EU releases EUR 20.5 million in budget support to Somalia

The European Union (EU) has approved a EUR 20.5 million budget support payment to the Federal Government of Somalia (FGS), under the EU's Somalia State and Resilience Building Contract and Support to Debt Relief Action (SRBC). This coincides with the FGS and EU launching the Joint Operational Roadmap for a renewed engagement between the EU and Somalia, which outlines joint priorities for the next two years.

With this disbursement, the EU supports the FGS to implement its national development and stabilisation plan and remain on track with the Heavily Indebted Poor Countries (HIPC) process. The EU Ambassador to Somalia, Ms. Tiina Intelmann, noted: 'With HIPC completion point in sight, Somalia will soon reach a historical milestone, which will bring new opportunities but also challenges. Increasing domestic resource mobilisation and further improving financial governance are absolutely critical to advance the economic reform agenda and further the state-building of Somalia. The EU looks forward to continue supporting and working closely with Somalia to tackle these challenges to ensure that more and better services are delivered to Somali citizens.'

H.E. Dr. Elmi Mahamoud Nur, Minister of Finance of the FGS, stated: 'the EU budget support is an invaluable source of assistance to ensure our government strengthens the ongoing reforms and delivers basic public services to the people'.

Cumulatively, under the SRBC, a total amount of EUR 82.9 million has been released since 2018 as budget support to the Federal Government of Somalia (FGS). The EU budget support operation has assisted the Federal Republic of Somalia to ensure the delivery of core state functions, underpin macroeconomic stabilisation measures and, with the onset of Covid-19 and other concurrent crises, prevent a serious deterioration of the economic and social situation.

Source: Somali National News Agency