Communique from Finance Ministers Roundtable – 21 April 2022

We, the Finance Ministers of Djibouti, Ethiopia, Kenya, and Somalia, held the 12th Ministerial
Meeting of the Horn of Africa Initiative today in the margins of the World Bank / IMF Spring
Meetings. H.E. Amb Ukur Yatani, Cabinet Secretary of National Treasury, Kenya chaired the
meeting.

We acknowledge the continued support and commitment of our Development Partners (DPs) —
the African Development Bank, the European Union (EU), and the World Bank Group — and thank
them for their support in advancing the Horn of Africa Initiative (HoAI). We also appreciate the
continued technical support of the Intergovernmental Authority on Development (IGAD). We are
happy to see H.E. Agak Achuil Lual, Minister of Finance and Planning of South Sudan, attended
the meeting and that South Sudan was welcomed as a full member and look forward to working
closely with the country on the regional integration agenda supported by HoAI.

Covid-19 and climate shocks continue to threaten the Horn, coupled with the situation in Ukraine
on wheat, cereals, food products exportations and price. Even as Covid-19 appears to be abating,
climate change is aggravating droughts and food insecurity. We reviewed the drought and food
security situation in the Horn with an anticipated 49 million people in the region expected to be
at risk by September 2022 and we discussed possible national and regional responses. These
development challenges highlight the need for targeted investments for resilience, water,
agriculture, pest control and value chains including in the borderlands, while also strengthening
disaster risk financing to ensure preparedness in dealing with contingencies such as the fire in
Somalia. We call for greater technical and financial assistance for emergency and medium-term
programs aimed at boosting resilience, food security, trade and market ecosystems in the Horn.

We note that as the Initiative has matured, the Ministers need to be updated on the
implementation status of the HoAI package and how regional cooperation continues to be the
bedrock during implementation; widen the group of stakeholders with initial outreach to the
private sector; further outreach to other development partners to complement the current DPs;
and need to accelerate project preparation in countries that are lagging in implementation to
ensure all countries are moving forward. As it was done at the HoAI Ministerial in Brussels in
February 2022, efforts should be continued to bring on board new DPs while preserving the
country-led focus of HoAI.

We see a nuanced focus of the Initiative on implementation issues and on “soft” policy
harmonization to enhance the enabling environment for the investment operations. The
summary outline of policy priorities on trade facilitation and energy trade presented by the
stakeholders will serve as a starting point for catalysing policy harmonization in trade and energy.
Similarly, the role of private sector in maximizing finance for development cannot be overstated.
Private sector engagement and public-private partnerships ensure sustainability and greater
ownership of development processes and will play an important role in bridging the financing

gap to complement the support from HoA Governments and the development partners. We
propose that the members set up task forces of on policy harmonization and private sector
engagement, respectively, to draw up a concrete menu of actions that can be undertaken by the
members of the Initiative for leveraging higher results from investments. We call upon the
development partners to provide required technical assistance to the task forces so that they can
finalize the action plans within reasonable time to us.

We are happy that the Initiative has mobilized over US$4.5 billion of concessional finance for
projects under the priority package. We look forward to the development partners to scale up
their support to the HoAI priorities. We reaffirm our commitment to work with the development
partners to continue the outreach for maximizing finance for development in the Horn of Africa,
including through the Multi-Donor Trust Fund to support project development and investments.
We thank H.E. Amb Ukur Yatani, Cabinet Secretary, for his collegial and effective leadership and
the Head of the Secretariat for overseeing the activities of the Initiative on his behalf.

We propose that the 13th HoAI Ministerial to review implementation progress of the HoA
package, policy harmonization in trade and energy, and progress in bringing in other donors and
private sector engagement be convened in Mombasa in June 2022. We instruct the Secretariat
to flesh out the format and other details of the meeting in due course in collaboration with
national focal points and the DPs. We also welcome the idea of convening a meeting of the Heads
of States in 2023 to showcase the achievements of the Initiative, and to raise its profile at the
highest level.

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