Why the fragility penalty keeps stopping nations from getting the help they need

Somalia’s opportunity at the G20

The UK is due to take over the G20 presidency next year, creating an opening to shape debate on development and international cooperation. Somalia hopes its priorities, and those of other fragile and climate-vulnerable countries, will be heard.

Somalia shares the UK’s focus on climate security. Repeated droughts and floods have contributed to food insecurity, displacement, pressure on public finances and humanitarian crises, according to Obsiye. He says similar challenges affect other countries too.

Why finance remains difficult

Somalia’s debt relief process took nearly a decade and was championed by the UK. Obsiye says the process showed that fragile states can carry out difficult reforms with domestic ownership, political continuity and lasting international backing.

Debt relief in 2023 did not resolve Somalia’s underlying fragility, he argues. Complex accreditation, financial oversight and project rules can favour countries with stronger institutions, making international and climate finance harder for fragile states to access.

Reforms and investment proposals

Obsiye wants the UK to give fragile states’ financing needs a distinct place in its 2027 G20 agenda. He says reform should consider whether grants and affordable, highly concessional loans are suitably balanced for countries facing recurring shocks.

He also urges stronger representation for fragile states in financial decision-making, including in IDA replenishments and wider international financial institution governance. For private investment, he proposes a shared approach that expands development bank risk-sharing tools and draws on the City of London’s financial expertise.

The UK has supported customs reform and public financial management in Somalia, and remains an ally in security sector development. Obsiye says its work to improve climate finance access for vulnerable nations gives it a record to promote during its G20 presidency.