In a significant boost to Somalia’s ongoing efforts towards development and stability, the European Union (EU) has approved a generous budget support payment of EUR 20.5 million to the Federal Government(FGS). This financial assistance comes as part of the EU’s Somalia State and Resilience Building Contract and Support to Debt Relief Action (SRBC). Coinciding with this allocation, the FGS and EU have jointly launched the Joint Operational Roadmap, which sets out their shared priorities for the next two years.
The EU budget support serves as an invaluable resource to aid the government in strengthening ongoing reforms and delivering essential public services to its citizens. With this disbursement, the EU is backing the FGS in implementing its national development and stabilization plan, while remaining on track with the Heavily Indebted Poor Countries (HIPC) process.
Ms. Tiina Intelmann, the EU Ambassador to Somalia, emphasized the importance of this collaboration, stating, “With HIPC completion point in sight, Somalia will soon reach a historical milestone, which will bring new opportunities but also challenges. Increasing domestic resource mobilization and further improving financial governance is absolutely critical to advance the economic reform agenda and further the state-building of Somalia. The EU looks forward to continuing its support and working closely with Somalia to tackle these challenges and ensure that more and better services are delivered to Somali citizens.”
Further, H.E. Dr. Elmi Mahamoud Nur, Minister of Finance of the FGS, expressed gratitude for the EU’s unwavering support, affirming that “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.” This financial injection will undoubtedly play a crucial role in the country’s path to progress.
Since 2018, a total amount of EUR 82.9 million has been released under the SRBC, reinforcing the EU’s commitment to the Federal Government of Somalia. The EU budget support operation has facilitated the delivery of core state functions, underpinning macroeconomic stabilization measures. In the face of unprecedented challenges posed by the Covid-19 pandemic and other concurrent crises, this support has played a vital role in aiding the country economically and socioeconomically.
As Somalia prepares to achieve the HIPC completion point, it stands on the cusp of a new era filled with opportunities. The collaboration between the FGS and the EU, as outlined in the Joint Operational Roadmap, lays the foundation for a renewed engagement, focusing on shared priorities that will drive sustainable development, economic growth, and state-building efforts in the country.
