Strengthening Local Governance and Municipal Finance through Property Taxation

Published by UEFB on

Problem Statement

In Somalia, as of 2016, municipal finance interventions, revenue collection and management capacity of local governments was almost non-existent.

Support provided by UN-Habitat

The local government finance policy for Somaliland and Puntland was developed. Besides, a set of procedural manuals, designed to support the implementation of the policy, were also developed. These include local government financial management manual, and internal audit charter and district audit committee manual. These manuals are all translated into Somali and they are being used as government tools for improving financial management functions. Internal audit charter and district audit committee manuals also provide strong and systematic internal oversight mechanisms. Internal audit units of Hargeisa, Berbera, Bosaso and Garowe are streamlined and now use proper internal audit charter.

Outcome(s)

Property tax collection increased more than 300% in most of the local governments between 2008 and 2017. Ultimately, the property survey, database management, awareness raising and accounting/billing systems have contributed to the maximization of municipal revenue. The maximized revenue was then re-invested in people-focused social services and consequently it contributed to deepen peace and stability, build trust and improve transparency and accountability.

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