As the Third-Party Monitoring and Learning partner on the FCDO’s Somalia Monitoring Programme, we provide the UK Government with evidence of what works and what doesn’t work on their Somalia programming; and with learning and technical assistance to improve programmatic monitoring and evaluation (M&E).
In this blog, Desmond Boi, our Monitoring & Evaluation Technical Assistance Lead, shares the insights he has learned from the programme on the importance of Value for Money tracking on the billions being spent by the international community to support Somalia’s recovery and growth.
In recent years, Somalia has seen a significant influx of international aid aimed at addressing its complex development challenges. From humanitarian assistance to long-term development projects, billions of pounds are being invested to support the country’s recovery and growth.
However, with such substantial investment comes the critical responsibility of ensuring that funds are used effectively and efficiently. This is where the concept of Value for Money (VfM) becomes essential.
VfM in development programming is a multifaceted approach that seeks to optimise the use of resources to achieve the best possible outcomes. It involves assessing projects not just on their immediate outputs, but also on their cost-effectiveness, sustainability, and broader impact. The key components of VfM are economy, efficiency, effectiveness, and equity.
VfM in FCDO programming is about maximising the impact of each pound spent to improve poor people’s lives; and the purpose of the VfM drive is to develop a better understanding (and better articulation) of costs and results so that they can make more informed, evidence-based choices. This is a process of continuous improvement.
Why tracking VfM is crucial in Somalia
We have increasingly noted during our Third-Party Monitoring work that programmes that are well-planned and efficiently executed are more likely to be sustainable and have a lasting impact. By focusing on VfM, development programmes can be designed to not only address immediate needs but also to foster long-term resilience and self-sufficiency. This is particularly important in Somalia, where building sustainable livelihoods and strengthening institutions are key to achieving long-term stability.
FCDO and other development partners are more likely to invest in regions where there is evidence of efficient and effective use of funds. Our analysis over the past two years of SMP III work has demonstrated that a commitment to VfM will enhance Somalia’s reputation as a reliable partner, potentially attracting more funding and support for critical projects.
While the benefits of tracking VfM are clear, implementing it in Somalia comes with challenges. The country’s ongoing security concerns, political instability, and limited infrastructure can hinder data collection and monitoring efforts. Moreover, the need for rapid humanitarian responses can sometimes overshadow the emphasis on efficiency and cost-effectiveness.
Over the past year, SMP III has assisted programmes in reviewing their VfM measurement frameworks and methodologies. The supported programmes include Somaliland Development Fund – Phase II and Public Resource Management in Somalia – Phase II. Evidently, with limited resources available, it is crucial that every pound spent on programme interventions contributes to tangible improvements. Tracking VfM helps FCDO and other donors and implementers to ensure that funds are being used wisely and that projects are delivering real benefits to the population.
Documenting VfM tracking for long-term impact
It has been important for the SMP III team to provide continuous advisory services on VfM tracking, providing a framework for accountability, and helping to build trust between donors, the Somali government, and the population. Our work has focused on preventing misallocation and misuse of funds, which would obviously be detrimental to the country’s development efforts. Generally, while parameters of economy and efficiency are measurements that are embedded within most programmes, effectiveness measurements still pose a big challenge as they are difficult to establish accurately.
Measuring VfM in the context of long-term transformative change in development programmes poses unique challenges due to the extended timeframes and complex nature of such initiatives. However, recognising the importance of demonstrating efficiency, effectiveness, and economy in these programmes, there are specific strategies and considerations that can be employed to enhance VfM measurement. We carefully document these strategies in technical advisory documents for our clients and take action to ensure the are understood and implementable.
In conclusion, despite the challenges encountered during VfM measurement, the pursuit of VfM in development programming is not only beneficial but necessary for Somalia’s progress. It ensures that scarce resources are utilised to their fullest potential, promotes transparency, and builds a foundation for sustainable development. By prioritising VfM, stakeholders can help ensure that development initiatives truly benefit the people of Somalia, fostering a brighter and more stable future for the country.