Mogadishu (Somalia Today) — Internal reports reveal that delays, graft claims plague AfDB projects in Somalia, with nearly half of the bank’s portfolio red-flagged.
In mid-2025, an internal assessment found that 42 percent of the African Development Bank’s (AfDB) 22 projects in the country are on a watchlist, according to portfolio performance reports that The EastAfrican obtained. By contrast, the figure far exceeds the bank’s corporate target of 25 percent for such warnings.
Projects earn a red flag when they breach implementation timelines. As a result, the widespread delays threaten to blunt the intended impact of the aid on the Horn of Africa nation’s fragile recovery.
Somalia relies heavily on international partners, such as the AfDB, for recovery and infrastructure projects.
The bank’s portfolio focuses on building resilience and institutional capacity. However, the country ranked 179th out of 180 nations on Transparency International’s 2024 Corruption Perceptions Index, a persistent challenge for managing public resources.
In one case, a senior government official supervising one project alleged severe misconduct. “I am yet to witness the level of corruption, abuse of office, and incompetence that currently pervades the project,” the officer said, requesting anonymity for fear of reprisals.
“The fundamental checks and controls, which are essential for the sound management of public resources, have been planned for further elimination in order to achieve narrow personal interests,” the official added.
AfDB cites ‘capacity limits’
The AfDB stated that corruption and misconduct do not influence its “red-flagging” system, which tracks implementation schedules. It added that the bank “has a strict policy against corruption, fraud, and all forms of misconduct.”
In a statement, an AfDB spokesperson told The EastAfrican that delays in the Somalia projects result from a combination of factors, including “limited access to certain project sites and delayed payment processing.”
Moreover, the spokesperson cited “capacity limitations in financial management, procurement, and safeguards” as significant factors.
“The high turnover of qualified staff, particularly in Mogadishu, and periodic weather-related hazards such as flooding restrict site access, further compounding these challenges,” the bank said.
For example, among the stalled initiatives, the AfDB approved $5.4 million in additional financing for the Build Resilience for Food and Nutrition Security (Brefons) programme in 2022. That period marked the region’s worst drought in over 40 years, which displaced an estimated 1.4 million people in Somalia.
Yet, more than three years later, the affected Somalis have not yet reaped the benefits from the project. A progress report from July showed only 4.57 percent of the committed amount had been disbursed. The original Brefons project, initiated in 2021, has also been red-flagged by the AfDB.
Similarly, the bank lists another initiative, the Institutional Support for Economic Governance project, which aims to strengthen domestic revenue, as “under close watch.”
Bank’ confident’ of improvement
The AfDB expressed confidence that it would lower the rate of delays in its red-flagged Somalia development fund.
“The percentage of ‘red-flagged’ projects currently stands at 42 percent… down from 52 percent in June 2025, reflecting improvement,” the spokesperson said. The bank aims to lower the rate below its 25 percent target by the end of the year.
The AfDB stated that its plan to enhance portfolio performance in Somalia “hinges heavily on capacity building, training, and fiduciary clinics.”
Projects that remain red-flagged for extended periods risk cancellation. Resolving the complex mix of delays, graft claims [plaguing] AfDB projects in Somalia remains critical to ensure the funds achieve their intended impact on the country’s recovery.
