EU re-starts direct financial support to Somalia

Such assistance is composed of fixed and variable installments, the latter depending on the progress made with an agreed set of economic and social reforms.

News Keydmedia Online
19 July 2022

MOGADISHU, Somalia - The European Union (EU) has disbursed EUR 13.5 million in budget support to the Federal Government of Somalia

This payment of EUR 13.5 million to the national treasury is part of a EUR 92.9 million budget support and debt relief programme for Somalia financed by the EU and first agreed upon in 2018. Such assistance is composed of fixed and variable instalments, the latter depending on the progress made with an agreed set of economic and social reforms.

EU direct support to the federal budget is aimed at supporting the implementation of Somalia’s National Development Plan (NDP-9) and supporting economic reforms towards achieving Completion Point under the Heavily Indebted Poor Countries (HIPC) Initiative. With this payment, the amount disbursed to Somalia under this programme reaches EUR 71.9 million.

EU Ambassador to Somalia, Ms Tiina Intelmann, noted: “President Hassan Sheikh Mohamud recently expressed his commitment to pursue political, security and economic reforms. This provides a basis for constructive engagement between Somalia and the EU. I am therefore glad to announce that today we have been able to resume our budget support operations. This is part of our commitment to support Somalia’s inclusive growth, reconciliation and state-building efforts.”