De-Risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa (P176517) Stakeholder Engagement Plan – Somalia JULY 13, 2022 TABLE OF CONTENTS TABLE OF CONTENTS...................................................................................................................................... i List of Tables ................................................................................................................................................. ii List of Abbreviation and Acronyms .............................................................................................................. iii GLOSSARY OF KEY TERMS ............................................................................................................................ iv 1 INTRODUCTION ..................................................................................................................................... 1 2 REGULATORY CONTEXT ........................................................................................................................ 3 2.1 National Legal and Institutional Framework................................................................................. 3 2.2 World Bank Requirements ............................................................................................................ 3 2.3 Gap Analysis .................................................................................................................................. 5 3 OBJECTIVES OF THE STAKEHOLDER ENGAGEMENT PLAN .................................................................... 7 3.1 Approaches to Stakeholder Engagement ..................................................................................... 8 4 PROJECT DEVELOPMENT OBJECTIVE DESCRIPTION AND COMPONENTS ............................................. 9 4.1 Project Development Objective .................................................................................................... 9 4.2 Project Description........................................................................................................................ 9 4.3 Project Components ..................................................................................................................... 9 5 SUMMARY OF PREVIOUS STAKEHOLDER ENGAGEMENT UNDER THE PROJECT ................................ 11 6 STAKEHOLDERS IDENTIFICATION AND ANALYSIS ............................................................................... 13 6.1 Project affected Parties............................................................................................................... 13 6.2 Other Interested Parties ............................................................................................................. 13 6.3 Vulnerable Groups (Female / Child Headed households) ........................................................... 14 7 STAKEHOLDER ENGAGEMENT PROGRAM .......................................................................................... 16 7.1 Purpose and Timing of Stakeholder Engagement Program ........................................................ 16 7.2 Information to be Disclosed ........................................................................................................ 16 7.3 Proposed Strategy for Information Disclosure ........................................................................... 22 7.4 Proposed Strategy for Consultation............................................................................................ 22 7.5 Inclusion Plan .............................................................................................................................. 27 8 RESOURCES AND RESPONSIBILITIES FOR SEP IMPLEMENTING ACTIVITIES ........................................ 29 8.1 Resources .................................................................................................................................... 29 8.2 Management Functions and Responsibilities ............................................................................. 29 8.2.1 Responsibilities ................................................................................................................... 30 8.3 Estimated Budget ........................................................................................................................ 31 9 GRIEVANCE REDRESS MECHANISM .................................................................................................... 32 i 9.1 Description of the GRM .............................................................................................................. 32 9.2 GRM Consultation levels ............................................................................................................. 35 9.3 World Bank Grievance Redress Service (GRS). ........................................................................... 36 10 MONITORING AND REPORTING ...................................................................................................... 37 10.1 Involvement of Stakeholders in Monitoring Activities ............................................................... 37 10.2 Reporting back to Stakeholder Groups ....................................................................................... 37 11 Annexes ........................................................................................................................................... 39 11.1 Annex 1: List of Previous Stakeholder Engagement under the Project ...................................... 39 11.2 ANNEX II: STAKEHOLDER ENGAGEMENT REPORT ...................................................................... 42 11.2.1 Meeting in Pictures ............................................................................................................. 50 11.3 Annex III-a: List of Meeting Attendees During SEP Preparation ................................................. 52 11.4 Annex III-b: Stakeholders Engaged during the Social Assessment ............................................. 56 11.5 ANNEX IV: Grievance Registration Form (GRM/001) .................................................................. 58 11.6 ANNEX V: Acknowledgement Receipt (GRM/002) ..................................................................... 59 11.7 ANNEX VI: Meeting Record Structure (Grievance Redress Committee & Other Meetings) (GRM/003). ............................................................................................................................................. 60 11.8 ANNEX VII: Grievance Investigation Report (004) ...................................................................... 61 11.9 ANNEX VIII: Quarterly Report of Registered Complaints (GRM/005) ......................................... 62 List of Tables Table 2-1: Gap Analysis between the National Legislation and World Bank ................................................ 5 Table 7-1: Engagement Activities during Project Preparation .................................................................... 17 Table 7-2: Summary of Stakeholder Needs for Information Disclosure ..................................................... 18 Table 7-3: Stakeholders and Their Influence on the Project ...................................................................... 19 Table 7-4: Engagement Activities and Disclosure during Project Preparation & Implementation ............ 23 Table 8-1: SEP Implementation Budget ...................................................................................................... 31 Table 9-1: GRM Consultation Levels ........................................................................................................... 35 ii List of Abbreviation and Acronyms AIDS Acquired Immunodeficiency Syndrome ASALs Arid and Semi-Arid Lands CBOs/NGOs Community Based Organization / Non-Government Organizations CLO Community Liaison Officer DRIVE De-Risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa ESCP Environmental and Social Commitment Plan ESF Environment and Social Framework ESIRT Environmental and Social Incident Reporting ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESS Environmental and Social Standard FGS Federal Government of Somalia FMS Federal Member States GBV Gender-Based Violence GC Grievance Committee GDP Gross Domestic Product GHG Greenhouse Gas GRID Green, Resilient and Inclusive Recovery GRM Grievance Redress Mechanism GRS Grievance Redress Service HIV Human Immunodeficiency Virus HoA Horn of Africa IDPs Internally Displaced Person IFC International Finance Corporation ILRI International Livestock Research Institute LMP Labour Management Procedure M&E Monitoring and Evaluation MoCI Ministry of Commerce and Industries MoF Ministry of Finance MoFLR Ministry of Livestock and Forestry Range NGOs Non-Government Organizations PCM Private Capital Mobilization PIU Project Implementation Unit SCALED-UP Somalia Capacity Advancement, Livelihoods, and Entrepreneurship, Through Digital Uplift Program SEA Sexual Exploitation & Abuse SEP Stakeholder Engagement Plan SOBs Somali Bureau of Standards SRA Security Risk Assessment WBG World Bank Group WHO World Health Organization iii GLOSSARY OF KEY TERMS Affected Communities refer to groups of people living close to a project that could potentially be impacted negatively by a project. Stakeholders are persons or groups who are directly or indirectly affected by a project, as well as those who may have interests in a project and/or the ability to influence its outcome, either positively or negatively (IFC’s Handbook on Stakeholder Engagement (2007)); workers, local communities directly affected by the project and other stakeholders not directly affected by the project but that have an interest in it, e.g. local authorities, neighboring projects, and/or nongovernmental organizations, etc. Consultation is the process of gathering information or advice from stakeholders and taking their views into account when making project decisions and/or setting targets and defining strategies. Engagement is the process in which a company builds and maintains constructive and sustainable relationships with stakeholders impacted over the life of a project. This is part of a broader “stakeholder engagement” strategy, which also encompasses governments, civil society, employees, suppliers, and others with an interest in the project. Environmental and Social Impact Assessment is an assessment comprising various social and environmental studies which aim to identify project environmental risks and impacts and design appropriate mitigation measures to manage negative impacts and enhance positive ones. Grievance Redress Mechanism is a process for receiving, evaluating, and addressing project- related complaints from citizens, stakeholders, and other affected communities. Non-Governmental Organizations - Private organizations, often not-for-profit, that facilitate community development, local capacity building, advocacy, and environmental protection. Partnership - partnership in the context of engagement is defined as collaboration between people and organizations to achieve a common goal and often share resources and competencies, risks, and benefits. A stakeholder Engagement Plan is a plan that spells out how stakeholders will effectively participate and make the decision on issues affecting them throughout the life of the project and specifies activities that will be implemented to manage or enhance engagement. iv 1 INTRODUCTION 1. Somalia remains a fragile country despite the substantial progress made in recent years. Since 2012, Somalia has had a sustained period of political, and economic progress. Consequently, the country has a unique opportunity to escape from decades of conflict and fragility. substantial challenges remain, including access barriers to services, enabling economic opportunities, reconciliation, security sector reform, widespread malnutrition, recurrent drought, and poverty. 2. Livestock contributes considerably to the HoA economies. In Somalia it contributes more than 80 percent of the Gross Domestic Product (GDP); pastoralists provide the main source of meat and milk products. Additionally, Somalia enjoys a robust livestock source, especially for the Middle East market, and accounts for the largest camel population in the world. 3. While livestock represents the most profitable ventures in the HoA region and Somalia, livestock herders are faced with perennial drought cycles that affect their stock and by extension suppress their income considerably. Also, livestock producers derive limited value from the trade and this is because of multiple reasons including lack of quality infrastructure to trace livestock, limited resources for disease control, irregular sale patterns, and lack of public livestock price information resulting in an asymmetry of information among others. In Somalia, the entire system of quality infrastructure to trace livestock and ensure consistency of quality standards is missing which results in lower prices for Somalia livestock exports as importing countries need to do additional checks. 4. The World Bank—working closely with the governments of Somali, Ethiopia, Kenya, and Djibouti—proposes to de-risk pastoralists by increasing their access to financial services and risk transfer, and better connecting them to markets. Under the De-Risking, Inclusion and Value Enhancement of Pastoral Economies in the Horn of Africa project ( DRIVE), a package of financial services and risk transfer (drought insurance) is proposed to protect pastoralists against recurring drought shocks and support trade infrastructure for cross-border and small- scale trade. 5. The project is designed as a regional intervention to benefit from economies of scale, and specialization, and to support trade so that countries gain higher value than each acting alone. It will also have peacebuilding, scale-up risk finance, and improve quality infrastructure and trade. In addition, the project is also aligned with the Africa Regional Integration Strategy; supports the Green, Resilient and Inclusive Recovery (GRID); contributes to the Private Capital Mobilization (PCM) agenda, and complements other initiatives in the region like the IFC HoA Livestock Sector Approach. 6. This Stakeholder Engagement Plan (SEP) has been prepared by the Ministry of Finance of the Federal Government of Somalia (MoF)—together with other government ministries including the Ministry of Commerce and Industries, Ministry of Livestock and Forestry Range, Somali Bureau of Standards and Central Bank of Somalia—for the De-Risking, Inclusion and Value Enhancement of Pastoral Economies in the Horn of Africa (DRIVE) Project, supported by the 1 World Bank Group (WBG). As per the WBG’s Environment and Social Framework (ESF), and specifically under Environmental and Social Standard 10 (ESS10), Stakeholders’ Engagement and Information Disclosure, the borrower shall provide stakeholders with timely, relevant, understandable, and accessible information, and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination, and intimidation. 7. Stakeholder engagement is an inclusive process conducted throughout the project life cycle. Where properly designed and implemented, it supports the development of strong, constructive, and responsive relationships that are important for the successful management of a project’s environmental and social risks. Stakeholder engagement is most effective when initiated at an early stage of the project development process, and remains an integral part of early project decisions and assessment, management, and monitoring of the project’s environmental and social risks and impacts. 8. The stakeholder engagement process for the project preparation will observe Covid-19 prevention measures as recommended by the Ministry of Health, World Health Organization, and the World Bank ESF/Safeguards Interim Note: Covid-19 Considerations in Construction/Civil Works Projects. 9. The findings of the pastoral survey conducted by the International Livestock Research Institute (December 2021) show that poverty rates are high in Somalia and concentrated in rural areas (where most pastoralists and agro-pastoralists reside) and among the internally displaced persons (IDPs). The dependency ratio is highest in these areas and these populations are the most vulnerable to drought risks. The DRIVE projects offer a huge opportunity to improve livelihoods and increase resilience in Somalia. Specifically, potential positive impacts include; empowering women, given the intra-household dynamics, by strengthening the livestock value chains and increasing access to financial services; addressing conflicts and improving the quality of livestock by supporting investment in fodder production, and promoting livestock trade both domestic and exports through investment in improved infrastructure. The project is also expected to have negative environmental and social impacts. The expected social negative impact includes (i) failure by the most vulnerable and minority groups to contribute to the insurance premium and savings; under Component 1, causing further marginalization of the already marginalized groups. Also, the lack of mobile phones and reliable connectivity by some pastoralists might exercabate their exclusion based on the fact that component 1 is designed in a manner that relies heavily on technology. In addition, due to the nomadic nature of some pastoralists, there might be limited meaningful engagements due to a lack of accessibility affecting the overall project perception and community buy-in. The fact that the project will also empower women groups, the project might cause an increase in the GBV SEA/H violence against progressive women. On the other hand, the environmental impact includes: impact on habitat fragmentation and overgrazing, groundwater and potable water source pollution among others due to component 2 activities. The ESMF and other project instruments are prepared in a way that provides a mechanism to avoid, minimize and mitigate the negative impacts of the project. 2 2 REGULATORY CONTEXT 2.1 National Legal and Institutional Framework 10. In all Somali territories, policies and legislation concerning stakeholder consultation are yet to be developed. Article 32 of the Somalia Provisional Constitution, 2012 elaborates on the Right to access information held by the state, or held by another person, and is required for the exercise or protection of any other just right. There is a need for the Federal Parliament to enact laws to ensure the right of access to information is enjoyed by all. Other relevant provisions applicable to the project include: i. Art. 11 provides that all citizens have equal rights regardless of sex and that the State must not discriminate against any person based on gender. ii. Article 24(5) stipulated that all workers, particularly women, have a special right of protection from sexual abuse, segregation, and discrimination in the workplace. Every labor law and practice shall comply with gender equality in the workplace 11. The Labour Code of 1972 stipulates that all contracts of employment must include a) the nature and duration of the contract; b) the hours and place of work; c) the remuneration payable to the worker; and c) the procedure for suspension or termination of a contract. Furthermore, all contracts must be submitted to the competent labor inspector for pre- approval. 12. The Code stipulates that workers have the right to submit complaints and the employer must give the complaints due consideration. Remuneration must be adequate given the quality and quantity of the work delivered and must be non-discriminatory in regards to age, gender, and other aspects. The maximum number of working hours per week is 8 hours per day and 6 days per week. 2.2 World Bank Requirements 13. The World Bank’s Environmental and Social Framework (ESF)’s Environmental and Social Standard (ESS) 10 “Stakeholder Engagement and Information Disclosure”, recognizes ‘the importance of open and transparent engagement between the Borrower and project stakeholders as an essential element of good international practice’. Specifically, the requirements set out by ESS10 are the following: • Borrowers will engage with stakeholders throughout the project cycle, commencing such engagement as early as possible in the project development process and in a timeframe that enables meaningful consultations with stakeholders on project design. The nature, scope, and frequency of stakeholder engagement will be proportionate to the nature and scale of the project and its potential risks and impacts. Borrowers will engage in meaningful consultations with all stakeholders. 3 • Borrowers will provide stakeholders with timely, relevant, understandable, and accessible information, and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination, and intimidation. The process of stakeholder engagement will involve the following, as set out in further detail in this ESS: (i) stakeholder identification and analysis; (ii) planning how the engagement with stakeholders will take place; (iii) disclosure of information; (iv) consultation with stakeholders; (v) addressing and responding grievances; and (vi) reporting to stakeholders. • The Borrower will maintain and disclose as part of the environmental and social assessment, a documented record of stakeholder engagement, including a description of the stakeholders consulted, a summary of the feedback received, and a brief explanation of how the feedback was considered, or the reasons why it was not. • A Stakeholder Engagement Plan proportionate to the nature and scale of the project and its potential risks and impacts need to be developed by the Borrower. It must be disclosed as early as possible, and before project appraisal, and the Borrower needs to seek the views of stakeholders on the SEP, including on the identification of stakeholders and the proposals for future engagement. If significant changes are made to the SEP, the Borrower must disclose the updated SEP. According to ESS10, the Borrower shall also propose and implement a grievance mechanism to receive and facilitate the resolution of concerns and grievances of project-affected parties related to the environmental and social performance of the project promptly. 14. As per Guiding Notes 25.3, the borrower is expected to conduct stakeholders’ consultation in line with the Good Faith Negotiations. Thus, SEP is required to implement meaningful consultation with stakeholders in line with the Good Faith Negotiation that involves: (a) willingness to engage in a process and availability to meet at reasonable times and frequency; (b) sharing of information necessary for informed negotiation; (c) use of mutually acceptable procedures for negotiation; (d) willingness to change initial positions and modify offers where possible; and (e) provision of sufficient time for the process. In addition, the World Bank’s ESF provides specific provisions that target differentially vulnerable groups of people such as pastoralists as required in ESS10 (paragraphs 19-22). For every project cycle, the borrower is expected to make meaningful consultation and informed decisions with the pastoralist in a culturally appropriate and gender and intergenerationally inclusive manner. Likewise, as per the reference, the borrower has undertaken a process of meaningful consultation in a manner that provides stakeholders with opportunities to express their views on project risks, impacts, and mitigation measures, and allows the Borrower to consider and respond to them. Meaningful consultation was carried out during the appraisal and is an ongoing process based on the nature of issues, impacts, and opportunities evolving. 4 2.3 Gap Analysis 15. An overview of the national policies, and legal and institutional framework reveals several gaps regarding the mechanism to implement effective stakeholder engagement at the project level. Table 2-1 below summarizes the gap analysis comparing the national legislation and World Bank ESS. Table 2-1: Gap Analysis between the National Legislation and World Bank World Bank National Gaps Gap Filling Options Legislation The Objectives of ESS 10 are: Provisional The national The project will rely on To establish a systematic approach Constitution legislation the relevant provisions to stakeholder engagement that of the has no provision of the WB requirements. will help Borrowers identify Federal for the stakeholders and build and Republic of development of The project will carry out maintain a constructive Somalia. a specific a comprehensive relationship with them, in Article 32 stakeholder consultative process particular project-affected parties. stipulated engagement that every plan with project person has stakeholders as required the right to through public access disclosure meetings, information individual consultations, held by the and public consultations. State. The To assess the level of stakeholder Federal The national The PIU will ensure that interest and support for the Parliament legislation a grievance mechanism project and to enable shall enact a has no for the project is in place, stakeholders’ views to be taken law to provisions that per ESS10 as early as into account in project design and ensure the allow possible in project environmental and social right of citizens to make development to address performance. access to complaints and concerns from affected information. grievances. communities. The project will apply the WB standard and allow anonymous submission of grievances and complaints. To promote and provide means for SEP shall be disclosed to effective and inclusive all stakeholders and engagement with project-affected made available to the parties throughout the project life- 5 World Bank National Gaps Gap Filling Options Legislation cycle on issues that could stakeholders in public potentially affect them. areas, To ensure that appropriate project The national SEP will ensure that all information on environmental and legislation does stakeholders are not social risks and impacts is not have special only identified but that disclosed to stakeholders in a provisions to their information timely, understandable, address the accessible, and appropriate concerns of the disclosure needs are also manner and format including the vulnerable identified to guide vulnerable groups during information disclosure groups the consultation to each stakeholder process. category as appropriate To provide project-affected The national The Project-specific parties with accessible and legislation does GRM will be established inclusive means to raise issues and not have for all stakeholders at grievances, and allow Borrowers provisions each stage of the to respond to and manage such to establish a project, including grievances. Project GRM for all project specific GRM workers 6 3 OBJECTIVES OF THE STAKEHOLDER ENGAGEMENT PLAN 16. This SEP seeks to contribute to a coordinated and continued engagement of all relevant players (including affected persons and interested parties) throughout the project cycle in a manner that is genuine, and culturally appropriate to consultation and information disclosure. The purpose of the SEP is to present a strategy for engaging stakeholders of the project to ensure that they understand the project and can provide their feedback and input to the project. This SEP describes the nature of the anticipated stakeholders as well as their information requirements, timing, and methods of engagement throughout the lifecycle of the project. Specifically, therefore, this stakeholder engagement plan aims to: (i) To identify stakeholders and establish a systematic approach to stakeholder engagement that will help the MoF identify stakeholders at different levels and build and maintain a constructive relationship with them, in particular project-affected parties. (ii) To assess the level of stakeholder interest and support for the project and to enable stakeholders’ views to be taken into account in project design and environmental and social performance. (iii) To promote and provide means for effective and inclusive engagement with project- affected parties including the vulnerable and marginalized groups throughout the project life cycle on issues that could potentially affect them. (iv) To ensure that appropriate project information on environmental and social risks and impacts is disclosed to stakeholders in a timely, understandable, accessible, and appropriate manner and format. (v) To provide project-affected parties with accessible and inclusive means to raise issues and grievances, and allow the borrower to respond to and manage such grievances. (vi) Define roles and responsibilities for the implementation of the SEP. Specifically, the SEP serves the following purposes: i) Stakeholder identification and analysis ii) Planning how the engagement with stakeholders will take place iii) Information disclosure iv) Consultation with stakeholders v) Addressing and responding to grievances vi) Monitoring and reporting on SEP. 17. This SEP will be disclosed by the Ministry of Finance of the Federal Government of Somalia (MoF), the Project Implementing Agency, to the key stakeholders and the Ministry on its website. This SEP describes how the Project will engage internal and external stakeholders during the planning, implementation, monitoring, and evaluation phases of the project. The SEP outlines the following: (i) project description; (ii) previous stakeholder engagement activities; (iii) stakeholder identification and analysis as part of stakeholders mapping; (iv) stakeholder engagement program (activities); (v) resources and responsibilities for 7 implementing stakeholder engagement activities; (vi) GRM; and (vii) monitoring and reporting. This plan is considered to be a ’live’ document and may be amended periodically considering operational changes and experiences during its implementation. 3.1 Approaches to Stakeholder Engagement 18. The project’s Stakeholder Engagement Plan (SEP) has been informed by a set of principles defining its core values underpinning interactions with identified stakeholders. Common principles based on “International Best Practice” include the following: • Commitment is demonstrated when the need to understand, engage and identify the community is recognized and acted upon early in the process; • Integrity occurs when engagement is conducted in a manner that fosters mutual respect and trust; • Respect is created when the rights, cultural beliefs, values, and interests of stakeholders and affected communities are recognized; • Transparency is demonstrated when community concerns are responded to in a timely, open, and effective manner; • Inclusiveness is achieved when broad participation is encouraged and supported by appropriate participation opportunities; • Trust is achieved through open and meaningful dialogue that respects and upholds the community’s beliefs, values, and opinions. 8 4 PROJECT DEVELOPMENT OBJECTIVE DESCRIPTION AND COMPONENTS 4.1 Project Development Objective 19. The project development objectives are to enhance pastoralists' access to financial services for drought risk mitigation, include them in the value chains, and facilitate the livestock trade in the Horn of Africa. 4.2 Project Description 20. The DRIVE project will support the provision of financial de-risking in anticipation of drought (i.e., insurance and financial services) for the main asset of pastoralists, livestock, to allow them to invest in their herds. It will better connect pastoral production groups with markets, support trade infrastructure for cross-border and small-scale trade, and strengthen capacity to meet international standards. This will enable pastoral production groups to extract greater value from livestock-rearing activities. The main beneficiaries will be pastoral production groups in the Horn of Africa (HoA) that have the capacity to undertake commercial activities and move up the value chain. 4.3 Project Components 21. Component 1: De-Risking and Finance (US$30 million): this component will de-risk pastoral groups from drought risk with a package of financial services that facilitate their connections to markets. The proposed de-risking will scale up financial protection for pastoralists through a cost-effective package of financial products and services, including insurance, savings, and (contingent) credit. To meet the needs of pastoralists and provide cost-effective protection, the best financial products would be a mix of insurance and banking (credit and savings) products. The component will provide premium support to ensure the affordability of insurance, but beneficiaries will be expected to contribute to ensure sustainability and attract private sector investment. The insurance and financial services will be delivered by commercial/private sector financial institutions as is currently the case in existing drought insurance projects in Kenya (Kenya Livestock Insurance Program) and Ethiopia (Satellite Index Insurance for Pastoralists).1 22. Component 1 will target pastoral production groups. The rationale is that when groups see the benefit of insurance to stabilize their production levels in case of droughts, they will be more inclined to contribute toward the cost of the insurance. Increasing financial literacy and awareness of livestock index insurance for beneficiaries will therefore be a key component of 1 For further reference, file:///C:/Users/wb342189/Downloads/BuildingFinancialResilienceAfrica.pdf and https://www.wfp.org/publications/ethiopia-satellite-index-insurance-pastoralists-2017-2019-impact- evaluation 9 the program. Monitoring and Evaluation (M&E) will also be embedded into this component to ensure that the appropriate groups benefit from the appropriate financial products and that the products, distribution channels, and delivery mechanisms are continuously adapted to meet the needs of the target pastoral production groups. In addition, the component will target groups that are already supported by other development partners to be more productive, increase their accounting and financial literacy, and structure their activities. This will increase the impact of the component. 23. Component 2: Livestock Value Chains and Trade Facilitation (US$40 million): Component 2 intends to connect pastoralists better to markets, by upgrading the livestock value chains and facilitating trade. The targeted beneficiaries are pastoralists who already have some connections to markets but derive limited value from their livestock-rearing activities. The production groups who benefit from component 1 would be linked to investment opportunities generated under component 2. The component will also support private investment in the livestock value chains that can lead to higher incomes for pastoral producers. This component is intentionally focused on complementing existing interventions on pastoral production systems, facilitating livestock trade, and mobilization of private investment into the livestock value chains. Three types of intervention are contemplated which will be tailored to the needs of each country: (i) upgrading quality infrastructure; (ii) trade facilitation and trade infrastructure; and (iii) seed capital to attract private investment in the value chains. Somalia will primarily be a beneficiary of technical assistance in upgrading quality infrastructure and seed capital to attract private investments in the value chain. The quality infrastructure upgrading sub-component would support capacity building and equipment to ensure compliance of livestock and livestock products with export standards. This intervention will see the importing countries rely on the checks conducted by the Somalia authorities hence having a positive impact on the prices. They seed capital sub-component would provide seed capital to de-risk private investments into the livestock value chains, focusing on a few demonstration investments to show that sustainable business models can emerge to benefit pastoralists. 24. One key underlying objective of the project is to attract private sector involvement and investment in the livestock value chain, to increase the competitiveness of livestock rearing activities. In doing so, the intent is to give a bigger say to pastoralists in the value chains. For Component 1, the project will mobilize the capital of insurance companies for the provision of drought insurance; for Component 2, the project aims to mobilize private investment in the livestock value chains or facilitate it with select public investments. 25. This component will be closely coordinated with the International Finance Corporation (IFC). IFC ongoing or upcoming advisory programs in Ethiopia, Kenya, and Somalia will inform the identification of activities required to attract private sector investment. 26. Component 1 will be implemented by ZEP RE (PTA Reinsurance Co.), while Component 2 in Somalia will be implemented by an existing PIU under the SCALE-UP project within the MoF. 10 5 SUMMARY OF PREVIOUS STAKEHOLDER ENGAGEMENT UNDER THE PROJECT 27. A significant amount of stakeholder engagement has already occurred, which has enabled mapping stakeholders in several categories (Refer to Annex I): (i) Direct beneficiaries: pastoral groups in Somalia, composed of the vulnerable pastoralists, that are organized into commercially viable groups and have the potential to engage in commercial activities with the support of the project. (ii) Indirect beneficiaries: actors in the livestock value chains in Somalia including, but not limited to, traders, collectors, quarantine, processors, exporters, transporters, abattoir, and financial institutions that have an interest in providing financial services to pastoral groups. (iii) Public interested parties: ministries, sub-national governments, parastatals, and public agencies that have an interest in the implementation of the project. (iv) Development partners: the DRIVE intends to work where other development partners are already active in organizing pastoralists into production groups, to ensure greater impact. 28. The design and priorities of the DRIVE project were discussed in 2020 and involved important stakeholders including representatives of the Ministries of Finance, Ministry of Commerce and Industry, Ministry of livestock and Fisheries, and local groups. Engagements and consultation on the project design and the planned activities and implementation arrangements have been done with key institutional stakeholders including the relevant Government and implementing agencies. 29. A key stakeholder engagement meeting was held on 28 and 29 November 2021 from 9:00 am – 4:00 pm at Jazeera Hotel Mogadishu. The meeting was in person with a virtual link for the technical team who could not be physically present. Prior to the meeting, project documents including the Project Appraisal Document, Draft SEP and project PowerPoint presentation were shared with the stakeholders. The meeting sessions and focus group interactions (women, disabled, etc.) were all used in both English and Somali languages. 30. Key highlights of the meeting were: • Livestock export is key to Somalia's economy, more than half of the population depends on livestock, there is a need to improve the livestock value chain and provide financial assistance to the pastoralists, and this project should immediately be implemented to respond to the climate shock. • The project shall improve the export of livestock and livestock products by connecting to the international markets. • The project is a useful solution for the drought and other natural disasters that repeatedly affect pastoralists, it also lifts the living standard of those beneficiaries. • Security is the major obstacle or impediment to the success of the project due to the lack of strong government presence in all regions of Somalia. • Some of the key challenges include a lack of human capital and experts, and collaboration between stakeholders, including national and sub-national institutions. 11 • There is a need for continuous stakeholder engagement especially reaching religious and traditional leaders to create an understandable environment by using social mobilizers to make outreach to the remote villages as well. Detailed stakeholder report and a list of participants are provided under Annex II and Annex III of SEP. 31. A Social Assessment was carried out in November and December 2021 by the International Livestock Research Institute. During the assessment, key informant interviews and discussions with stakeholders were held in Nugaal, Mudug, Bari, Karkaar, Sanaag, Hasbahale, Maraya , Daawad , dhiganle, Haylan, Sool, and Cayn regions. Other stakeholders that were consulted included elders, women, and veterinarian professionals. The findings show that poverty rates are high in Somalia and concentrated in rural areas (where most pastoralists and agro-pastoralists reside) and among internally displaced persons (IDPs). The dependency ratio is highest in these areas and these populations are the most vulnerable to drought risks. The DRIVE projects offer a huge opportunity to improve livelihoods and increase resilience in Somalia. Specifically, potential positive impacts include empowering women, given the intra-household dynamics, by strengthening the livestock value chains and increasing access to financial services; addressing conflicts and improving the quality of livestock by supporting investment in fodder production, and promoting livestock trade both domestic and exports through investment in improved market and road infrastructure. Care shall also be taken to ensure IDPs, who tend to be marginalized and excluded from financial and other services are not left out. This is important, especially because there are current policy efforts both nationally and regionally in IGAD to protect the rights of the IDPs in Somalia. 12 6 STAKEHOLDERS IDENTIFICATION AND ANALYSIS 32. For this SEP, “Stakeholder” refers to individuals, groups, or other entities who: (i) are affected or likely to be affected by the project (project-affected parties). For instance, pastoralists production groups targeted under Component 1 or parties whose operations are financed under Component 2; and (ii) may have an interest in the project (other interested parties). 33. Stakeholders may also include project-affected parties who, because of their particular circumstances, may be disadvantaged or vulnerable (Vulnerable/Marginalized Individuals or Groups – VMIG). They need to be identified to ensure that they are not excluded from the opportunity offered by the project or their plight is exacerbated by the project activities. 34. This section identifies key stakeholders that will be informed and consulted about the Project during preparation. The key stakeholders for Project preparation activities include, but not be limited to, the following: 6.1 Project affected Parties 35. Under Component 1 the main project-affected parties include the following: • Pastoral groups and communities in (Arid and Semi-Arid Lands) ASALs2 • Village Savings and Loan Associations (VSLAs) supported under the Somalia Resilience Program (SomReP) and Building Opportunities for Resilience in the Horn of Africa (Boresha) and • Other actors engaged in the livestock value chain from production, marketing, and processing of livestock products and services. 36. Component 2 for Somalia involves technical assistance to the government and the beneficiaries are government institutions and support private investment in the livestock value chains and help the pastoral groups and communities attain a certain level of commercialization. 6.2 Other Interested Parties National level: Somalia Ministry of Commerce and Industry • Somalia Ministry of Livestock, Forestry, and Range • Central Bank of Somalia • Somaliland Ministry of Trade • Somaliland Bureau of Standards. 2 A consultancy is being carried out to identify potential pastoral beneficiary groups in Ethiopia, Kenya, and Somalia. The outcome of this consultation will inform the guid ance on SEP prepared in coordination with the implementing agencies. 13 Local-level: • Livestock ministry at the FMS level. State and Non-state: • Somalia Chamber of Commerce • Somaliland Chamber of Commerce • Somalia Bureau of Standards (SBS) • Somaliland Quality Control Commission (SQCC) • Somali Microfinance Institution • First Somali Takaful and Re-Takaful (FISO) • SOMEAT • Mogadishu Port and Berbera Port Authorities • TAG Dairy • Urbuntu-Agri • HoA National Advisers to Focal Points • Development partners and international organizations, • Commercial Banks and MFIs: Galaxy International Bank, • Local (Re)insurers, • Mobile network providers 6.3 Vulnerable Groups (Female / Child Headed households) 37. The Project will also ensure appropriate measures are in place to ensure that information is available in Somali. VMIG within the communities affected by the project will be identified and consulted through dedicated means, as appropriate. 38. The PIU will ensure members of these vulnerable or disadvantaged groups are participating effectively and meaningfully in consultative processes and that their voices are not ignored. This may require specific measures and assistance to afford opportunities for meetings with vulnerable groups in addition to general community consultations. For example, women-only consultations will be held. Similarly, separate meetings may be held with young people, persons with disabilities, minority groups, and elderly and illiterate groups. Further, it is important to rely on other consultation methods as well, which do not require physical participation in meetings, such as social media, SMS, or radio broadcasting, to ensure that groups that cannot physically be present at meetings can participate, especially during the pandemic. Because of promoting gender equality, it is most important to engage women’s groups on an ongoing basis throughout the lifetime of the project. Women voicing their concerns and contributing to the decision-making process on issues such as community infrastructure should be encouraged, especially in various fora that predominantly consist of men. The PIU is similarly encouraged to deploy female staff, in particular where staff interface with women community members. 14 39. The Communication method and medium will include culturally appropriate engagement processes for information campaigns. The Grievance Mechanism (GM) will be culturally appropriate and accessible for IPs, considering their customary dispute settlement mechanism. This will include targeted meaningful consultation, including identification and involvement of communities and their representative bodies and organizations; culturally appropriate engagement processes; providing sufficient time for decision-making processes; and allowing their effective participation in the design of project activities or mitigation measures that could affect them either positively or negatively. 15 7 STAKEHOLDER ENGAGEMENT PROGRAM 7.1 Purpose and Timing of Stakeholder Engagement Program 41. The purpose of the SEP is to present a strategy for engaging stakeholders of the project to ensure that they understand the project and can provide their feedback and input to the project. This SEP describes the nature of the anticipated stakeholders as well as their information requirements, timing, and methods of engagement throughout the lifecycle of the project. 42. During the project preparation phase, the MoF will engage stakeholders as early as possible and will continue the engagement throughout the implementation of the project preparation activities, particularly during surveys and baseline data collection, and preparation of the Environmental and Social Management Framework (ESMF), Gender-Based Violence (GBV) Assessment, and project SEP. This process will continue under the Project, starting from the planning, mobilization, and implementation stages, and until the Project is eventually closed. At this stage, the decisions on public meetings, locations, and timing of meetings have not yet been made. The stakeholders will be notified before and during the implementation of the project preparation activities. However, the nature and frequency of follow-up consultations will differ depending on the project components and activities in line with the ESCP. 7.2 Information to be Disclosed 43. MoF will disclose project information to allow stakeholders to understand the risks and impacts of the project, and potential opportunities. MoF will provide stakeholders with access to the following information, as early as possible before the Bank proceeds to project appraisal, and in a timeframe that enables meaningful consultations with stakeholders on project design: (i) The purpose, nature, and scale of the project; (ii) The duration of proposed project activities; (iii) Potential risks and impacts of the project on local communities, and the proposals for mitigating these, highlighting potential risks and impacts that might disproportionately affect VMIG and describing the differentiated measures taken to avoid and minimize these; (iv) The proposed stakeholder engagement process highlights how stakeholders can participate; (v) The time and venue of any proposed public consultation meetings, and the process by which meetings will be notified, summarized, and reported; and (vi) The process and means by which grievances can be raised and will be addressed. 44. Specific objectives of information disclosure for each level of consultation have been highlighted in Table 7-1 below with a summary of the issues. 16 Table 7-1: Engagement Activities during Project Preparation Engagement Objective Targeted Key issues raised Time Activity Stakeholders National Collect views on the Representatives Project design September– stakeholder design and of national Identification of December consultations implementation Government and potential 2021 arrangements of the line ministries beneficiaries. project, Project fiduciary environmental and processes. social risks, mitigation Environment and measures, grievance social risk redress mechanisms, management, capacity and SEP building The federal Collect views on the Representatives Project design September– Member design and of federal Identification of December States implementation governments potential 2021 arrangements of the and line state beneficiaries. project, ministries Project fiduciary environmental and processes. social risks, mitigation Environment and measures, grievance social risk redress mechanisms, management, capacity and SEP building District and Collect views on the District / Local Identification of September– Local design of the project, government potential beneficiaries December Government environmental and officials 2021 Stakeholder social risks, mitigation consultations measures, grievance redress mechanisms, and SEP Community- Collect views on Community Project design September – level lessons learned in the members, and Social and December Stakeholder previous or related extension environmental risks 2021 consultations project, challenges, workers and impacts. social risks, and their including Social Assessment. mitigation measures vulnerable Gender-based groups violence prevalence representatives rates in the community. Gender assessment. 45. Stakeholder information disclosure needs vary between different groups depending on principle occupation and locality. These specific needs have been shown in Table 7-2 below. However, through further consultations and engagements with the community, more stakeholder needs will be identified, and the table updated accordingly. 17 Table 7-2: Summary of Stakeholder Needs for Information Disclosure Stakeholder Group Key Language Preferred Specific needs characteristics needs notification means (accessibility, Large (email, phone, print, child care, radio, letter) daytime meetings) National-level NA English and E-mail, website, and Daytime meetings institutions Somali Radio. Federal-level NA English and Meetings, email, Daytime meetings government Somali radio officials, assembly members, and others Non-state national NA English or E-mail, meetings, Day-time meetings actors Somali social media Traditional leaders The mix of Somali Community Graphic and semi-illiterate meetings with workshops on the and literate translators, & radio, process social gathering areas, mosques, and clan meetings. VMIG A mix of semi- Somali Community Graphic and illiterate and meetings with the workshops on the literate translator, & radio process 46. A precautionary approach will be taken to the consultation process to prevent infection and/or contagion, given the highly infectious nature of COVID-19. Table 7-2above has highlighted some of the considerations for selecting channels of communication, in light of the current COVID-19 situation. Table 7-3 below lists the identified stakeholders and their influence as well as interest in the project: 18 Table 7-3: Stakeholders and Their Influence on the Project Stakeholder Stakeholder Group Magnitude of Impact/Influence Issue / Area of concern Category Livestock value Livestock value chains Impact of Project on Stakeholders: High Level of • Increasing financial literacy and chains Interest awareness of livestock index insurance for beneficiaries Influence of Stakeholders on Project: High Level of • Community members to benefit Interest from the appropriate financial products and that the products, distribution channels, and delivery mechanisms for the pastoral production groups, • The financial protection for pastoralist's products and services, including insurance, savings, and (contingent) credit. • Supply of labor • Supply of materials Livestock value chains Impact of Project on Stakeholders: High Level of • Upgrading of the quality Interest infrastructures, Influence of Stakeholders on Project: High Level of • Trade facilitation and trade Interest infrastructure; and • Seed capital for the private investment in the value chains. Insurance, Current players in the financial Impact of Project on Stakeholders: High Level of • The Insurance, savings, and credit savings, and services market Interest service provisions, credit Service Influence of Stakeholders on Project: High Level of • The current players will share with Providers Interest the new players the experience encountered during the time of operation 19 Stakeholder Stakeholder Group Magnitude of Impact/Influence Issue / Area of concern Category Government Ministry of Finance Impact of Project on Stakeholder: High Level of • Boosting development and Bodies Interest Stakeholder on Project: High Level of industrialization through the Interest additional investment in the livestock value chains, • Disbursement of project money. Somalia Ministry of Commerce Impact of Project on Stakeholders: High Level of • Technical assistance on quality and Industry Interest infrastructure in the livestock value Influence of Stakeholders on Project: High Level of chain, Interest • Seed Capital for investment, Somalia Ministry of Livestock Impact of Project on Stakeholders: High Level of • Investment in Livestock Value Chain, Interest • Direct investment in livestock Influence of Stakeholders on Project: High Level of management and feeding Interest Somalia Central Bank Impact of Project on Stakeholder: High Level of • Seed Capital Flows Interest Stakeholder on Project: High Level of Interest Somaliland Ministry of Trade Impact of Project on Stakeholders: High Level of • Technical assistance on quality Interest infrastructure in the livestock value Influence of Stakeholders on Project: High Level of chain, Interest • Seed Capital for investment, Somaliland Bureau of Standards Impact of Project on Stakeholders: High Level of • Quality of the products from the Interest Livestock Value Chain Investments Influence of Stakeholders on Project: High Level of Interest Directorate of the Environment Impact of Project on Stakeholders: Low Level of • Nature and magnitude of the Value Interest Chain Investments and their Influence of Stakeholders on Project: High Level of environmental and social risks and Interest, impacts, 20 Stakeholder Stakeholder Group Magnitude of Impact/Influence Issue / Area of concern Category Occupational health and safety Impact of Project on Stakeholders: High Level of • Attention shall be paid to the safety department Interest concerns related to OHS risks and Influence of Stakeholders on Project: High Level of hazards, Interest Ministry of Interior Impact of Project on Stakeholders: Low Level of • Security concerns in the project Interest areas Influence of Stakeholders on Project: High Level of Interest Ministry of Labour Impact of Project on Stakeholders: Low Level of • Workers’ welfare is a critical issue Interest for the ministry of labor Influence of Stakeholders on Project: High Level of Interest Institutional World Bank, SIDA, DFID, EU & Impact of Project on Stakeholders: Low Level of • Implementation and monitoring of Stakeholders AfDB. Interest the ES Safeguards requirements and donor Influence of Stakeholders on Project: High Level of • M & E for the deliverables and partners active Interest milestones in the Livestock sector as well as those relevant for E&S issues Regional The federal Member States Impact of Project on Stakeholders: Low Level of • Security concerns in the project Government Interest areas. Influence of Stakeholders on Project: High Level of • E&S Safeguards issues, Interest • Project implementation status 21 7.3 Proposed Strategy for Information Disclosure 47. The SEP will be disclosed on the Bank and MoF external websites respectively. Furthermore, information before and during the project implementation will be made available through short reports and meetings with translations in the Somali language in the rural communities where project activities will be implemented. Information will also be transmitted through local community radio stations in the Somali language. 48. The MoF will be responsible for the project launch and disclosure of the SEP and Grievance Mechanism (GM) so that the community is made aware of channels to voice their complaints. These meetings will be in the form of Focus Group Discussions; all views and feedback will be recorded. Local authorities are key in the mobilization of the community, it will, therefore, be important to hold meetings with them once issues are emerging in the community. The ESMF and project SEP will be disclosed by national laws while meeting the WBG’s ESF requirements. The instruments will be publicly disclosed on the MoF website, while hard copies will be available at the MoFfor interested parties to access, review, and provide comments as necessary. 7.4 Proposed Strategy for Consultation 49. During the Project Preparation, the first step will be to establish protocols for consultation during the life of the Project Preparation activities and the main project, under the development of the instruments project SEP. Stakeholders will be asked to provide feedback on the appropriate protocol for consultation. This will be captured and validated during the stakeholders' meeting held on November 27-28, 2021 at Jazeera Hotel in Mogadishu. The validated protocols will guide consultations throughout the project. 50. Consultations with vulnerable households/stakeholders’ will take place under the Project preparation in the development of the project SEP. Otherwise, it will be carried out through the main project’s SEP. 51. The information will be disclosed in the Somali language and in a manner that is socially accessible and culturally appropriate, taking into account any specific needs of groups that may be differentially or disproportionately affected by the project or groups of the population with specific information needs (such as disability, literacy, gender, mobility, or accessibility) as revealed on Table 7-4: 22 Table 7-4: Engagement Activities and Disclosure during Project Preparation & Implementation Target Stakeholders Aspects to be Topic (s) of Engagement Method (s) used Location/frequency Responsibilities considered All stakeholders • Employment • Overall project design, Public consultations, Prior to project • PIUs opportunities, • Anticipated Individual meetings, appraisal at • Stakeholder environmental and through community accessible public concerns on the social impacts and action groups, space entire project proposed mitigation Emails prior to rolling measures in ESMF out; (including gender action • plan), SEP, and LMP. Project-Affected • Impacts on - More site-specific Public meetings, Prior to the start of • (Environment Persons include local community environmental and individual meetings any project activities. al and Social communities, livelihoods, social impacts and during preparation and Officers); community members • Benefits to both mitigation measures in implementation of Monthly/quarterly • Ministry, (Vulnerable businesses and ESMP (including GBV instruments meetings in affected Federal, households), and household Action Plan), LMP, and municipalities and District, other parties that incomes, SEP. Disclosure of written villages; Municipal may be subject to • Inclusion - Awareness-raising on information - Brochures, line direct impacts from mechanism for the GRM process posters, flyers, ( in local The GRM is departments the Project activities, the vulnerable - ESMF, ESMP, SEP language), websites maintained /staff (E.g., which include the disclosures. (Social Media throughout the grievance impact on land-based - Ways to expand and Communication) project life staff) livelihood, access, access inclusive Face-to-face meetings; assets, businesses as engagement with social gatherings, and well as Private Sector vulnerable separate meetings (SMEs); - Meaningful community specifically for affected engagement in the vulnerable groups and project decisions individuals; Grievance mechanism - Ways of overcoming Communication social stigma 23 Target Stakeholders Aspects to be Topic (s) of Engagement Method (s) used Location/frequency Responsibilities considered Affected • Employment - Selection criteria and Group meetings with the Prior to the start of • PIU communities- People opportunities and ToR for employment host community and project activities who will benefit from related opportunities; support groups to employment requirements, - Environmental laws and engage vulnerable opportunities • Legal compliance regulations; groups; Focus group of the project, - Project scope, rationale, meetings; • The extent of the and E&S principles project (including - Grievance mechanism the potential process and appropriate beneficiaries) reporting methods • Legal - Discrimination at the requirement. workplace. Other Interested • Stakeholder - Ways to outreach to Individual meetings; Prior to the start of • PIU Parties – Community sensitization on vulnerable groups and focus group meetings; project activities groups and actors the potential address their concerns Emails; public gatherings engaged in the benefits/ impacts and interest and local radio livestock value chain as well as the - Ways to include women from production, enhancement/ groups in project marketing, and mitigation implementation. processing of measures. - livestock products • Increased and services participation Other Interested • Input in the - Technical details on Official/Public meetings, As needed (and • PIU; Parties - External design of the project design, workshops; Social Media continued • Ministries project - Compliance with Communication; throughout the (Federal/FMS) • Project national regulations and Disclosure of written project life) Academic compliance with collaboration with information – Reports, institutions; the legal relevant programs, Brochures, posters, Local Government provisions flyers, website; 24 Target Stakeholders Aspects to be Topic (s) of Engagement Method (s) used Location/frequency Responsibilities considered Units; • Disputes or - Identification of Information desks - In General public; concerns raised vulnerable groups of Municipalities and HQ; Women by the various people relevant to the Grievance mechanism organizations; Local stakeholders project Compliance commercial banks where the project with legislation and and Media is to be regulations, undertaken - GM Process Affected • Stakeholder - Satisfaction with End-line stakeholder • PIUs communities - concerns after engagement activities survey on project Monthly/quarterly People who are project and GRM process; impact, meetings physically and commencement. , - Monitoring and Communication economically evaluation of project Public meetings, through mass/social affected, those benefit and training/workshops, and media (as needed) residing in project environmental and individual outreach to areas social performance affected communities - Disclosure of written information through brochures- Information board – At the beginning and at the end of the project site; • Update on the Reporting back to Public workshop Following the PIUs All stakeholders project success stakeholders on the Media releases and/or completion of the and challenges as outcome of the monitoring newsletters via email project well as document and evaluation of the Project bulletins lessons learned project 25 Target Stakeholders Aspects to be Topic (s) of Engagement Method (s) used Location/frequency Responsibilities considered Vulnerable Groups • Job opportunities - Employment Focus group discussions, In line with the SEP PIUs disabled, children / available during opportunities public meetings, village and on a need basis women-headed the project - Grievance mechanism social gatherings, and and throughout the households, minority lifetime, process; local radio stations. project life. clans, and groups, • The GMs process, - Project benefits persons in remote • The extent of - Inclusion methods and rural areas, or areas inclusion or - Accessibility; characterized by exclusion - social and violence that are • Complaints raised environmental risks bereft of social associated with the services and project and mitigation amenities; nomadic measures in ESMF, LMP, pastoralist and this SEP communities; IDPs, elderly persons, Illiterate persons, and returnees and their families. 26 7.5 Inclusion Plan 52. The project will give special consideration to vulnerable and marginalized groups. These include: i. Minority clans and groups; ii. Internally displaced persons; iii. Those who live in remote rural areas or areas characterized by violence that are bereft of social services and amenities; iv. Nomadic pastoralist communities. v. Persons living with disabilities; vi. Female-headed families; vii. Elderly persons; viii. Illiterate persons; ix. Returnees and their families; x. The screening process will confirm any presence of Indigenous people in the various project activities The Project Implementation Unit (PIU) under the SCALE-UP project within the Ministry of Finance will be responsible for the implementation and monitoring of the inclusion plan. 53. There are social, economic, and physical barriers that prevent vulnerable and marginalized individuals and groups from participating in projects, which include lack of financial literacy, inaccessibility of meeting venues, social stigma, lack of awareness of the project benefits, and/or poor consultation. For instance, people living with disabilities are often not effectively engaged in consultations due to a lack of access to social stigma, and cultural beliefs that they are not able to participate or benefit from economic activities or have limited productive roles in society. In this regard, the project will deploy viable strategies to engage target communities and other stakeholders to overcome social stigma and encourage inclusion. 54. The project will take special measures to ensure that members of disadvantaged and marginalized groups have equal opportunities to project benefits. This will include ensuring that they are involved in consultations on project design, ensuring the meeting and consultation points are accessible to people with physical disabilities, and project implementers are guided on their responsibilities to provide services without discrimination. Also, discussions should be conducted in a simplified manner to ensure the illiterate and people with no or limited financial literacy understand the project and its components. In addition, efforts will be made to promote diversity in staffing (see Labor-Management Procedures (LMP) and Environment and Social Management Framework (ESMF). 55. The participation of disadvantaged and marginalized groups in the selection, design, and implementation of project activities will largely determine the extent to which the Inclusion Plan will be achieved. Where adverse impacts are likely, the PIU will undertake prior and informed consultations with the likely affected communities/ groups and those who work 27 with and/or are knowledgeable of the local development issues and concerns. The primary objectives will be to: • Understand the operational structures in the respective communities; • Seek their input/feedback to avoid or minimize the potential adverse impacts associated with the planned interventions; • Identify culturally appropriate impact mitigation measures; and • Assess and adopt measures that could be promoted to complement the measures required to mitigate the adverse impacts 56. Consultations will be carried out broadly in two stages. First, prior to commencement of any project activities. The PIU will arrange for consultations with community leaders, and representatives of disadvantaged and marginalized groups about the need for, and the probable positive and negative impacts associated with the project activities. Secondly, after the initial roll-out of the project activities, a rapid assessment will be conducted to ascertain how the disadvantaged and vulnerable groups, in general, perceive the interventions and gather any inputs/feedback they might offer for better outcomes, which would inform the project delivery 57. The following issues will be addressed during the implementation stage of the project: i. Provision of an effective mechanism for monitoring the implementation of the Inclusion Plan; ii. Development of accountability mechanisms to ensure the planned benefits of the project are equally received by disadvantaged and vulnerable individuals and groups; iii. Involve suitably experienced CBOs/NGOs to address the disadvantaged and vulnerable peoples through developing and implementing action plans; iv. Ensuring appropriate budgetary allocation of resources for the Inclusion Plan; 28 8 RESOURCES AND RESPONSIBILITIES FOR SEP IMPLEMENTING ACTIVITIES 8.1 Resources 58. Both human and financial resources are required for the successful preparation and implementation of the SEP. The Project Implementation Unit (PIU) will hire competent and qualified Environmental and Social Development Specialists who will be responsible for ensuring the effective implementation of the SEP. The ToRs for these specialists were drafted during the Project Preparation, and the recruitment will be finalized once the Project is declared effective. The project has set aside funds to ensure that the planned stakeholder engagement activities are implemented and monitored effectively. 8.2 Management Functions and Responsibilities 59. Overall project implementation and coordination will be led by the Federal Government of Somalia (FGS) through the Ministry of Finance in collaboration with the Ministry of Livestock, Forestry and Range, Ministry of Commerce, Somalia Bureau of Standards, Central Bank of Somalia, and participating the Federal Member States on relevant activities. The project will initially use the existing Project Implementation Unit (PIU) under the SCALE-UP project within the Ministry of Finance to coordinate the project’s preparation and implementation. This unit will be responsible for the fiduciary responsibilities, environmental and social safeguards, and the overall project implementation and coordination with stakeholders. The PIU will be responsible for the preparation and implementation of this SEP. The technical line ministries will be responsible for technical inputs and technical implementation of activities relevant to their sectors. Each participating agency will designate a focal point responsible for approving the ToRs, technical quality, and approval of the deliverables for its respective activities. 60. The PIU will provide collaborative management of program activities, decision-making around co-design and co-management of activities including the annual work plan and budget, co-monitor program activities, conducts quarterly progress reviews, make joint decisions on issues about the implementation, and ensure open communication and maximum accountability. As an activity under the Project preparation, the PIU will hire qualified Environmental and Social Safeguard Specialists to oversee the implementation of the SEP, monitoring and evaluating the progress. He/she will share the monthly reports with the project coordinator and be incorporated into the periodic reports to the World Bank. 61. The PIU will be guided by the Steering Committee(PSC) composed of all the project beneficiary ministries. There will be a review to assess the implementation arrangement during each Steering Committee meeting and assess whether the procurement and E&S management should transition to another entity, as long as such entity is assessed as suitable by the World Bank. 29 62. The social safeguards officer within the PIU will ensure that the SEP is appropriately implemented, monitored, and evaluated. He/she will share the monthly reports with the PSC and the quarterly reports with the World Bank. 63. During project implementation, the SEP will be periodically revised and updated by the PIU as necessary to ensure that the information and the methods of engagement remain appropriate and effective concerning the project context and spread of COVID-19. Any major changes to the project-related activities and their schedule will be duly reflected in the updated SEP. Monthly/quarterly summaries and internal reports on public grievances, inquiries, and related incidents, together with the status of implementation of associated corrective/preventive actions will be collated by responsible staff and referred to the senior management of the project. 64. The monthly/quarterly summaries will provide a mechanism for assessing both the number and the nature of complaints and requests for information, along with the project’s ability to address those in a timely and effective manner. 8.2.1 Responsibilities 65. The responsible persons (Environment and Social Safeguards, Coordinator, and other technical teams) within the PIU will coordinate the disclosure of Project information; public consultation activities, and the management of the Grievance Mechanism. 66. Communications specialist(s) will be hired to manage the disclosure of information and media content for disclosure. 67. E & S specialists and GBV specialists (hired under PIU) will oversee the implementation of environmental and social aspects as well as the GBV/SEAH and GRM issues, and inclusion plan throughout project implementation. 68. Community Liaison Officers will be hired by the various contractors to follow up on affected communities' social concerns with clear communication between the affected communities and the PIUs. 69. Supervising Consultant: Supervision and manage all the sites concerning the administration of the project activities including E&S management compliance-related issues. 70. Department of Gender: supervise the gender-related issues during project implementation with emphasis to mitigate the vulnerable affected communities especially women, orphans, child and female-headed households, IDPs, and minority groups. 71. Department of Labour: supervise labor-related issues especially labor influx, and labor- related conflict including employment of the vulnerable and marginalized. Labor inspectors will play a key role during the project implementation. 72. Local Municipalities: These will be part of the GRM and also the local leadership of the areas where the project will be undertaken will have representation on the Grievance Redress Committees (GRCs). 30 8.3 Estimated Budget 73. The Project Implementation Unit (PIU) under the SCALE-UP project within the Ministry of Finance will have the responsibility of providing the budget for the SEP implementation. Table 8-1 below shows the indicative budget for implementing the project: Table 8-1: SEP Implementation Budget # Item Main Activities * Yearly Estimated Costs (USD) Year I Year II Year Year Year V Sub-Total III IV 1 SEP Formal meetings 10,000 10,000 10,000 10,000 10,000 50,000 implementation Public meetings 5,000 5,000 5,000 5,000 5,000 25,000 22 Stakeholder Correspondence by 5,000 5,000 5,000 5,000 5,000 25,000 engagements phone/email/Text/ Instant messaging Print media and 5,000 5,000 5,000 5,000 5,000 25,000 TV/radio announcements Focus group 2000 2000 2000 2000 2000 10,000 meetings 3 Activities Focus group, print 3,000 3,000 3,000 3,000 3,000 15,000 related to the media, radio and Inclusion Plan village meetings 44 Grievance Formal GRM 3,000 3,000 3,000 3,000 3,000 15,000 Redress Committee Mechanisms meetings 55 General Workshops, food, 10,000 10,000 10,000 10,000 10,000 50,000 Facilitation transport, publications, communication material 66 Third Party M&E 10,000 10,000 10,000 10,000 10,000 50,000 1. Grant Total 265,000 USD * The indicative figures for the budget will be availed when the SEP is updated in the future. 31 9 GRIEVANCE REDRESS MECHANISM 74. A Grievance Redress Mechanism (GRM) will be in place throughout the project cycle. The GRM will be reviewed during the preparation of the environment and social instruments for the project. This will be prepared before project approval. 75. The main objective of a Grievance Redress Mechanism (GRM) is to assist to resolve complaints and grievances in a timely, effective and efficient, and culturally appropriate manner that satisfies all parties involved including any groups that could be identified during the screening process as indigenous groups. Specifically, it provides a transparent and credible process for fair, effective, and lasting outcomes. It also builds trust and cooperation as an integral component of broader community consultation that facilitates corrective actions. Specifically, the GRM: • Provides affected people with avenues for making a complaint or resolving any dispute that may arise during the implementation of projects; Ensures that appropriate and mutually acceptable redress actions are identified and implemented to the satisfaction of complainants; Verify that complainants are satisfied with outcomes of corrective actions, and Avoids the need to resort to judicial proceedings in the first instance. 76. Complaints may be raised by staff, partners, consultants, members of the community where the program is operating, or members of the general public regarding any aspect of project implementation. Potential complaints include: • Fraud or corruption issues; • exclusion challenges; • Social and environmental impacts; • Payment-related complaints; • Quality of service issues; • Poor use of funds; • Workers' rights; • Gender-Based Violence (GBV) and Sexual Exploitation and Abuse (SEA) and sexual harassment; • Harassment by project security personnel; • Excessive use of force by security personnel, • Forced labor, including human trafficking and use of prison labor; • Child labor; and • Threats to personal or communal safety. 9.1 Description of the GRM 77. Grievances will be handled first at the community level with the intervention of the participation of the GRM focal person. Due to limited resources, the government may outsource the services in collaboration with CBOs and local NGOs. 32 78. A Grievance Committee (GC) will be established at the national level chaired by the Project Coordinator, and the relevant staff will be included as necessary depending on the complaint (procurement, finance, M&E, GBV advisor, E&S, and communication). The social specialists will compile minutes for the meetings and follow up on the grievance resolution process. The GC will meet monthly to review minor complaints, progress on complaints resolution, review the development and effectiveness of the grievance mechanism, and ensure that all staff and civil servants are aware of the system and the project. Immediate meetings will be held in case of significant complaints to be addressed at the PIU level. For serious or severe complaints involving harm to people or those which may pose a risk to the project's reputation, the Project social specialist should immediately inform the head of the PIU, who will inform the World Bank within 48 hours as per the Environmental and Social Incident Reporting (ESIRT) requirements. The GM will include the following steps and indicative timelines. 79. The GM will provide an appeal process if the complainant is not satisfied with the proposed resolution of the complaint. Once all possible means to resolve the complaint have been proposed and if the complainant is still not satisfied then they should be advised of their right to legal recourse. 80. It is important to have multiple and widely known ways to register grievances. Anonymous grievances can be raised and addressed. Several uptake channels under consideration by the project include: Telephone number +252 614783624 MoF Grievance Box MoF PIU Help Desk Email address: piugrms@gmail.com • Letter to Grievance focal points • Complaint form to be lodged via any of the above channels • Walk-ins may register a complaint on a grievance logbook and suggestion boxes. Once a complaint has been received, by any channels, it should be recorded in the complaints logbook or grievance Excel-sheet/grievance database. 33 Figure 9-1: Grievance Redress Flow Chart 81. Survivors of Gender-based Violence or Sexual Exploitation and Abuse are generally encouraged to report all GBV/SEA cases through the dedicated GBV/SEA referral system and complaints resolution mechanism in line with the GBV Prevention and Response Plan and Code of conduct. This will be made explicit in all community awareness sessions, as well as be part of the publicly disclosed information. The GBV/SEA referral system will guarantee that survivors receive all necessary services, including survivor-centered manner, medical, legal, and counseling, and that cases are reported to the police where applicable. 82. If such cases are reported through the Project GRM, the GRM Operator needs to report the case within 24 hours to the PIU, as the PIU is obliged to report any cases of GBV/SEA to the World Bank within 48 hours following an informed agreement by the survivor. Furthermore, cases need to be reported to the PIU, if it concerns a direct worker or a worker from a sub- contractor, NGO partner, or even a community worker following a survivor-centered approach. The Grievance Officer are in charge of monitoring that the courses for contractors regarding the Code of Conduct obligations and awareness-raising activities for the community are in place. The information gathered would be monitored and reported to the PIU and the 34 World Bank. All reporting will limit information to the survivor’s wishes regarding confidentiality and in case the survivor agrees to further report, information will be shared only on a need-to know-base, avoiding all information that may lead to the identification of the survivor and any potential risk of retribution. 9.2 GRM Consultation levels 83. Table 9-1 below provided the details of the stakeholder engagement plan at different project stages including the topic of consultation, the target stakeholders’, methods of engagement, and the responsible entity for implementation: Table 9-1: GRM Consultation Levels Project stage Topic of Target Suggested Method Responsibility consultation Stakeholder Project Design Overall Community-level Community meetings PIU activities stakeholder FMSs and In-person meetings, PIU national-level virtual meetings through ( stakeholder Teams, WebEx, Zoom, meetings Skype), email Preparation Social Would-be affected Formal/informal PIU, project stage individuals assessment, and interviews consultants groups, In-depth Group discussions (social study key informants, of Discussions on specific specialists), risks affected and impacts. NGOs/CBOs, individuals benefits, and structured survey pastoralists groups including gathering quantitative groups and the vulnerable and and qualitative Other marginalized and information knowledgeable other groups listed persons in the inclusion plan Implementation Project Productive groups, In-person meetings, PIU stage Specific community quarterly review. -Consultants ESMPs / and stakeholders, -NGOs/CBOs or ESIAs Federal and FMS GRM focal Stakeholders person, CBO, including the NGOs, PIU vulnerable and Federal marginalized and Designated other groups staffs listed in the inclusion plan 35 Project stage Topic of Target Suggested Method Responsibility consultation Stakeholder Monitoring and Monitoring Disadvantaged Formal participation PIU (social Evaluation and individuals and in review and monitoring specialists) evaluating groups activities -Consultants project -NGOs & CBOs output and objectives. 84. Ideally, workplace grievances include fair and equal opportunity for employment; labor wage rates and delays of payment; disagreement over working conditions; and health and safety concerns in the work environment. Therefore, a grievance mechanism (GM) will be provided for all direct workers, contracted workers, and consultants to raise workplace concerns. The GRM is designed to ensure that grievances and perceived injustices are handled by the project and that the project aids in mitigating general conflict stresses by addressing grievances that occur between people, groups, communities, government actors, and beneficiaries. Aggrieved parties need to be able to refer to institutions, instruments, methods, and processes by which a resolution to a grievance is sought and provided. The GRM, therefore, provides an effective avenue for expressing concerns, providing redress, and allowing for general feedback from community members. 9.3 World Bank Grievance Redress Service (GRS). 85. The World Bank which funds this project provides a forum for grievance redress through its website – Grievance Redress Service (GRS). Through this avenue, complaints can also be reported by logging in, and the World Bank initiates a mediation between the affected communities or other stakeholders and the implementing agencies. The GRS also provides the information sought by the public on the project (The GRS accepts complaints in English or the official language of the country of the person submitting the complaint.) Submissions to the GRS may be sent by: Email: grievances@worldbank.org Fax: +1-202-614-7313 Letter: The World Bank Grievance Redress Service (GRS) MSN MC 10-1018 1818 H St NW Washington, DC 20433, USA 36 10 MONITORING AND REPORTING 86. The Project will establish a Monitoring and Evaluation (M&E) System that is participatory, which will utilize indicators that are sensitive to concerned stakeholders. Furthermore, the project will involve affected parties by gathering their observations to triangulate scientific findings and involve them in participatory discussions of external monitoring and evaluation missions. 10.1 Involvement of Stakeholders in Monitoring Activities 87. The PIU will monitor the SEP per the requirements of the Legal Agreement and the Environmental and Social Commitment Plan (ESCP) including changes resulting from changes in the design of the project or project circumstances. The extent and mode of Stakeholder monitoring concerning environmental and social performance would be proportionate to the potential environmental and social performance risks and impacts of the project and their effect on the various stakeholder interests. 88. The following M&E actions will be undertaken regarding stakeholder interests in line with the environmental and social performance of the project, which will include: i. Conducting stakeholder engagement in a consultative manner, following the SEP, and building upon the channels of communication and engagement as established with stakeholders ii. Collection of feedback from stakeholders on the environment and social performance of the project, and on the implementation of the mitigation measures outlined in the ESCP on a bi-annual basis. iii. Periodic reviews of compliance with requirements of the legal agreement, including the ESCP. 89. Where appropriate, engage stakeholders and third parties such as independent experts, local communities, or non-governmental organizations (NGOs), to complement or verify project stakeholder monitoring information. 90. Where other agencies or third parties would be responsible for managing specific risks and impacts and implementing mitigation measures, the Government would collaborate with such agencies and third parties to establish and monitor such mitigation measures. 91. Figure 1 below shows the schematic flow diagram of the stakeholders' grievances from the receiving of the complaint to resolution with many alternative means of grievance resolution: 10.2 Reporting back to Stakeholder Groups 92. The stakeholder engagement process will aim to support the development of strong, constructive, and responsive relationships among the key Project stakeholders for successful 37 management of the project’s environmental and social risks and preparing stakeholders for the Project. Effective stakeholder engagement between the Government and project stakeholders improves the environment and social sustainability of projects, enhances project acceptance, and makes a significant contribution to successful project design and implementation. 93. All stakeholder engagement meetings will have minutes, which will be stored in the project stakeholder engagement database; this will be to ensure that (i) there are records that can be referred to and that all views raised are taken into consideration, and (ii) commitments made are delivered upon. In addition, the outcomes of the stakeholder engagement activities with comments that have been considered will be reported in the ESCP and monitoring progress reports by all parties. Despite this being for internal use only, it will result in an annual report on stakeholder engagement under the project. 38 11 Annexes 11.1 Annex 1: List of Previous Stakeholder Engagement under the Project Institutions consulted Nature of the institution A. Public Stakeholders Somalia Ministry of Finance Expected Borrower Somalia Ministry of Commerce and Industry The current beneficiary of technical assistance on quality infrastructure Somalia Ministry of Livestock Ministry of Livestock of the federal government of Somalia Somalia Central Bank Central Bank of the Federal Government of Somalia Somaliland Ministry of Trade Ministry of Trade of the Somaliland Region Somaliland Bureau of Standards Quality Infrastructure Agency of Somaliland B. Private Stakeholders ACRE Africa Established agri-insurance products distributor. Recently ZEP Re (Pta Reinsurance Co.) acquired 51% shareholding Agency for Inclusive Insurance Development Insurance agency with interest in developing solutions for design, delivery, and distribution of (AIID) livestock insurance in pastoral regions AgWild Group Consulting enterprise focusing on livestock management, forage improvement, facilities integration Galaxy International Bank A leading bank in Somalia is interested in providing financial services to SMEs, including those involved in the livestock value chain. Working in partnership with Takaful Somalia. Livestock Trade Services Ltd The firm whose mandate is to ensure healthy and wholesome disease- antibiotic & hormone-free livestock & meat to global markets PULA Advisory Insurtech is involved in the design and distribution of agriculture insurance products. Somalia Chamber of Commerce Representing the private sector in Somalia Somaliland Chamber of Commerce Representing the private sector in Somaliland SOMEAT Somalia Meat Company, currently exporting livestock products to the Gulf Takaful Somalia One of the two insurance companies with a strong interest to provide livestock insurance in Somalia. Currently working with local NGOs in piloting livestock insurance in Somalia. C. Development partners and international organizations Africa Development Bank (AfDB) Multilateral Development Finance Institution. Implementing related projects. 39 Institutions consulted Nature of the institution Africa Risk Capacity (ARC) Specialized Agency of the AU that helps African governments to better plan, prepare, and respond to extreme weather events and natural disasters. Africa Trade Insurance (ATI) Pan-African financial institution providing credit and political risk Insurance Products to support African investments and trade to companies, investors & lenders in Africa. Building opportunities for resilience in the Consortium DRC, World Vision, Care International) targeting 350,000 beneficiaries – promotes Horn of Africa (BORESHA) economic development and greater resilience among vulnerable groups. Centre for Disaster Protection (CDP) Centre with the mandate to find better ways to stop disasters devastating lives and economies, by supporting countries to better manage disaster risk. Drought Index-insurance for Resilience in the DIRISHA study taking stock of the experience of index-based livestock insurance programs in the Sahel and Horn of Africa (DIRISHA) region, and assessing the operational and technical feasibility and options for regional implementation. European Union (EU) EU Commission, and teams based in Somalia, Kenya, Ethiopia, Djibouti Food and Aid Organization (FAO) UN specialized agency that leads international efforts to defeat hunger. Discussed FAO livestock value chain work. Foreign, Commonwealth & Development Department of the UK government responsible for foreign affairs. Discussed potential institutions for Office (FCDO) regional implementation arrangement. International Fund for Agricultural UN agency financing agricultural development projects, primarily for food production Development (IFAD) International Livestock Research Institute Research centre designed to reduce poverty in developing countries through research for efficient, (ILRI) safe, and sustainable use of livestock—ensuring better lives through livestock. Intergovernmental Authority on Regional eight-country trade bloc in the HoA. Discussed the DRIVE concept and the potential role of Development (IGAD) regional bodies. IGAD Centre For Pastoral Areas and The mission is to complement the efforts of IGAD member states to sustainably generate wealth, Livestock Development (ICPALD) employment and act as a regional policy reference institution for livestock and drylands KFW German Development institution. Discussed potential institutions for regional implementation. The Somalia Resilience Program (SOMREP) Somali Resilience Program, group of NGOs supporting resilience building United Nations Industrial Development UN Industrial and Development Corporation Organization (UNIDO) World Food Program (WFP) Food-assistance branch of the UN. Supporting index-based livestock insurance in Somali and Afar region of Ethiopia. 40 Institutions consulted Nature of the institution ZEP Re (Pta Reinsurance Co.) COMESA company promotes trade in insurance and reinsurance through the creation of capacity, provision of technical services, and re-investment of premium funds within the region. 41 11.2 ANNEX II: STAKEHOLDER ENGAGEMENT REPORT DE-RISKING, INCLUSION, AND VALUE ENHANCEMENT OF PASTORAL ECONOMIES PROJECT (DRIVE) STAKEHOLDER ENGAGEMENT REPORT DECEMBER 2021 42 Project Description The Horn of Africa De-Risking, Inclusion and Value Enhancement of Pastoral Economies (DRIVE) project is a project with a mission to support the provision of financial de-risking (insurance) for pastoralist livestock in anticipation of droughts. The project will also provide value addition through connecting pastoral production groups with markets, support to trade infrastructure for cross-border and small-scale trade, and strengthening capacity to meet international trading standards. This will enable pastoral production groups to extract greater value from livestock-rearing activities. The main beneficiaries are pastoral production groups in the Horn of Africa (HoA) protecting them from shocks and vulnerabilities and providing them opportunities to scale. The project has two components: Component 1: De-Risking and Finance. This will involve scale-up financial protection for pastoralists across Somalia with a cost-effective package of financial products and services, including insurance, savings, and (contingent) credit. To meet the needs of pastoralists and provide cost-effective protection, the best financial products would be a mix of insurance and banking (credit and savings) products. Awareness creation and financial literacy for beneficiaries will be key components of the program. Component 2: Livestock Value Chains and Trade Facilitation. This intends to connect pastoralists better to markets and strengthen the livestock value chains. To be able to link components one and two, component two will focus on technical assistance to the institutions involved in the value chain and improving quality infrastructure in testing, inspection product certification, and capacity building. The quality infrastructure ecosystem is nascent. Currently, live animal exports account for 85% of Somalia’s export earnings. Still, the lack of testing, inspection, and product certification limits the potential of Somalia to export higher added value livestock products (meat) to other markets. Quality infrastructure: equipment and capacity building for one center of excellence for quality infrastructure in the livestock sector (e.g. University of Mogadishu), including one high-end laboratory for testing livestock products; Technical assistance and capacity building to the Ministry of Commerce and Industry and the Somalia Bureau of Standards on standardization, testing, certification and accreditation for livestock products; Upgrade of quarantine centers (depending on an assessment to be carried out); Trade /Market infrastructure: (i) upgrading market centers; (ii) market information system; Seed capital to mobilize private investment into the livestock value chain. The objective of the Stakeholder Engagement Stakeholder engagement is an inclusive process conducted throughout the project life cycle. Where properly designed and implemented, it supports the development of strong, constructive, and responsive relationships that are important for the successful management of a project’s environmental and social risks. The objective of the meeting was to contribute, coordinate and continue the engagement of all relevant players (including affected persons and interested parties) throughout the project. 43 Over 150 people participated in the meeting including representatives from the Ministry of Finance, Ministry of Commerce & Industries, Ministry of Livestock Forestry & Range, Ministry of Labor & Social Affairs, Central Bank of Somalia, Somali Chamber of Commerce, Somali Bureau of Standards, delegates from the Federal Member States, Benadir Regional Administration, Mogadishu Port Authority, Gargaara Company, Takaful Insurance, Commercial Banks, Agro Pastoral Companies, Persons with Disabilities, Women, Youth, and Development Partners who joined the meeting online. On November 27-28, 2021, a stakeholder/public consultation for DRIVE Project was held at Jazeera Hotel in Mogadishu. The meeting officially started with statements and presentations from key meeting representatives. Subsequently, participants separated into groups for discussions and brainstorming to introduce their views on the project. Statements and Presentations SCALED-UP PIU Coordinator Abukar Osman moderated the consultation sessions and welcomed participants to the stakeholder engagement meeting. He noted the purpose of the engagement is to build a consultative relationship around the DRIVE project, to assess the level of interest that stakeholders have, and to understand the views of the stakeholders particularly concerning the environmental and social aspects of the project. 1. Director-General of Ministry of Finance Saleiman S. Umar officially kicked off the consultation and stated that the DRIVE project will assist enhancement of the pastoral societies and it involves financial protection for their herds as the livestock is the backbone of Somalia’s GDP. The largest Somali exports are our livestock therefore cultivating this trade with value chains and financial products is essential. The climate shock recently devasted our livestock and our Prime Minister (PM) recently declared a state of emergency as a result of this shock. This project must be launched immediately to respond to this shock and to respond to other potential shocks. 2. Director-General of the Ministry of Commerce and Industries Abdiaziz Ibrahim Adan welcomed the DRIVE project and expressed the benefits of pastoral communities to protect their livestock from drought crisis. He also mentioned the contribution of this project to the development of the economy and improving the export of livestock and livestock products through connecting international markets. 3. Director-General of Ministry of Livestock and Forestry Range Mohamed Omar remarked the livestock sector has significant social and economic importance in Somalia. More than half of the population living in the rural areas are directly and indirectly dependent on livestock and this sector is the largest contributor to Somalia’s economic growth and livelihoods. He emphasized the recent significance of this project as the catastrophic droughts have recently wiped out a large percent of the pastoralists' livestock. 4. Chief Executive Officer (CEO) of Gargaara Suleiman Dualeh welcomed the DRIVE project. The insurance provision to the pastoral communities and the value chain for the communities is of huge importance to increasing the livelihood value of the Somali pastoral communities. The project touches the lives of our societies, creates opportunities for youth, and enhances 44 the income of our people. It is also a timely project coming at a time when the droughts have ravaged our livestock and would have been prevented through insurance and value chain activities. 5. Director-General of Somali Bureau of Standards (SBS) Adan H. Barre confirmed that SBS is well aware of the project. Insurance for our livestock which is the backbone of the economic development of the country is something that SBS welcomes as well as the value chain activities that will also facilitate our businessmen and women to engage in international markets. He stated that SBS will provide a certificate of verification on both imports and exports that assist pastoralists to gain international recognition. 6. Garad Farah from Mogadishu Port Authority stated that Mogadishu port facilitates pastoralists to export livestock from the port and connect to the international and regional markets, he also welcomed the DRIVE project and mentioned this project contributes to national economies. 7. Prof. Osman Abdullahi an environmental and social safeguard consultant of Somalia Capacity Advancement, Livelihoods, and Entrepreneurship, Through Digital Uplift Program (SCALED- UP) PIU delivered a presentation on the overview of the DRIVE project and highlighted the World Bank environmental and social framework policies required for Component Two of the project. 8. Benjamin Kamanga from ZEP Re (PTA Reinsurance Co.) a COMESA instituted company that promotes trade in insurance and reinsurance trade provided a significant presence on the role of Zep-Re in the DRIVE project. 9. Banerjee Rupsha and Njoki Kahiu from International Livestock Research Institute (ILRI) presented an essential and beneficial study about the technical and socio-economic landscape for product design in Puntland. After that Abdirahman B. Dubad from SomRep, comprehensively explained this study in the Somali language for participants to get a deeper understanding. Focus Group Discussions Key themes to Responses cover Perception of the The project is a useful solution for the drought and other natural disasters project that repeatedly affect pastorals, it also lifts the living standard of those beneficiaries, similarly, this will ease trade for pastorals both domestically and internationally. The project creates employment opportunities and stimulates the volume of the collection of national revenues and, the economic growth of the country. In general, security is the major obstacle or impediment to the success of the project. Lack of human capital and experts, lack of collaboration between stakeholders, including national and subnational institutions, and the timing of the project shall be consistent with the inventive planning of the project. 45 Key themes to Responses cover Poor management and lack of transparency will be a negative outcome for the project. These risks are prevented or mitigated to set up a joint committee whose principal task would be to create a bridge between recipients and donors and also receive grievances and complaints from the pastoralists to resolve. Establishment Independent monitoring and evaluation team, holding regular meetings between stakeholders, and putting in place communication channels. Exclusion during Internally Displaced Persons (IDP) groups are trapped in situations where project design and they depend on external aid which is often maintained by local Non- implementation Government Organizations (NGOs) and some international organizations. Often tension is reported between IDPs and their host communities in many parts of the country, this causes exclusion of either public engagement or benefits of the project, therefore the federal member states need to recognize the rights of IDPs. Persons with disabilities are one of the most marginalized segments in society. Most of them do not have access to education, and training and thus remain deprived of gainful employment. Therefore, People with Disabilities are more likely to be excluded from participation and benefiting from the project, however, creating the adequate opportunity for development programs and participating in the project design and implementation is more effective and helpful to upgrade their lifestyle. Stakeholder Creating an understandable environment for using social mobilizers to make engagement outreach to the remote villages, would be a cooperative way to consult with community leaders and pastoralists to inform the effectiveness of the project in their society. Also, media (radio programs) can be used to educate how insurance works through Takaful companies and livestock associations to influence pastoralists to make their voices heard. Therefore, it is necessary to provide capacity-building training for project staff who will reach remote villages for engagement with rural and nomad people. However, the country is currently in a state of drought, the first step is to recover from the drought that has affected many parts of the country, then the project could be implemented and still effectively reach the people affected by the drought to comprehend insurance program to protect their livestock from possible droughts in the coming years. 46 Key themes to Responses cover Involvement of the target beneficiaries of this project is needed because most of the pastoral society is illiterate and they live in rural areas that making it difficult to get accurate information for the implementation of this project. Labor-related risks Labor law of the country specifies 15 years old as the minimum working age and provides some framework of legal protection against child labor, equal payment, and working conditions. However, in rural areas, children and women are the main guardians and keepers of livestock such as goats, cows, and sometimes camels. The government shall investigate child labor to eliminate poor working conditions for children. Socio-cultural The religious and traditional leaders may have an objection to the project beliefs because our society has no idea about the insurance system, and they believe that it is against religion and Somali culture. It requires an understanding of insurance and how it works, and the importance of the project to protect livestock against drought shocks. It is also better to use Takaful companies to sit with the religious leaders and explain the effectiveness of insurance to pastoral livestock. Security issues The project is exposed to great security risk due to the lack of strong and conflicts government presence in all regions of Somalia. For instance, most Jubbaland districts are not in the hands of the government, same as Southwest and Galmudug, there are many districts in the hands of al-Shabaab and it will be difficult to implement the project unless the government authority controls and take responsibility for those regions. Failure to get the expected result in some areas which are being controlled by specific armed clan militia, furthermore, kidnaping government staff and asking them to spend large ransom of money is the most security challenge that may face the implementation of the project. It is hard to continue the exchange of trade during the conflicts, so the pastoralist pays money for a bribe to the armed groups to move their herds to the markets, as livestock are being transported through conflict zone, this causes to stopover livestock trade in conflict areas and shift into a new market. 47 Key themes to Responses cover Gender-Based Although women who live in rural areas play a crucial role in the maintenance Violence (GBV) of household livelihoods, they have less access to productive resources and employment opportunities. However, they meet threats in the nomadic society which men are the head of the family. There are police stations which could report GBV related cases in the nomadic and non-nomadic pastoralist but the community does not allow women to file complaints, and they force them to hide their problems. However, the incident is usually traditionally solved via clan elders. The project shall support the protection of women and not violate their rights among the society. Provide schools for their children and deliver health services. Occupational In the face of this unprecedented pandemic, ministry of health is working Health and Safety with World Health Organization (WHO) to support Corona Virus Disease- 2019 (COVID-19) response. Across the country, communities have been hit hard by the sudden spread of COVID-19. Though there is not exact data of nomadic people who affected the COVID-19. There has been a lack of consistency in national and sub-national policy to guide pastoralists to avoid transmission of and protect COVID-19. The appropriate measures to prevent the spread of COVID-19 should take and fulfil advice suggested by the health workers such as cleaning and washing hands, wearing a mask when physical distance is not possible, reduce public gatherings, and developing a campaign of vaccinating rural communities. Grievance The most efficient way the beneficiaries could raise their grievances is to mechanisms establish a committee from the society and project implementers to register the aggrieved individual and solve complaints. In case a grievance not addressed at the committee, the project shall create various channels that register grievances such as phone line or website. Recommendations - Organize occasional workshops every three to four months, share experiences, information and knowledge with stakeholders. - Create more supervisors who will follow up on the project and ensure that things are done properly and wisely. - Create a pastoralist agent or pastoralist association to record basic information that will make it easier for government to monitor. - Insurance payment shall be reasonable as pastoralists may find it difficult to persuade the insurance system. 48 Key themes to Responses cover - Deeply assess the culture of the community if there is an impact on the implementation of the project. - Increase pastorals knowledge and skills to understand the insurance system. - Build the infrastructure that facilitates regional and international trade. - Establish feedlot farming and drill wells to overcome water shortages in remote villages. - Develop a pastoral identification system which helps the selection of the appropriate beneficiary. Closing Statements 10. Sonia Plaza from World Bank provided a comprehensive overview of DRIVE project and its contribution to economic growth through the protection of pastoralists against the drought shocks. The insurance mechanism and the livestock value chain for regional trade, support the improvement of quality infrastructure and access to international markets. Sonia started the WB will provide technical assistance and capacity building to the Ministry of Commerce & Industry, Ministry of Livestock, Somali Bureau of Standards, and institutions that working on the digitalization of certificates, visibility studies, and testing labs. She also mentioned the WB are working with the Central Bank of Somalia to develop a roadmap for insurance and reinsurance of livestock including sharia compliance and takaful regulations. 11. Hon. Abdulkadir Sharif Sheikhuna State Minister of Commerce and Industries thanked the WB for their developmental projects to Somalia. He highlighted the importance for the DRIVE initiative protecting the pastoral communities' livestock against drought. He was finally thankful to the participants for their enthusiasm and openness to contribute experiences and valued ideas to the consultation. 49 11.2.1 Meeting in Pictures 50 51 11.3 Annex III-a: List of Meeting Attendees During SEP Preparation Virtual Participants No Name Gender Institution 1. Abdulkadir Sharif Sheikhuna M State Minister – MoCI 2. Saleiman S. Umar M DG – MoF 3. Mohamed Omar M DG – MoFLR 4. Sonia Plaza F World Bank 5. Thibault Bouessel du Bourg M World Bank 6. Jaafar Mohammad M World Bank 7. Haroub Ahmed M World Bank 8. Qhelile Ndlovu F World Bank 9. Evie Calcutt F World Bank 10. Sammy Ratemo M World Bank 11. Benjamin Kamanga M Zep-Re 12. Banerjee, Rupsha F ILRI 13. Njoki Kahiu F ILRI 14. Kelvin M. Shikuku M ILRI 15. Nishant Das M WVI 16. Abdul Qadir Rafik M UNDP 17. Said Khaled M FAO SO 18. Laura Rio M UNDP 19. Patrick Mutinda M DRC 20. Nimo Jirdeh F UNDP In-Person Participants 21. Abdiaziz Ibrahim Adan M DG – MoCI 22. Adan Hassan Barre M SOBS 23. Suleiman Dualeh M Gargaara 24. Abukar Osman M PIU 25. Prof. Osman Abdullahi M PIU 26. Abdimajid Omar M PIU 27. Zakariye A. Ahmed M PIU 28. Mohamed A. Said M PIU 29. Mohamed Hussein M PIU 30. Ahmed H. Mohamed M PIU 31. Abukar Sayid Ali M PIU 32. Ahmed Abdirahman M SomRep 33. Abulkadir M. Abdi M My Bank 34. Abullahi Mohamed Abdi M MOHADMA 35. Omar Hussein M BRA 36. Ahmed Omar Abdullahi M BRA 37. Abdullahi M. Barre M Dahardher Agritech 38. Sharif Nur Yusuf M IBS Bank 39. Garad Farah M Mogadishu Port Authority 40. Mohamerd Nur M Mogadishu Port Authority 52 41. Lul Mohamed Hassan F BRA 42. Ibrahim Adan Ali M MoCI – Southwest 43. Abdi Dahir Abdi M MoCI – Fedaral 44. Abdillahi Mursal Hussein M MoCI – Puntland 45. Zakarie Sharif Ahmed M MoCI – Galmudug 46. Yasin Abdinasir Ali M MoCI – Federal 47. Abdullahi Hassan M Barkhadle Group 48. Ahmed Ali Mohamed M Takaful Insurance 49. Abdullahi Ibrahim Osman M MoCI – Hirshabelle 50. Hassan Ahmed Osman M MoF – Hirshabelle 51. Hassan Dhi’isow Olow M MoLFR – Hirshabelle 52. Ali Hassan Muse M SOWELPA – Livestock Association 53. Ahmed Takow M BENALPA – Livestock Association 54. Mustaf Sheikh Ali M University Lecturer 55. Mohamed Adan Somane M MoF 56. Safiya Ahmed Ibrahim F SIMAD University 57. Ayan Ilyas Ahmed F Women Business Association 58. Abdulkadir Dahir Farah M Dunya Veterinary 59. Mohamed Abdi Elmi M Isra Consulting Group 60. Khadija M. Hussein F HSS – MoLFR 61. Dr. Adan Hussein Derow M MoLFR 62. Hassan Ahmed Hassan M Chamber of Commerce 63. Sundus Abdullahi Hussein F MoLSA 64. Hassan Mohamed Hassan M Daryeelka Xoolaha 65. Abdullahi Ali Farah M MoLFR – Jubaland 66. Abdirizak Ali Rage M CAHW 67. Abdirizak Jama M Jubaland Meet Company 68. Dr. Shukri Mohamed Yusuf M MoLFR – Jubaland 69. Khadija Osman F 70. Abdirizaq Sama M JMDC 71. Mohamed H. Mudey M Fiso Takaful 72. Abdihakim Mohamed M Fiso Takaful 73. Abdusalam Mohamed M Puntland State 74. Abdulkadir Abdi M CERELPA – Livestock Association 75. Abdiwali Mohamud Dhaqane M Daaqa Agro 76. Ahmed Ali Hassan M MoF 77. Abdulkadir Adan M MoLSA 78. Osman Hassan Afrah M Salro 79. Zakariye Ibrahim Isse M Daaqa Agro 80. Isse Farah M MoF 81. Abdirizaq Nur Yusuf M CBS 82. Mohamed Ismail Said M CBS 83. Adan Isaq Adan M Hormud Telecommunication 84. Maria Mohamed Ali F IBS Bank 53 85. Abas Sheikh Ali M FAO 86. Isse Mohamed Isse M Baraka Insurance 87. Feisal Mohamed Hashi M MoF 88. Yusuf Abdirahman M Som Milk 89. Adan Abdi Osman M COOPI Organization 90. Majido Adan Mohamed F COOPI Organization 91. Ismahan Hassan Mohamed F MoLFR 92. Hussein Amin M SomRep 93. Abdiaziz Ibrahim Ali M MoCI 94. Mohamed Jama M MoF 95. Farhiyo Hassan Adan F BRA 96. Mohamed Ali M Premier Bank 97. Mowlid Abdulahi M MoLFR 98. Roble Ibrahim Omar M Amal Bank 99. Hussein Abdi Warsame M Banadir University 100. Iqra Ali Abdirahman F Banadir University 101. Khadija Abdi Hassan F IBS Bank 102. Abdinasir Ali Omar F MoF 103. Abdullahi Ali M MoLSA 104. Rashid Omar M Premier Bank 105. Masud Tahlil M SIMAD University 106. Abdullahi Abdulkadir M OOG Dairy 107. Abdirizaq Yusuf Abdirahman M OOG Dairy 108. Abdullahi Tahlil M SICPA 109. Layla Ali Mohamed F Women Business Associations 110. Hani Salad Matan F Women Business Associations 111. Sahra Abdirizaq F Women Business Associations 112. Mohamed Bashir M Malab Dairy 113. Qali Ahmed Haji F 114. Mahdi Abshir Omar M PWDs 115. Aisha Ismail F Gargaara 116. Burhan Siad Salah M SICPA 117. Fardowsa A. Ali F Women Business Associations 118. Abdulkarim Abdulle Yusuf M Someat 119. Nadar Hute Muhiyadin F Women Business Associations 120. Mohamed H. Abdi M 121. Fardowso Abdirahman F Abraar Company 122. Nasir Abdi M UNDP 123. Abdifatah Mohamed Ibrahim M Dunya Veterinary 124. Amal Mohamed Warsame F Puntland 125. Abdirahman M. Omar M Amana Insurance 126. Sharmarke Abdisalam M MoF – Accountant General 127. Salim Omar Nur M MoLFR 128. Osman Ibrahim Yusuf M Izma Production 54 129. Mohamed Ali Hashi M Community Member 130. Abdushakur Abdirahman M SNU 131. Abdiwali Said Barre M Dairy Farms Puntland 132. Maymun Abdullahi F Women Business 133. Ali Hassan M Aran Agro Farm 134. Abdulqadir Mohamed Shair M PWDs 135. Anwar Mohamed Ali M PWDs 136. Abdifatah Mohamed Hassan M PWDs 137. Abdirizaq Warsame M PWDs 138. Faduma Sheikh Ali F Women Business 139. Abdirahman Shuayb M PWDs 140. Abdirizaq Warsame M PWDs 141. Hassan Ahmed Osman M Hirshabelle 142. Ismahan Hassan Mohamed M MoLFR 143. Salma Sheikh Omar F MoERA 144. Aisha Abdi Isak F PWDs 145. Hafsa Haji Abdi F PWDs 146. Ibrahim Mohamed M SNU 147. Bakar Abdi M Community Member 148. Barre Ahmed M Sahan Drugs 149. Dr. Ahmed Salad M Sahan Drugs 150. Abdirizaq Mire Hashi M Beder Dairy & Meat 151. Abdirahman Hassan Yusuf M Raas Farm 152. Nasteho Ahmed F iLAB 153. Guled Abdi Ahmed M MoLFR – Galmudug 154. Malyun Ali Said F SIMAD University 155. Abdikarim Hassan Ibrahim M SIMAD University 156. Roble Ibar Dirie M Amal Bank 157. Dr. Qassim Abdi M MoLFR – Federal 158. Haykal Dahir M UNDP 159. Ibrahim Dahir Osman M Shafi Honey 160. Abdulkadir Dahir M Dunya Bile 161. Ibrahim Dahir Osman M Somali National University 162. Abdirahman B. Dubad M SomRep 55 11.4 Annex III-b: Stakeholders Engaged during the Social Assessment Key Informant List Nugaal Region +B1:D31 Name Title Region/District Ahmed Said Salah RVO Nugaal Ahmed Abbas Ahmed Elder Hasbahale Said Hussein Elmi Elder Burtinle Mudug Region Salad Ali Hussein RVO Mudug Yassin Gelle Warsame Elder Bursalah? Bari region Mohamed Ismail Warsame RVO Bari Mohamud Abdullahi Hirad DVO Bosaso Anfac Hassan Hange PWVA Bosaso Karkaar Region Mohamed Abdirahman Mohamed RVO Karkaar Abdi’Aziz Khalif Yusuf Elder Qardho Sanaag Region Feisal Abdullahi Ali RVO Sanaag Khadro Abdirahman Mohamud DVO Badhan Hassan Said Osman Elder Badhan Haylan Region Mohamed Ali Mohamed RVO Haylan Faisal Jama Herzi Elder Dhahar Farha n Aden Isse Elder Dhahar Sool Region Said Muse Eid Elder Taleh Mohamed Adan Gelle Elder Xudun Cayn Region Saxardid Ismail Weyrah Elder Cayn Mohamed Osman Bahalcade Elder Widhwidh Vet Professionals Khadar Mohamud Abdullahi Vet Practitioner Gardafu 56 Key Informant List Ayuub Abdullahi Mohamud Vet Practitioner Galkio Ahmed Ali Farah Vet Practitioner Jariiban Ali Jama Yusuf Vet Practitioner Dangorayo Ahmed Mohamud Aden Vet Practitioner Badhan Idil Yassin Abdi PWVA Ufayn Xaliye Jama Yusuf Elder Eyl 57 11.5 ANNEX IV: Grievance Registration Form (GRM/001) Date: ___________________________Grievance Number: ______________________________ Plaintiff: ______________________________________________________________________ Cell Phone: _______________________ Village: ____________________________________ Chiefdom: ______________________ District: ______________________________ Province: __________________________________ Grievance Category (e.g. land, house, etc.): ___________________________________________________________________ Grievance location (Village, Ward, District): __________________________________________ ______________________________________________________________________________ Description of grievance: ________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Signature of Recording Officer: ___________________________________________________ NB: The information and details provided herein will be kept and remain confidential and anonymous and under no circumstances will the details be revealed save for instances of victim protection only. 58 11.6 ANNEX V: Acknowledgement Receipt (GRM/002) Complaint no.: ………………. Date of issuing complaint: ……………………. (dd/mm/yyyy) Place of issuing complaint: Village/Town/City/Area: …………………... District: ……………………… Details of the Complainant: Name: ………………………………………. Age: ………………………… Address: …………………………………...... Gender………………………. Email address: ……………………………. Phone no. …………………… Supporting documents submitted: i. ……………………………………………………………………………………. ii. ……………………………………………………………………………………. iii. ……………………………………………………………………………………. iv. ……………………………………………………………………………………... v. …………………………………………………………………………………… Summary of complaint: ………………………………………………………………………………………………………………………………………………………… …………………………………………………… ………………………………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………………………………… … Name of Officer receiving Complaint: _____________________________________ Signature of Officer receiving Complaint: ___________________________________ All information and details of the parties must be kept confidential and anonymous. 59 11.7 ANNEX VI: Meeting Record Structure (Grievance Redress Committee & Other Meetings) (GRM/003). Date of Meeting: ……………….……… Complaint no.: …………….………Venue of Meeting: ………………………. List of participants: Complainant Side Grievance Redress Committee Members 1) 1) 2) 2) 3) Summary of Grievance: ………………………………………………………………………………………………………………………………………………………… ………………………………………………… …………………………………………………………………………………………………… Key discussions: 1) 2) 3) 4) 5) Decisions Made/Recommendations by the Grievance Redress Committee: 1) 2) 3) Status of Grievance (tick where applicable): Solved Unsolved Chair person’s name: _________________________ Chair person’s signature: ______________________ Date (dd/mm/yyyy): __________________________ All information and details of the parties must be kept confidential and anonymous. 60 11.8 ANNEX VII: Grievance Investigation Report (004) PARTICULARS OF THE GRIEVANCE Name of Complainant: Grievance Reference Number: Grievance Category : Grievance Description: Grievance location (District, Ward, Village): TYPE OF INVESTIGATION CONDUCTED Field or Site Visit: Desk Review: Date Yes. ( ) No. ( ) Yes. ( ) No. ( ) Conducted: Key people consulted/interviewed: Description of the scope of the investigation: Summary of the findings: Recommendations Responsible/Investigation Officer Name: Signature: Designation: Date: FMS: Province District All information and details of the parties must be kept confidential and anonymous. 61 11.9 ANNEX VIII: Quarterly Report of Registered Complaints (GRM/005) Location ………………. Date (dd/mm/yyyy) ……………. Period (Quarter ending) ………...................... i. Details of Complaints Received: Place of issuing Name & Location of Date of Receipt Complaint no. complaint Address of complaint/concern complainant ii. Details of Grievance Redress Meetings: Date of meeting Venue of meeting Names of Decisions/Recommendations participants made iii. Details of Grievances addressed: Date of issuing Category of Category of Brief description Date of complaint complaint grievance of grievance complete resolution (Note: Copy to be submitted to the Project Coordination Unit) 62