UNOPS and KfW sign EUR 16.6 million financing agreement to strengthen sustainable land and water management in Puntland, Somalia

Mogadishu, 27 August 2026 - UNOPS and KfW Development Bank have signed a EUR 16.6 million financing agreement, funded by the Federal Ministry for Economic Cooperation and Development (BMZ) through KFW, to implement the Sustainable Land Management in Puntland (SLM-P) project. The 4-year project is expected to benefit approximately 75,000 people, in rural communities and internally displaced persons (IDPs), by strengthening sustainable land and water management and supporting more resilient livelihoods in Puntland, Somalia. The signing took place in Mogadishu in the presence of a KfW delegation and the UNOPS Somalia Country Director. 

The SLM-P project aims to strengthen the sustainable use and productivity of land and water resources across Puntland. To address key challenges affecting rural livelihoods, including water scarcity, land degradation, soil erosion and increasing climate vulnerability, the project will follow a comprehensive environmental resilience approach, focused on infrastructure development, watershed management and climate smart practices. Its interventions will prioritize improving soil conservation, as well as rehabilitating and expanding infrastructure for the storage and protection of multi-use water sources, while strengthening community skills, assets and practices related to land use, agriculture, livestock and water management. Its scope also includes strengthening the capacity of communities and relevant government institutions to sustainably manage land and water resources. Emphasizing local ownership, the project will actively engage local communities, including smallholder farmers, pastoralists, women-led households and groups, youth, displaced people, as well as local committees and community-based organizations, as key partners in the sustainable management of land and water resources.

 “The signing of this agreement marks not the end of our journey, but the beginning of a long-term collaboration with UNOPS, the Federal Government of Somalia and the state of Puntland to develop and strengthen the sustainable use of land and water resources by communities in Puntland, while building the capacities needed to enhance their resilience.” - Michael Wehinger, Head of Department, East and West Africa, KfW “We are grateful to the German Federal Ministry for Economic Cooperation and Development (BMZ) for its generous support in funding the Sustainable Land Management Project in Puntland. UNOPS is fully committed to working closely with KfW, the Federal Government of Somalia, the Puntland State, and all relevant stakeholders to respond to climate change and strengthen the sustainable management of land and water resources, enhance community resilience, and ensure that the investments and capacities developed through this partnership deliver lasting and meaningful impact.” Ala’a NEMER, Country Director, UNOPS Somalia

As the Project Executing Agency, UNOPS will be responsible for overall project management, fiduciary oversight, procurement and delivery of project outputs in accordance with agreed standards and donor requirements. Implementation will be undertaken in close coordination with relevant government institutions and other partners to ensure effective delivery and alignment with local priorities. In line with Somalia’s broader development priorities, including the National Transformation Plan 2025-2029 and the Puntland’s Development Plan-4, the SLM-P project is designed to complement other climate resilience and water management initiatives in Puntland. Its watershed and land restoration activities will complement investments under programmes such as ACALS and Somalia Water for Rural Resilience Project (Barwaaqo), helping protect water infrastructure, improve land productivity and strengthen resilience to recurring climate shocks. The initiative contributes to Somalia’s broader development priorities, including the National Transformation Plan 2025-2029, and is aligned with Puntland’s Development Plan-4, particularly its priorities on climate action, environmental sustainability and sustainable economic development.