cooperate the Ministry of Public Work
maintain the buildings and Housing

Objective 5. Establish annual Staff equipped with profession and skills 20% 50% 75% 100%
Staff training staff training
plan
Objective 6. Consistency of • Standardised Manuals & Guidelines and
Establish Procedures procurement procedures 60% 80% 90% 100%
and Documentation operations
Objective 7.To apply Brings
SLFMIS procumbent efficiency and Instant and reliable reports 30% 70% 90% 100%
Module effectiveness
Systems

41
 6.8. Human Resource Department
Mission
To exhibit and express a high level of commitment in areas of recruitment, selection,
motivation, equal opportunity employment and training to attract and retain highly
qualified and competent employees.

Objectives
- Driving productivity
- Human resource development department strives to realize competence and drive
efficiency in the ministry’s work. Therefore, its chief objective remains
accomplishing institutional goals, by outlining clearly defined aims and achieving
them.
- Build Coordination between institutional Departments
- The Human Resources Development Department is responsible for the
coordination and harmonious functionality within and between different
departments, to ensure resources are organized to achieve objectives of the
ministry.

SWOT ANALYSIS
Strengths Weaknesses
• Well defined Staff grades • Lack of capacity to conduct trainings
• Staff promotion system • Limited capacity to supervise all MoFD sites
• Weekly staff meetings • Lack of Job Descriptions and Specifications for
all positions
• Maintaining attendance system • Lack of HR development policy
• Clear staff disciplinary procedures (Code of • Lack of HR computerized system (HRIS)
Conduct)
• Good staff communication • Lack of HR Adviser

Opportunities Threats
• Good working relations with the CSC • Shortage of Staff
• Strong Support From the Ministry’s senior • Lack of HR policy
management team.
• Good support from consultants • Inadequate budget

42
HUMAN RESOURCE DEPARTMENT
Strategy Goal Objective Strategies Performance Indicator Time-Frame in Years Responsibiliti
es
2019 2020 2021 2022 2023
Goal 1: Objective1: To conduct Organize, list Staff emails, phone Captured data base 10% 40% 100 HR
Enhance human staff data collection. numbers and other contact information system %
resources details. collecting all details
policies and required.
procedures.
Objective2: To .Establish Staff Reward policy Performance reward 20% 60% 80% 100% HR
establish performance and procedures. event.
appraisal system Appointed rewarded
employees.
Staff promotions
Objective3: Capacity Conduct training needs .Evaluate trained staff to 40% 60% 80% 100% HR
building to the staffs. assessment for all staff at MoFD; ensure effectiveness of the
Identify the staff will be trained; training program.
Implement the training. Improved employee
performance.
Skills improvement
attained.
Staff experience status.
And improved yearly
numbers.
Objective 4: To Implement harmonized Produce attendance 60% 80% 90% 100% HR
improve staff computerized finger print report generated by
Attendance machine system finger machine
Objective5: To develop Set up communication channel Departmental emails, land HR
employee internal such emails, land line telephone lines and WhatsApp 40% 60% 80% 90% 100%
communications and walk talk. groups.
Easy shared information
system exist.
Fiber internet exist.
Objective 6: To ensure Designing effective Set up automation payroll

43
Staff payroll system remuneration method. system 20% 70% 80% 90% 100% HR
Developed pay grade
system
Established internal
control procedure.
Objective 7: To Asset register track, barcode Recorded and physical of 30% 40% 70% 100% HR
safeguard and manage of each item of equipment. Equipment.
equipment Fixed asset management
report.
Audit verification.

Objective 8: To Implement code of conduct Appointed Discipline 30% 70% 80% 100% HR
improve accountability orientation. committee members
Practiced rules and
regulation.
Adopted System
Objective 9: To Close relationship with the Participated workshops 30% 70% 80% 100% HR
improve Collaboration CSC. during developed new
with CSC on staff Affairs guidelines by the CSC.
Negotiation with CSC
about staff recruitment,
promotion and rewards
Pension affairs
Objective 10: To Prepare yearly work plan Produce weekly, monthly 30% 70% 80% 90% 100% HR
prepare annual work and annual work plan
plan. report. 5% 10% 3%
3% 3%
Yearly-employee
recruitment plan.

44
 6.9. Administrative Services And Finance Department

Objectives
- Provide clear administrative support to all departments;
- Implement all financial regulations and policy guidance to support the goals and
objectives of the Ministry;
- Develop and manage the departmental budget;
- Promote efficient use of departmental resources;
- Assist the internal controls and provide all documents needed with consultation of
the Ministers and the Director General;
- Promote a culture of openness, trust, diversity, and equality within the Department;
- Improve communication and collaboration with customers and build a support
relationship;
- Provide employees with a work environment where teamwork is paramount, ideas
are rewarded, creativity and risk-taking are encouraged, and successes are
celebrated.
SWOT ANALYSIS
Strengths Weaknesses
Availability of all financial rules and regulations. Lack of manuals and guidelines for the
facilitation of the duties and obligations of
the
department
Operationalization of the Public Financial Lack of proper analysis of the actual
Management Reform program transforms expenditure needed
departmental functions
Strong leadership and team spirit of the Lack of automated Asset Registration system
department’s staff
Centralized Ministry payment system Lack of Vehicles Control (Log Book)
Well managed and smooth running of the Insufficient budget allocation according to
department’s responsibilities the ministry’s huge responsibility.
Quick responses to inquires Lack of staff training and career
development

Opportunities Threats
Access to Departments and Regional Currency depreciation (Effects by purchasing
Coordinators goods and Rent expenses)
Lack of manuals and guidelines for simplification
of the duties
Loopholes in the laws and regulations.
Implementation of SLFMIS to standardize
systems, procedures and reports Lack of adequate resources-offices and staff
Lack of centralized procurement system
Weak coordination among departments within
the ministry (lack of team spirit)

45
ADMINISTRATIVE SERVICES AND FINANCE DEPARTMENT

Strategic Objective Strategy Performance Indicator Time-Frame in Years Responsible

Goal
2019 2020 2021 2022 2023
Goal 1: Objective 1:To To implement Quarterly Expenditure plan preparation or cash 20% 40% 60% 80% 100% Accountant
advance improve Financial flow plan of MOFD.
Transparent financial regulations and
budget of MOF management COAPM
Goal 2: Objective 2:To To Automate ✓ Rolling out Payroll preparation Module 20% 40% 60% 80% 100% Accountant
minimization of implement FMIS Day to day ✓ Rolling out Budget preparation Module Head of
payments System tasks ✓ Rolling out Asset registration Module Logistics’
period ✓ Rolling out Purchase Module
✓ Rolling out Contract Management Module
✓ Rolling out Debt Management Module
✓ Financial reporting of FMIS system
✓ fleet system
Goal 3: Objective 3: To Needs Training ✓ Skilled and professional employee thorough 20% 80% 100% Director
Capacity get assessment of study tour
building of Staff experienced Employee ✓ Effective and efficiency performance
and creative
employee
Goal 4: Objective 4: To Allocate the ✓ Reduction of past and current national 20% 40% 60% 80% 100% Head of
identified and improve amount of debt debt in manner. Debts.
record the management of to be
amount of Public Debts. Disbursed
national debts each year.
Goal 5: Objective 5:To To apply best ✓ Improved brand structure of the 20% 40% 60% 80% 100% Director
Promote improve practices department.
efficient and structure and ✓ Customer care and satisfaction
communication Job description
of the of the
department department

46
 6.10. Integrated Financial Management & Information Systems
Mission
To ensure a fully integrated, secure and robust financial management information system
that facilitates policy-based budget formulation, execution and timely reporting across the
Government of Somaliland.” To create an environment in which the Government of
Somaliland can utilize IT systems in planning, budgeting, managing, accounting and
reporting of public finances within all Line Ministries, Donor Funded Projects (DFPs) and
Regions.”
Objectives
The objectives of the IT Systems Department are as follows:
- To implement a modern up-to-date and integrated financial system that facilitates
efficient transaction processing, reporting and oversight.
- To provide a platform for budgeting and strengthening accountability in the public
sector, and the integration of all PFM stakeholder information needs in treasury,
revenue, expenditure, debt, aid and asset management.
- To provide a foundation for the use of applications and technology for PFM across
government.
- To provide a framework for capacity building and knowledge management of the
IFMIS for core staff and end users across government.
- To provide a framework for continuous support and maintenance of applications
and technologies deployed for IFMIS usage.
- To ensure sustainability of the IFMIS on an on-going basis

SWOT ANALYSIS
Strengths Weaknesses
Strong support for reform and improve financial Lack integration of public ICT system
management system
International technical expert system Lack of specific budget line item to fun SFMIS
system
Implementation IFMIS throughout Somaliland Lack of information sharing
Best service delivery and lower transection cost Shortage ICT skilled employee

Opportunities Threats
Technological advance of the public institution Client resist to change system
Adaption of the latest technological tools Poor technology efficient and effectiveness
sustainability and reliability of IFMIS Inherent risk cyber security breaches
associated web based system

47
 INTEGRATED FINANCIAL MANAGEMENT & INFORMATION SYSTEMS
Strategies Objective Strategies Indicator Time-Frame in Years Responsibilities
Goal
2019 2020 2021 2022 2023
Goal 1: Objective1: Development of SLFMIS SLFMIS Modules Developed 30% 80% 100%
Modules
Integrated Development Implementation SLFMIS Fully Operational SLFMIS Modules in 100%
financial and Modules - Hargeisa District Hargeisa
manageme Implementation
nt of SLFMIS, ITAS Implementation SLFMIS Fully Operational SLFMIS Modules in the 100%
information and Customs Modules - Regions District Regions
system System Development of SLFMIS for SLFMIS Public Enterprises Developed and 50% 100%
Modules Public Enterprises and LGs Ready
Implementations of SLFMIS Fully Operational SLFMIS for Public 100%
for Public Enterprises and Enterprises and Local Government
LGs
Development of ITAS ITAS Modules are developed and ready 50% 100%
Modules
Implementation of ITAS ITAS Fully Operational for all IRD offices 100%
Modules for Entire IRD
Offices
Development of Customs Custom System Modules are developed 30% 80% 100%
System Modules and ready
Implementation of Customs Custom System Fully Operational for all 50% 100%
System Modules IRD offices
MOF Systems Integrations Fully linked all MOF systems 50% 100%
(SLFMIS, Banking System,
ITAS, Customs Systems)
Objective2: Conduct comprehensive Detailed specifications of ICT 75% 25% 100%
Improving the IFMIS ICT Infrastructure Infrastructure requirements & BoQ
ICT Needs Assessment
Infrastructure Train ICT staff in the new ICT Support staff capacitated to support 50% 100%
IFMIS technologies upgraded IFMIS ICT environment
Procure ICT Infrastructure for Fully commissioned IFMIS DR site 100
Disaster Recovery site %

48
 Build or upgrade Intranet for Capable of handling IFMIS traffic at both 50% 100%
all MDAs Central and LGs without Internet
Establishment of Disaster Prepared DR site 100%
Recovery site
Preparatory work for Data Prepared DR site 30% 70% 100%
Centre Upgrade
Replace Copper Cable with Fully commissioned IFMIS DR site 10% 50 100%
Fiber network in the Data
Centre
Develop Disaster Recovery & Policies to ensure rapid recovery and 100%
Business Continuity Plan continuity of the IFMIS in the event of
unforeseen or foreseeable disasters
Replace Copper Cable with More reliable and secure WAN 100%
Fiber network in the Data
Centre
Develop Disaster Recovery & Policies to ensure rapid recovery and 70% 100%
Business Continuity Plan continuity of the IFMIS in the event of
unforeseen or foreseeable disasters
Objective3: Task IFMIS vendor to Enhanced in-country IFMIS vendor support 50% 100%
Ensuring strengthen local support
Robust Support Renegotiate SLA with IFMIS Improved Application support response 40% 100
and vendor, incorporating clearly %
Maintenance defined KPIs
Framework Review and strengthen the Improved Infrastructure support response 50% 100%
KPIs of ICT Infrastructure
SLAs
Implement and monitor Ensuring systems availability 100%
quarterly preventive
maintenance for ICT
Infrastructure
Carryout annual reviews of Ensuring value for money on support 30% 40% 30%
the support and maintenance contracts
contracts
Implement SLAs and MoUs Ensuring effective utilization of IFMIS and 40% 40% 100%
with MDAs & Regions financing of post-implementation costs

49
Objective4: Review and update Training Effective and needs-based capacity 60% 100
Strengthening and capacity building plan building plan %
System Users Train Functional Application Strengthened IFMIS Support capacity 100
Capacity Support staff %
Train Technical IT Support Strengthened IFMIS Support capacity 20% 40% 60% 100%
staff
Train Application End Users Strengthened IFMIS end user capacity 40% 80% 100%
in use of IFMIS Modules
Train AOG, Internal Audit & Improved IFMIS oversight role 50% 100%
other oversight bodies in the
IFMIS business processes
develop staff motivation and Greater staff retention and morale 100%
retention policies for IFMIS
Objective5: Support personnel
Facilitating Establishment of Change Proper awareness of the IFMIS and its 100%
Stakeholder Agent Section benefits to the Reforms
BUY-IN 40% 80% 100%
Regularly update Better appreciation of the IFMIS and
stakeholders on the impacts motives of Top Management
and progress of the IFMIS
rollout

50
 6.11. Customs Department
Mission
Our mission is to encourage and strengthen trade, the rule of law and increasing domestic revenues
based on improved technical expertise and knowledge and adherence to international laws and
conventions.
Objectives
The main objectives of Customs Department are:
- Development of effective, efficient and uniform revenue collection systems and procedures
- Improvement of staff professionalism through clear understanding and application of the law
- Implementation of full declaration requirement by traders
- Work in partnership with the business community and other stakeholders through education
and awareness programmes.
SWOT ANALYSIS
STRENGTHS WEAKNESSES
• Stable political environment; • Poor internal communication and lack of
• Government commitment to custom uniformity in reporting;
reform; • Inadequate Customs enforcement to target smuggling
• Committed Customs leadership, and evasion of duty;
willing to change and create a modern, • Lack of Risk Management policy or practises to identify
efficient and professional Customs high risk areas/compliant trade;
Service; • Customs collection of duties and taxes through a cash only
• Creation of Customs Reform and process rather than through a more advanced, secure
Modernisation Committee to banking system;
recommend and monitor • Absence of research and development capacity for
implementation of reforms in line with customs improvement;
international standards; • Lack of sufficient budget allocated to Custom to perform
• Customs presence along international its core functions;
borders to enforce Customs • Legislation relating to many Customs functions has not
regulations; supported by internal been enforced and needs to be implemented in
checkpoints at key locations; conformity with the working conditions in Somaliland;
• Modern Customs Legislation to • Customs staff has not been trained in the legislation and
provide a legal basis for Customs lack knowledge of the laws. The translation of the
operations; legislation into Somali is poor and may leave Customs
• Information Technology; new systems open to legal challenge;
at key Customs locations to automate • There is a lack of modern facilities and resources at most
revenue collection, reporting functions Customs Offices. The poor physical conditions of offices
and control of transit procedures along and the lack of secure goods examination areas and
the Berbera Corridor; inspection tools/equipment (including
• Well-built core customs scanners) impact on the ability to enforce Customs
• Structure with flexibility to expand. controls.

51
 OPPORTUNITIES THREATS
Political will to modernise High inflation in Somaliland may deter increases
Customs; Donor/international support in goods importation/international investment in
for the implementation Somaliland;
of reforms.
Availability of Modern technology to improve Lack of cooperation from trade/stakeholders;
Customs IT systems.
Investment by DP World in Berbera Corridor Budget shortages/poor finances;
initiative to improve Customs facilities in
Somaliland and bring transit procedures into
line with international standards.
Trade and Transit Agreement with Ethiopia; Withdrawal of donor/international support;
will give Customs greater chances to
improve procedures and exchange of
information.
Somaliland geographical location in the Horn of Lack of internal communication to ensure
Africa. legislation is applied uniformly;
Lack of international recognition of Somaliland
affects opportunity.

52
 CUSTOMS DEPARTMENT
Goal Objective Strategy Performance indicator Time-Frame in Years Responsible
2019 2020 2021 2022 2023
Goal 1:Harmonize Objective 1: To uniform ✓ Develop Import procedure. 100% Custom
regulations and To Improve customs ✓ Develop Export procedure.
procedures in the Revenue Collection procedure ✓ Develop Transit and transhipment
preferential trading and procedure
areas Compliance ✓ Auction procedure
To adapt ✓ Produce invoices with all goods 15% 40% 70% 100%
international declaration
standards
Goal 2: Strength Objective 2: To increase ✓ Conduct staff training needs assessment. 20% 40% 70% 80% 100%
institutional capacity To build staff Customs staff ✓ Organize and conduct training based on
capacity skills identified needs
Goal 3: fostering Objective 3: To expand use ▪ Implement simplified, standardized 20% 50% 70% 90% 100%
Financial sector that To improve Trade of developed and harmonized customs procedure
supports economic Facilitation procedures ex: PAD, GDF and Risk management
growth.
Goal 4: Prevention of Objective 4 : To mechanize ▪ Develop Anti-smuggling Act 15% 50% 80% 100%
smuggling and To tackle illegal illegal traffic ▪ Develop risk management
contraband trade and human
Trafficking

53
 6.12. Legal Services Department
Mission
To undertake a course of actions to produce all laws and regulation needed to effectively implement
the Ministry policies, strategies and plans that promote economic growth, sound financial systems
and national development.

Objectives
The main objective is to strengthen the regulatory framework through amendments/review to the
existing financial laws and formulation of new legislation to ensure effective regulatory framework
and compliance.
- To provide relevant information and legal opinion to Minister Office on finance matters.
- To draft news legislation regulations/ MOUs, partnerships agreement, Ministerial decree,
contracts and etc and undertake revision tasks of existing laws
- To engage in stakeholder consultation, dialogue and assessment to contribute towards legal
formulation and application.
- To provide support to other Departments on legal matters and ensure law compliance
- To handle cases in courts in cooperation with Attorney General and establish an appropriate
internal mechanism to settle tax issues.
SWOT ANALYSIS
Strengths Threat
Well established legal and Enforcement Legislative implementation delays – PFM
Department
Offices and equipment. Some confused roles and responsibilities among
Departments/other external institutions.
Strong leadership and strategic direction Outdated and complex laws
Office in good building Inconsistency in the application of laws and regulations

Weakness Opportunities
Less Capacity Building and trainings especially Donor fund Support to Regulatory reforms
employee of the department
Loopholes in some laws and regulation that Political commitment and strong leadership by Hon.
can be obstacle legal reform Minister to strengthen intuitional capacity of MOFD.
Support for training and capacity building.

54
 LEGAL SERVICES DEPARTMENT
Strategy Objective Strategy Performance Indicator Time-Frame in Years Responsible
Goal
2019 2020 2021 2022 2023
Goal:1 Full Objective 1: 1: improve acts and Number of laws and regulations LEGAL
Implementation To Implement for all regulations trough activity implemented SERVICES
25% 55% 65% 90% 100%
for Laws & Financial Laws & theory of the departments.
Regulation Regulations.
Objective 2: 2: enhance legal approach 2: guidelines, procedures , LEGAL
To Formulate legal processes smoothly. regulations and decrees SERVICES
requirements, based on produced 30% 50% 65% 80% 100%
needs for the Ministry of
Finance Development.
Objective 3. 3: build and motivate 3: effective employee 15% 25% 50% 75% 100% LEGAL
To mentor all Employee Employee legal capacity. performance. SERVICES
should have knowledge to
the relevant existing Laws.
Objective 4. 4: legal assessment for 4: completed all legal financial 20% 25% 50% 80% 100% LEGAL
To Cover all Financial legal compliance active documents SERVICE
gaps in Ministry of Finance. regulations.

5: proposed policies and

Objective 5: procedures 15% 30% 55% 70% 100%
Preparation policy and 5. Upgrading existing legal
procedures guideline trough documents
acts.
6: articulate and translate all 6: General application and
Objective 6: necessary legal documents. legal compliance in 25% 40% 70% 90% 100%
Amendment five acts as per Departmental level.
needed.

55
 6.13. Public Relations & Information Department

Mission
To promote citizen awareness on payment of due taxes, encourage voluntary compliance,
inform and educate about government service delivery and development priorities
Objectives

- Inform the citizens the activities of the MoF

- Increase the citizen’s trust in MoF and build positive image
- Educate taxpayers/traders in compliance with Inland Revenue and customs laws and make
awareness campaigns
- Increase the accountability and transparency of MoF to build trust and partnership
- Build good relations with the public

SWOT ANALYSIS
Strengthens Weaknesses
Committed Staff. Lack of equipment (Lack of Cameras, Computers and
others);
Readiness of all the templates needed for Limited skilled staff; and Lack of transport;
the job (campaign management and Limited office space and Poor internet connection.
measurement, media coverage analysis, Head sections are not appointed yet;
working progress report templates) Lack of incentives.

Opportunities Threat
Political Will Lack of team work.
Professional Consultants (OPM- Biased mass media.
International)
Public receptiveness to tax education. Attitude Problem.
Lack of TOR for departments which leads to conflict on
activities and insufficient funding.
Lack of awareness and tax education among the public.
Poor public perception of the MoF.

56
 PUBLIC RELATIONS & INFORMATION DEPARTMENT
Strategic Goal Objective Strategy Performance indicator Time-Frame in Years Responsible
2019 2020 2021 2022 2023

Conduct seminars and public hearings Preparation of 20 seminars and 20% 40% 60% 80% 100% Public
Goal 1 Objective 1: Organize public outreach and 10 events of public hearing to Relation
Creating, To promote dialogues to engage with the general grow customer satisfaction
maintaining and transparency and public and taxpayers. Quarterly event basis,
presenting the improve citizen Carry out researches about taxpayer minimum 2 events in each
favourable image engagement perception. year.
of the Ministry. Inform and involve the public about Doing researches ones a year.
relevant information and progress of Production of video clips about
the various activities as they happen. the projects funded from the
Promote achievements of capital budget; it may consist of series
projects funded from the budget. of episodes.
Identifying compliance taxpayers to
be awarded ones a year.

Enhancing the public trust in the Increasing customer 30% 35% 50% 55% 65% Public
Ministry. satisfaction around. Relation
Objective 2: To Print Business Cards for Directors, DG, Making yearly business cards 20% 40% 60% 80% 100% Public
Promote the Vice Minister and the Minister. for the senior managers, and Relation
communication Print and publish MoFD branded the heads of the departments.
mechanisms of calendar, Note Books and Pens with Dairy branded books, pens,
MoFD. the Ministry’s Logo. calendars and brand tables.
Organizing quarterly press
releases to showcase
achievements and progress.

Objective 3: To Analyse daily news and articles of all Preparation of daily and 20% 40% 60% 80% 100% Public
identify fake news media related to the MoF. And then weekly reports. Relation
and react prepare a report on the findings.
Objective 4: To Identifying number of existing Regular basis. 100%
organize information ministry/sector policies, bills and
and publicize drafts bylaws.
events. Producing MoFD magazine

57
 6.14. Inland Revenue Department

Mission
Foster tax compliance with all tax laws through efficient collection of tax and non- tax
revenues while providing quality services to taxpayers.

Objectives
The key objectives of IRD are to:
- Expand the tax base;
- Achieve revenue targets by ensuring on-time filing and on-time payment of the correct
amount by taxpayers;
- Foster taxpaying culture through tax awareness and education programs;
- Improve the quality of service to taxpayers;
- Restructure IRD to better achieving its mission.

SWOT ANALYSIS
Strengths Weaknesses
Existence of modern Revenue Act and Incomplete IRD taxpayer
Regulations offering powers that are needed to database. Large number of taxpayers
administer tax; not registered with IRD
Committed leadership and IRD management Filing compliance rate very low. Many taxpayers are
team; not filing tax returns: Payroll, Income Tax, etc.
Presence of IRD offices at decentralized levels: IRD staff not trained on New Revenue Act and
Regions, Districts and villages regulations;
Incomplete and low reliability of tax records;
Poor quality of statistics and reporting tools;
Absence of taxpayer education function;
Delay of taxpayer account management system;
Actual stock of tax arrears not known;
Inadequate IT infrastructure
Limited staff capacity

Opportunities Threats
Strong political support from President Rampant tax avoidance culture. Tax evasion,
Office corruption and resistance to pay tax deeply rooted in
and Ministry of Finance; the community;
Committed Donor Support; Lack of willingness to fight corruption and external
interferences by some senior officials in tax
administration
Good working relationship with Chamber Limited literacy level of taxpayers that affects their
of Commerce, Association of Accountants, fiscal citizenship;
Ministry of Investment, Port Authority, etc.
International donor’s support. Limited collaboration between IRD and key
stakeholders on tax matters;
Depreciation of Somaliland shilling hampers economic
growth.
Frequent changes, transfers and high turnover of senior
managers within IRD

58
 INLAND REVENUE
Strategies Objective Strategies Performance Indicator Time-Frame in Years Responsibilities
Goal

2019 2020 2021 2022 2023

Goal 1: Objective1: To developing and -Taxpayer head count and registration 20% 60% 70% 80% 100% Inland Revenue
Strengthening improve domestic expanding -Finalization of Taxpayer
Domestic Revenue revenue Somaliland Segments/Categories
collection in an mobilization Taxpayers -Provision of TIN by IFMIS to each
efficiency and employee categories (public, private,
fairness NGOs etc
Objective 2. To
automate revenue
Collection

Objective3:

To increase Tax Development and -Improve, updating and simplifying 25% 50% 80% 100% Inland Revenue
base Improving core taxpayer return filings in Hargeisa
function activities Districts (IRD take over responsibility)
-Improving deb management and
taxpayer compliance systems
-Introducing IFMIS generated TINs
- Use of IFMIS in revenue Collection
Use IFMIS in Revenue Reporting in all
regions
Objective 4:
Under SLFMIS -Introducing itax (automation of IRD) 30% 70% 90% 100% Inland Revenue
To Increase
And other data base -Modernization and renovation of tax
country’s Inland
centers
Revenue share to

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the National Efficiency and -Implement CIT and provisional income 14% 40% 60% 85% 100% Inland Revenue
Revenue effectiveness, of tax
revenue collection. -Optimize stakeholder relations in
Objective5:To revenue mobilization
Enhance taxpayer -Operationalizing and fully functioning of
knowledge LTO at the HQ and S&MO at tax centers
- Implementation of Withholding Taxes
- Introduction of GST machines (EFD)
Objective6: To - Conducting and approving tax audit
deliver best cases
service to
Taxpayers

Objective7:
To establish Development and -Establish Tax Tribunal 10% 70% 80% 100% Inland Revenue
Somaliland Implementation of -Eliminate the collection of illegal fees by
Revenue Authority acts, regulations and MDAs
polies. -Simplification of tax Tariffs and payment
schedule
-Implementing GST machines (EFD)
Regulation
foster taxpaying Improved taxpayer knowledge about 20% 40% 60% 80% 100% Inland Revenue
culture through tax laws, their rights and obligations through
awareness and effective outreach and accessible
education programs; information (taxpayer education and
awareness)

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 improve the quality -Operationalizing and fully functioning of 10% 50% 70% 80% 100% Inland Revenue
of service to taxpayer help and information desk
taxpayers; -Official extension of working hours
Introduction of E-cashier
-Introduction of E-tax (E- registration, E-
filing, electronic tax cash registers, etc )
-Payment and collection of tax methods
through commercial banks
-Introducing of Tax Disputes/Appeals
within IRD
-Introducing Taxpayers National Day

Restructure IRD to -Implementation of SLRA 30% 70% 80% 100% Inland Revenue
better achieving its -Transforming IRD structure with
mission. Functions
-IRD staff specialization/Core Tax
Specialization.
Objective8: IRD Research and -Conducting research on factors 10% 30% 50% 100% Inland Revenue
To carry out development affecting the performance of IRD
Research and (experimental)
development. -Conducting tax surveys
-Study Tours
-Conducting the TADAT assessment for
IRD
-IRD Institute of Taxation

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