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Item Role of Institutional Capacity Building in Establishing Effective Governance in Jubaland State of Somalia(Journal of International Business, Innovation and Strategic Management, 2020) Abdi, Abshir Mohamed; Njoroge, JaneThrough effective governance, sustainable growth and poverty reduction can be achieved since public resources would be managed well, quality services would be accessible and the goals for sustainable development will be achieved. Effective governance is what brews functionality of government. There is a wide agreement among scholars that despite progress across the globe in ensuring effective governance, democracies in some of the regions are still widely fragile. Bureaucracy in Jubaland State still faces challenges that range from economic problems, political fragility, structural and administrative challenges which render the governance ineffective. Even though there are efforts from the Government of Jubaland, non-profit organizations, national government and other organizations, the situation doesn’t seem to improve. There is an argument that the administrative role of capacity building can ensure effective governance and that is why this study sought to find out the role of institutional capacity building in establishing effective governance in Jubaland State of Somalia. The study was anchored on the New Public Management (NPM) Theory in explaining the link between the study variables. A descriptive research design was adopted by the study because of the need to interrogate the issue using quantitative and qualitative research methods. The target population of the study was categorized into the public administration representatives of Jubaland focusing on Gedo, Middle and Lower Juba regions as well as three members from each of the 43 civic groups that operate in the state and reflect the opinions of the citizens. A census was conducted on the three regions of Jubaland. A total of 180respondents we retargeted by the study. A semi-structured questionnaire which has both open and closed questions was adopted for the study to collect qualitative and quantitative data. Before its use, a pilot study was conducted on 10 questionnaires to establish its validity and reliability. Reliability was enhanced by checking the internal consistency of the research instrument using Cronbach’s (α) reliability coefficients at a threshold of 0.7. Validity was established through the opinion of the supervisor on the clarity of the questionnaire. The study findings indicated that Jubaland administration has made efforts to build its institutional capacity to a high extent and that institutional capacity building is positively and significantly associated with effective governance. The study recommends that the administrative government of Somalia should further invest in improving and developing the civil servant’s capacity such as administrative, public finance management, technological adequacy and coordination capacity. This would further improve the governance.