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Public Procurement in Somalia

Public procurement in Somalia is a central instrument for rebuilding state institutions, restoring essential public services, and implementing donor-funded recovery and development programs. As a low-income and post-conflict country, Somalia’s public procurement system is closely linked to public financial management reforms, transparency initiatives, and international development partner support.

The procurement framework is federally anchored, with oversight by the Ministry of Finance and implementation across federal ministries, agencies, and federal member states.

Country & Economic Overview

Institutional & Governance Framework

Public procurement policy and oversight in Somalia are coordinated by the Department of Public Procurement within the Ministry of Finance. Procurement execution is decentralized across ministries and public entities at the federal level.

• Public Procurement Agency (PPA): Department of Public Procurement
• PPA Website: http://www.mof.gov.so/public-procurement
• Central Purchasing Body: Not designated
• Procurement Model: Decentralized with federal oversight

Legal & Regulatory Framework

Somalia’s procurement system is governed by a modern legal framework aligned with international good practices, particularly UNCITRAL-based principles, and supported by World Bank and IMF reforms.

• Key Legal Instruments:
• Public Procurement, Concession and Disposal Act, 2015
• Public Procurement Act, 2020
• Public Procurement Regulations

Key Legal Provisions

• Value for Money (VfM): Article 67 (3)
• MEAT / QCBS: Article 94 - Quality and cost-based selection
• Sustainability Considerations: Article 69
• Domestic Preference: Article 34 - Margin of preference
• Bid Securities: Article 78
• Public Bid Opening: Article 79

Procurement Procedures & Thresholds

E-Procurement & Digitalization

Somalia does not yet operate a unified national eProcurement platform. Procurement processes remain largely manual, with gradual digital publication of procurement information through Ministry of Finance channels.

• National eProcurement System: Not operational
• World Bank-supported system: No
• Electronic tendering: Limited / pilot usage

Transparency, Oversight & Complaints

The legal framework establishes transparency obligations and an independent procurement review mechanism.

• Independent Procurement Review Panel: Article 165
• Contract award disclosure: Schedule 3
• Public access to tender documents: Limited, improving

Oversight is reinforced through public financial management reforms and donor monitoring mechanisms.

Sustainability & Green Public Procurement

While Somalia’s procurement law includes references to sustainability and appropriate procurement methods, a dedicated green public procurement policy or roadmap has not yet been formally adopted.

• Green Procurement Strategy: Not formally defined
• Mandatory Green Criteria: No
• Environmental considerations: Embedded in procurement method selection

Social & Inclusive Procurement

The procurement framework supports domestic participation and inclusive economic development.

• Domestic Preference: Article 34
• Women-owned businesses: Referenced in Procurement Act, 2015
• SME-specific quotas: Not explicitly defined

International & Donor-Funded Procurement

Somalia is highly dependent on donor-financed procurement executed under international partner rules.

• African Development Bank (AfDB)
• International Monetary Fund (IMF)
• International Fund for Agricultural Development (IFAD)
• United Nations agencies

Donor-funded projects often apply World Bank, AfDB, or UN procurement procedures alongside national law.

Practical Insights for Suppliers

• Most procurement opportunities are donor-financed
• Quality-and-cost-based selection is common for services
• Strong compliance documentation is essential
• Local partnerships significantly improve success rates

Public procurement in Somalia is best suited for suppliers experienced in fragile-state environments, humanitarian logistics, infrastructure rehabilitation, and donor-funded development programs.