MOGADISHU, 13 October 2025 – Somalia hosted the inaugural Global Shield against Climate Risks In-Country Workshop in Mogadishu last month, a crucial milestone of Somalia´s In-Country Process (ICP). Convened by the Ministry of Finance of the Federal Government of Somalia, with support from the Global Shield Secretariat, the workshop brought together a broad range of high-level representatives, national and international stakeholders to explore pathways toward greater climate and financial resilience.
Somalia, as a Fragile and Conflict-Affected State (FCS), continues to face severe challenges including climate-related shocks such as droughts, riverine and flash floods as well as tropical cyclones. These challenges are further exacerbated by limited fiscal space and dependence on humanitarian aid oftentimes leading to post-event interventions. The In-Country Workshop marks a substantial milestone in the country’s efforts to shift from reactive aid-driven responses to proactive, risk-informed and context-sensitive financial protection mechanisms.
Over the two days, participants explored how Climate and Disaster Risk Finance and Insurance (CDRFI) solutions could be tailored to the Somali context, how traditional ways of dealing with risk can be linked to pre-arranged finance instruments and how key institutions can be strengthened further to deliver CDRFI. A key emphasis was laid on identifying climate risk finance opportunities for particularly vulnerable and underserved population groups, including Internally Displaced People (IDPs) which constitute around 20% of the population and of which most live in urban centres.
“The initiative aligns perfectly with Somalia´s National priorities and our commitment to strengthening resilience against climate-related risks. The In-Country Process under the Global Shield complements the national efforts, by helping us identify protection gaps, strengthen our disaster risk financing architecture, and ensure that vulnerable communities are not left behind.”, said H.E. Ahmed Omar Mohamed, State Minister of Environment and Climate Change.
The event convened a diverse group of stakeholders, including representatives from the public and private sector, civil society organisations, public institutions, and international development partners. Together, the stakeholders discussed the preliminary results of the ongoing gap analysis including the absence of a legal and regulatory framework for Disaster Risk Finance and Management, the nascent local insurance market and the unexhausted potential of leveraging both the private and financial sectors. The country´s stakeholders demonstrated a clear commitment to exploring and co-creating solutions that support domestic market development and strengthening of financial solutions and mechanisms.
“Somalia needs pre-arranged, predictable financial protection from climate disaster risk, especially as the frequency of climate disasters has increased in our country. The Global Shield initiative offers us an opportunity to move from reactive crisis management to proactive preparedness. By building systems that provide fast and reliable financing when disasters strike, we can protect the most vulnerable communities and reduce long-term economic damage and pain.“, said Deputy Governor of the Central Bank of Somalia, Dr. Ali Yasin Sheikh Ali.
As global humanitarian aid becomes increasingly constrained, stakeholders emphasised the importance of Somalia taking ownership of its risk financing approach, aligning it with national priorities and capabilities.
“In Somalia, we have seen our fair share of climate disasters over the last three decades, with cyclical extreme climatic events over the last 15 years. The recurring nature of climate disasters calls for more preventative solutions, not only emergency response. That is why a risk-layered framework—budget contingencies for frequent small events, parametric insurance for mid-layer shocks, and concessional finance for extreme events—would deliver faster, more reliable funding and relief to those affected by climate disasters. We are encouraged by the insights and support that Global Shield offers in addressing these climate risks.”, continued State Minister of Finance, Abdiqafar E. Haange.
This inaugural workshop underscored Somalia’s commitment to forging a resilient and financially protected future, while also contributing to the broader Global Shield ambition: safeguarding the most climate-vulnerable countries and communities against the ever-increasing risks posed by climate shocks.
“Somalia’s engagement with the Global Shield is a crucial building block to shifting from reactive to proactive risk financing and providing the country with an access point to request tailored support to address the most urgent protection gaps. We remain committed to working with the government and with all partners in this process to provide faster and more reliable financial protection for Somali communities.”, stated Simon Hagemann, Head of Cooperation, Embassy Germany.
Building upon the multi-stakeholder discussions and confirmed findings, Somalia is now working towards finalising its Gap Analysis, which will form the foundation of a targeted Request for CDRFI Support. With a steadfast commitment and drive to green-light and initiate implementation in early 2026, the country aims to submit its Request by the end of 2025.
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About the Global Shield against Climate Risks:
Launched at COP27 by the V20 Group of Finance Ministers and the G7, the Global Shield against Climate Risks aims to increase protection for climate-vulnerable economies and communities by providing and facilitating substantially more and better pre-arranged and trigger-based finance against disasters and climate risks. Greater financial protection and faster and more reliable disaster preparedness and response will contribute to effectively responding to losses and damages from climate change.
CONTACT
Global Shield Secretariat: secretariat@globalshield.org